The 2025 electricity pricing overhaul is the most significant structural change Eskom has introduced in more than a decade. While most headlines have focused on the average increase of 12.74%, the real impact lies in how the new tariff structure fundamentally alters the cost mechanics of energy use in South Africa.

These changes have already affected Eskom’s direct customers. The remaining customers, including those billed through local authorities, are now beginning to feel the impact.
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Whether you have already seen the effect on your bill or are just weeks away from it, understanding what has changed is critical to managing your electricity spend in 2025 and beyond.

What’s Changing in 2025?

1. Legacy Charge Introduced (c/kWh)

A new charge per unit of electricity consumed, called the Legacy Charge, now applies across all consumption periods. It increases the cost of every kilowatt-hour used, regardless of when or how it is consumed.

2. Generation Capacity Charge (R/kVA/month)

This new monthly charge is based on your highest recorded peak demand (kVA) over a 12-month period. Once established, that value is used to calculate a charge that applies every month, regardless of how much energy you actually use in each billing cycle. A single instance of high demand, even if brief, can increase your electricity bill for the entire year.

3. Revised Time-of-Use (TOU) Periods

Eskom has updated the time blocks that define peak, standard and off-peak periods. As a result, operating schedules that previously avoided peak tariffs may now fall into more expensive billing windows unless adjusted.  Structural changes have altered peak, standard, and off-peak hours for Time-of-Use (TOU) tariffs as follows:

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4. Tariff Increases and Upstream Cost Adjustments

Eskom direct customers will experience a 12.74% increase. For customers billed through municipalities, Eskom’s bulk supply tariff to municipalities has increased by 11.32%. These increases, combined with structural changes, significantly raise the baseline cost of electricity.

What This Means for Your Business and Strategic Decision-Makers

The 2025 tariff changes demand more than technical adjustments. They require strategic oversight to ensure your business avoids unnecessary exposure and takes full control of energy-related costs.

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Areas that deserve attention:

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• Reassess your current tariff to ensure it remains cost-effective under the new structure.
  
  
• Review and adjust operational schedules to align with revised Time-of-Use periods.
  
  
• Monitor and control peak demand, as a single event can impact costs for the entire year.
  
  
• Verify billing accuracy across all line items to catch errors early and prevent long-term overcharges.
  
  
• Measure and track high-impact equipment or systems, enabling targeted efficiency and cost control.

Managing electricity under the new structure is no longer just about consumption. It requires clarity on costs, alignment with operational realities, and constant supervision to maintain control.

Contact Us

For assistance with a tariff analysis or to schedule a demo on the Augos platform, please email our team on support@augos.io.

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