There is not much going for electricity prices in South Africa, making them an onerous concern for the consumer and business alike. The year 2025 saw another fresh increase in electricity prices, with voices being raised over affordability, infrastructure viability, and the country’s power future.
It becomes imperative to understand what drives these price changes and their bearing on everyday life for better planning.
Why Does Eskom Break the Price Hikes of 2025?
Price variation in electricity within South Africa is mainly governed by Eskom, a state-owned utility. In early 2025, Eskom received NERSA’s sanction to increase tariff rates, which it proposed to implement for financial recovery and to carry operations for maintenance and upgrade.
The countrywide utility found itself being kept on the edge of position because of various issues, namely those of huge debts, aging infrastructure, and huge expenses on transitioning towards sustainable energy sources.
Exactly How Much Are Electricity Prices Increasing?
With an average increase of over 12% in 2025, electricity tariffs have thus far lowered the expenses for the average consumer at home or at work. The percentages of increments are dependent on how much is being consumed and on where the consumption takes place; however, most South African families are feeling the effects in their monthly cash flows. Small companies, for one, are bearing the brunt of this as they generally use electricity in their day-to-day activities.
Effects on Household and Industry
An increase in electricity price can mean tighter budgets for the ordinary South African as well as the need to alter their consumption habits. Many households have had to do things like minimize usage, resort to more energy-efficient appliances, or even invest in alternative sources of electricity such as solar energy.
More electricity would increase production costs in the industrial sector, thereby contributing to higher production costs in general, which would subsequently result in the prices of basic goods and services.