Eskom clarifies the 18.65% tariff increase

18 March 2023

The National Energy Regulator of South Africa (NERSA) on 10 March 2023 approved the Eskom annual tariff increases. Over 12 months of the Eskom financial year, commencing on 01 April, a 18.65% increase is applicable to Eskom directly supplied or non-municipal tariffs; which refers to Eskom’s standard tariff customers. The Municipal increase of 18.49% is effective on 1 July 2023.

A 10% increase will apply to the subsidised Homelight 20A inclining block tariff for Block 1 (>0-350kWh) and Block 2 (>350kWh). The NERSA methodology allows for cross-subsidies. The Affordability subsidy charge exists due to historically lower Homelight 20A tariff increases and is paid by the non-municipal large industrial and urban tariffs. The 2023/24 increase to the affordability subsidy for non-municipal large industrial and urban customers is 29.53% due to the growth in the subsidy to Homelight 20A tariff following only a 10% increase that is 8.65% lower than the average 18.65% non-municipal increase.

Including the increase to the Affordability subsidy charge, the 18.65% increase to the non-municipal key industrial and urban customers grows to 19.09% and is effective on 1 April 2023. During April to June 2023, the 2022/23 tariffs will be applicable to Municipalities. The 18.49% municipal increase will be effective from 1 July 2023. The NERSA 2023/24 tariff decisions will be implemented as follows:

Non-local authority tariffs (non-municipal customers) will come into effect from 1 April 2023 to 31 March 2024; and

The Local authority tariffs will come into effect from 1 July 2023 to 30 June 2024 in compliance to the Municipal Finance Management Act (MFMA).

The Eskom Standard tariff category increases are outlined in the table below.

2023/24 average Eskom tariff category increases:

Issued by Eskom Media Desk, 18 March 2023