South Africans brace for increased electricity tariffs and smart meter rollout

In a move that has sparked concern among consumers, Eskom has announced an average electricity tariff increase of approximately 12%, set to take effect on 1 November 2025.

The news comes alongside the power utility's rollout of mandatory smart meter installations in homes across South Africa, a step that aims to enhance grid management and curtail electricity usage during peak hours.

Yet, these changes seem to carry a heavy burden for households and businesses already feeling the pinch of rising costs.

The National Energy Regulator of South Africa (NERSA) has approved the tariff hike, which is expected to have a ripple effect on the finances of many South Africans at a time when disposable income is at an all-time low.

The new rules come as a part of a broader strategy to manage energy demands, especially in communities dealing with high energy losses and illegal connections.

These adjustments are reminiscent of the troubling load-shedding periods that South Africans have grown to dread.

Kgosientsho Ramakgopa, Minister of Electricity and Energy, previously announced that load reduction measures are winding down, with hopes that through community collaboration, the resolution could be expedited from the initially proposed 18 months down to a potential 12 months.

However, many experts and consumers remain sceptical about the effectiveness of these measures in delivering real relief.

Neil Roets, CEO of Debt Rescue, has been vocal about the repercussions these new regulations may have on ordinary citizens.

“The power that Eskom now holds to cut off electricity during peak usage times is disturbing,” he stated, underlining the potential for severe disruptions in daily life, especially for vulnerable populations.

Roets argued these measures do not prioritise the comfort and convenience of citizens and could exacerbate existing hardships.

Asad Gaffar, chairperson of the Westville Ratepayers Association, echoed similar sentiments, suggesting that instead of controlling consumption, Eskom should focus on increasing energy output to meet the growing demand.

His comments resonated with the frustrations of many who view the new smart meters as a method for Eskom to exert greater control over consumer behaviour.

In light of this upheaval, the energy utility is urging consumers to adopt energy-efficient practices by switching to LED bulbs, turning off non-essential appliances, and considering solar energy solutions.

Furthermore, the new smart meter technology is designed to allow Eskom to disconnect users for non-payment, theoretically shielding compliant consumers from the costs incurred by those who do not pay their bills.

The backlash against these reforms is palpable, with widespread mixed reactions reported across the country.

While some see the necessity of stringent measures to balance demand, others remain unconvinced that these new policies will prevent further power crises or restore stability to the fluctuating energy landscape.

The backdrop of these changes is marked by Eskom's recent announcement of a return to profitability, reporting a R16 billion profit after tax for the financial year ending March 2025.

While this shift suggests possible financial stability for the utility, the collateral impact on consumers facing an array of financial pressures cannot be understated.

Additionally, with inflation pushing food prices skyward and the repo rate remaining at a daunting 7%, the affordability crisis continues to deepen.

The intersection of elevated electricity rates with rising living costs leaves many South Africans with little choice but to resort to credit options just to make it through the end of the year.

Roets cautioned that those facing overwhelming debt should consult with registered debt counsellors to navigate their financial challenges.

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