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The cost of prepaid electricity in South Africa after the 2024 price hikes

30 Jan 2024
Author: Neil Helps

The cost of prepaid electricity in South Africa after the 2024 price hikes

South Africans using prepaid electricity should expect a significant increase in their monthly bill from April this year.

In 2023/24, NERSA (National Energy Regulator) approved a 18.65% price increase for Eskom. Starting in April 2024, there will be a 12.74% increase.

This comes despite Eskom’s continuous failure to provide a reliable electricity supply. Experts warn that load shedding will continue due to the poor performance of coal-fired power stations. However, it is expected to be less severe in 2024 compared to 2023.

The cost of electricity in South Africa is predicted to increase from about R1.84 per kWh to around R2.07 per kWh. The average price mentioned is for the whole country. Prices may vary in different areas, and people who use more electricity will pay more.

Electricity prices have increased by 450% since load shedding began in 2008, much higher than the 98% inflation rate. We expect this figure to balloon further with the upcoming increase.

How much South Africans will pay is dependent on what kind of electricity customer they are. Eskom has published its fee adjustments for 2023/24.

In 2023/24, the average Eskom customer in urban Gauteng experienced an 18.68% increase in their monthly power bill. This increase was seen by those using 200 kWh per month. The bill went up from R590 to R700.

With the 12.74% increase, these power users can expect to spend R790 for 200 kWh per month from April this year.

City Tariff Increase 2022/23 % Tariff Increase 2023/24 %

Cape Town R610.08 17.6% R701.60 12.74%

Joburg R419.45 14.97% R482.34 12.74%

eThekwini R599.22 18.49% R710.02 10.11%

Municipalities

Municipalities usually charge customers different rates, usually in July, but Eskom's increases usually influence these rates.

Cape Town’s electricity prices increased by 17.6% on 1 July 2023. Should prices rise by Eskom’s upcoming tariff increase, it will be just over R1 more expensive (R790.98).

Johannesburg's City Power has a block system for electricity. Block 1 (0-350kWh) is the cheapest, but the price increases as you use more power. When using block 1, residents in Johannesburg pay over R200 less than their Mother City counterparts.

eThekwini’s 18.49% increase last year was incredibly close to Eskom’s. However, unlike Johannesburg and Cape Town, the KZN metro already has pencilled in an increase for 2024/25 of 10.11%. However, the R789.88 for 200 kWh for eThekwini is in line with Eskom’s upcoming price increase.

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