How Eskom's tariff increase will affect electricity costs for Cape Town residents
Cape Town households face higher electricity costs as new Eskom tariffs take effect from April and July.
Image: File
Cape Town residents are set to pay more for electricity after Eskom confirmed it will implement a National Energy Regulator of South Africa-approved tariff increase for the 2026/27 financial year.
From April 1, customers supplied directly by Eskom will see an average increase of 8.76%, while municipal customers, including those in Cape Town, are expected to face average increases of 9.01% from July 1, in line with municipal financial cycles.
The adjustment follows NERSA’s decision on March 5, which approved increases lower than those typically applied for by Eskom, reflecting an attempt to balance affordability concerns with the utility’s financial sustainability.
Eskom group chief financial officer Calib Cassim said the utility was working to keep tariff increases “reasonable” while maintaining operations and infrastructure.
“We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers. Achieving this depends on disciplined financial management and finding smarter, more efficient ways of operating,” Cassim said.
Eskom said the increase is necessary to cover the cost of generating, transmitting and distributing electricity, while enabling continued investment in critical infrastructure.
The latest adjustment continues a pattern of annual electricity tariff increases that have often outpaced inflation, placing pressure on households and businesses already facing rising living costs.
GOOD Party councillor and founder of Stop CoCT Sandra Dickson said the increases would place additional strain on residents already under financial pressure.
“As a Cape Town ratepayer and councillor for the GOOD Party, I find the above-inflation electricity tariff increases another hard blow for consumers,” she said.
“Most users, including low-income lifeline users and pensioners, could face an additional R200 to R300 on monthly bills for basic electricity needs such as lighting and cooking.”
Dickson said broader cost pressures, including rising food and fuel prices, were compounding the impact.
“Eskom’s gains, including an improved energy availability factor and a period without load shedding, show progress after years of outages. However, these tariff hikes are not warranted when the utility is showing signs of financial improvement. Ratepayers should not be left to carry the burden of past mismanagement and regulatory failures,” she said.
She called on the City of Cape Town to prioritise affordability when implementing its own tariffs, including expanding rebates and free basic electricity for vulnerable households.
Bouwe van der Eems, vice chair of the Cape Town Collective Ratepayers’ Association, said the cumulative impact of rising costs is becoming harder for residents to absorb.
“The increases will place further strain on Cape Town residents who are already under financial pressure. Electricity costs are rising on top of steadily increasing municipal charges, particularly fixed water, sanitation and cleaning fees linked to property values,” he said.
He noted that the ongoing property revaluation process could further affect household costs.
“While Eskom’s operational performance has improved in recent months, concerns remain around underlying cost drivers and long-term sustainability. Regardless of the justification, consumers ultimately carry the burden, which makes transparency and cost control essential,” he said.
Van der Eems said the increase highlights structural constraints facing municipalities and called for greater flexibility to manage costs.
He also called for further support for alternative energy.
“The City has made progress in enabling small-scale embedded generation, but more can be done. Reducing the cost of grid connection would allow more households to feed electricity back into the grid, helping to reduce reliance on Eskom while offering some financial relief,” he said.
In Cape Town, most residents purchase electricity through the municipality, meaning the impact of Eskom’s bulk increase will only be felt later in the year once the City finalises and implements its own tariffs. Municipal pricing structures and service charges can also affect the final cost to consumers.
According to Eskom, the energy availability factor has reached 65.85% year-to-date, with the generation fleet exceeding 70% availability on multiple occasions.
Eskom said subsidised tariffs will remain in place for low-income and rural customers, and that it remains committed to improving performance and maintaining a stable electricity supply.