South Africa’s electricity prices have skyrocketed 900% and keep rising

South Africans have faced a dramatic increase in electricity costs over the past two decades, with electricity prices rising by approximately 900% in 19 years.

The increases have placed enormous pressure on households and businesses, making electricity one of the biggest expenses for many consumers.

Despite improvements in electricity supply and the reduction in load-shedding, consumers are still facing higher power bills, with further price increases expected to keep putting pressure on household budgets.

The electricity crisis has therefore evolved. While South Africa has made progress in stabilising its power supply, the cost of keeping the lights on remains a major challenge.

The scale of the increase becomes clearer when comparing electricity prices with general inflation.

According to figures presented by Electricity and Energy Minister Kgosientsho Ramokgopa in August 2026, electricity tariffs increased by approximately 977% since 2007.

Over the same period, general inflation was approximately 150%.

The increase has been driven by several factors, including:

The OECD has also highlighted how Eskom’s financial difficulties and rising tariffs have contributed to a cycle of declining electricity sales and increasing financial pressure.

The latest approved tariff adjustments mean South Africans will continue paying more for electricity.

The 2026/27 increase took effect on 1 April 2026 for direct Eskom customers, while municipal bulk electricity prices increased by 9.01% from 1 July 2026.

The next 8.83% increase for direct Eskom customers is scheduled for April 2027.

This means households and businesses must continue preparing for higher electricity expenses, even if the country avoids widespread load-shedding.

The government has acknowledged that electricity has become increasingly expensive for households and businesses.

In August 2026, Ramokgopa outlined a revised Electricity Pricing Policy aimed at making electricity pricing more transparent and predictable.

One of the proposals is to introduce a 10-year electricity price forecast through NERSA. This would give businesses and investors greater certainty when planning long-term investments.

Government also wants to address electricity theft, infrastructure losses and the costs that are passed on to customers who pay their bills.

The proposed changes are intended to improve affordability while maintaining the financial sustainability of the electricity sector.

The electricity price increases have consequences beyond monthly household bills.

Businesses that depend heavily on electricity face higher operating expenses, which can affect their profitability, competitiveness and ability to create jobs.

For households, higher electricity costs leave less money available for groceries, transport, housing and other essential expenses.

The growing cost of electricity has also encouraged more South Africans to consider solar panels, batteries and alternative energy sources.

However, these solutions require significant upfront investment and are not affordable for everyone.

After electricity prices increased by nearly 1,000% since 2007, South Africans are still facing further increases. The challenge for government is to make electricity more affordable without undermining the financial sustainability of the country’s power system.

Sources: South African electricity prices increased 900% in 19 years and it is set to continue – Daily Investor

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