How Eskom’s revised tariffs could impact your household budget

By MidCity Utilities (Pty) Ltd

Electricity is a necessity in every South African home, and whenever new tariff changes are announced, it’s natural to wonder what they might mean for your monthly expenses.

To support your forward planning, the home efficiency platform has provided a detailed analysis of Eskom’s electricity pricing updates for the next two years, along with an outline of the potential financial implications for consumers.

Following a court‑ordered review of an earlier tariff decision, the National Energy Regulator of South Africa (NERSA) has approved revised electricity tariff increases for Eskom. These increases are higher than those originally approved in January 2025.

Here’s how the numbers compare:

Original increase
(approved 30 January 2025)
5.36%6.19%
Revised increase
(approved 7 February 2026)
8.76%8.83%

These revisions represent a meaningful jump from the earlier figures, which is why it’s important to understand how they may affect your household budget.

To give you a practical view of what these tariff increases translate to in everyday life, we’ve calculated the estimated monthly and annual costs for typical household electricity bills. These assume your electricity usage remains the same and reflect Eskom’s average tariff increase.

1 April 2025 to
31 March 2026
1 April 2026 to
31 March 2027
1 April 2025 to
31 March 2026
1 April 2026 to
31 March 2027
R 1 000 R 1 087R 1 183R 13 051R 14 203
R 2 500R 2 719R 2 959R 32 628R 35 509
R 4 000R 4 350R 4 734R 52 204R 56 814
R 5 500R 5 981R 6 509R 71 781R 78 119

*Estimates are based on Eskom’s average tariff increases and unchanged consumption. This is applicable to direct Eskom consumers.

These increases may appear small month‑to‑month, but add up significantly over a full year, especially for homes with higher electricity usage.

Not all households buy electricity directly from Eskom. If your electricity is supplied by your municipality, your tariff increase will not take effect in April.

Instead:

  • Municipal tariff changes take effect on 1 July 2026.
  • Municipalities use the April–June window to prepare their budgets.
  • Each municipality then submits its own tariff application to NERSA for approval.

While the final municipal increases often align with Eskom’s direction, they can vary based on each municipality’s financial plans and operational needs.

The rising cost of essential services like electricity is a growing concern for many South African households. But the good news is that with the right knowledge and home efficiency improvements, you can take control of your electricity usage and your budget.

Investing in energy‑saving appliances, solar solutions, smart home devices, and better household habits can help offset tariff increases and unlock long‑term savings.

With electricity tariffs continuing to rise, the need for households to actively manage their energy consumption has become increasingly urgent. A range of tools, insights, and tailored solutions is now available to help South African homeowners reduce usage, lower monthly costs, and build long‑term energy resilience.

Rising tariffs don’t have to derail your household budget with informed planning and smart efficiency choices today, you can set yourself up for meaningful savings well into the future.

Sources:  

Standard Bank

How can I purchase pre-paid electricity?

By making use of one of the following:

  • MidCity Utilities App

  • MidCity Utilities Website

  • Internet Banking

  • Unipin vouchers
  • Unipin vouchers can be purchased at registered retailers, garages and other suppliers.
  • When providing your pre-paid meter number to the cashier, the pre-paid purchase will transfer over to the meter automatically.

  • If you do not provide your meter number to the cashier and you receive the voucher slip, you must follow the steps as set out thereon.

  • Make sure you are using the correct meter number.
  • After registering with MidCity Utilities for pre-paid electricity, our Customer Care Personnel will SMS you your meter number.

  • When you register for the Mobile App or on our website, you will also be able to see your meter number.

  • Clients who also request to receive monthly statements, even though they are on pre-paid, will be able to see their meter number on their monthly statement.

  • Contact our Customer Care Personnel.
  • Log in to either our Mobile App or website.

  • SMS the word Balance (space) meter number to 37823. You will receive an SMS with your meter balance and predicted zero balance date.

  • Use your keypad, if you have one.
  • Yes. A low balance notification will be sent to the registered cell phone number that is loaded onto our system.

  • The low balance notification will be sent 48 hours before the calculated depletion date.

  • The depletion date received on the low balance notification, Mobile App or website is an estimation and depends on a client’s consumption habits and changes.

Mobile App or Website

  • The final step in the process on the Mobile App or website will indicate if the transaction was successful.

  • Transfer of credits to the meter can take approximately 10 minutes after the purchase is completed successfully.

  • On the Mobile App, website or SMS balance enquiry, it can take between 30 minutes to an hour to update the effective current balance after a purchase was made.

Internet Banking

  • Confirmation of transaction is provided by your banking service.

  • You will receive an SMS or email with the value of the token as well as the 20-digit code already loaded on your meter.

  • Purchases through Internet Banking can take approximately 30 minutes to transfer over to the meter.

  • On the Mobile App, website or SMS balance enquiry, it can take between 30 minutes to an hour to update the effective current balance after a purchase was made.

Unipin voucher

  • After following the process reflected on the voucher with your cell phone, you will receive confirmation and notification on your device.

  • Purchases through Unipin vouchers can take approximately 30 minutes to transfer over to the meter.

  • On the Mobile App, website or SMS balance enquiry, it can take between 30 minutes to an hour to update the effective current balance after a purchase was made.