Effective 1 April 2025, Eskom’s updated tariff structure for direct customers has officially been implemented, and the financial impact is likely to be far more severe than the 12.74% average increase approved by NERSA.
What’s Changed?
While the headline increase may seem manageable, it only takes the energy component of the tariffs into account. What is not considered in the 12.74% is the change in the tariff structure, the addition of new components to the tariff structure, and changes to the time of use brackets (for customers on tariffs that vary according to the time of day at which power is used). These changes will significantly affect total billing for many customers, especially those on Ruraflex and Megaflex. By Broadreach’s calculations, many Ruraflex customers will be facing real-world increases of up to 25% in their electricity bills, and Megaflex customers up to 18%.
The new charges are:
Legacy Charge: ~22c/kWh
A newly itemised cost reflecting Eskom’s estimate of the cost to it of the government-mandated IPP (i.e. renewable energy) procurement programme. Its not clear how this charge was calculated, nor is there any indication how this charge might change in future to take into account the fact that electricity purchased by Eskom in recent rounds of the IPP is the cheapest available.
Generator Capacity Charge: ~R3.33/kVA (fixed)
This is a new charge that has been implemented for the purpose of reimbursing Eskom for having generation capacity available. Based on the size of your electrical connection, this is an added monthly charge regardless of usage.
The other major change is that Eskom has changed the time-of-use (TOU) slots for customers who pay different tariffs depending on the time of day that power is used. The changes include two new hours of standard period on Sundays (this is effectively just a tariff increase by another name) and then re-shuffling peak times between the mornings and evenings. The diagrams below show the new TOU brackets for 2025/2026:
Why This Matters Now
Customers will first feel the impact when they receive their April bills at the end of May. That means now is the ideal time to assess your risk and explore cost-saving options before those increases hit your bottom line.
How Broadreach Can Help
At Broadreach Energy, we offer tailored assessments to:
- Analyse how these changes will impact your energy costs
- Provide guidance on optimising operations around the new TOU structure
- Offer clean energy alternatives and financing models to reduce grid dependence and ensure long-term cost stability
Let’s talk before your next bill arrives.
Broadreach Energy is here to help you take back control of your energy spend.
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