Solar power users will take a hit if Eskom's tariff change application succeeds

Eskom has been passing on the burden of its financial challenges to consumers with huge tariff increases over the last few years.

For 2025, the power utility wants to hike the price of electricity by over 30%.

It's also seeking changes to the Incline Block Tariffs (IBT), through which the first 'block' of electricity purchased is at the lowest price.

This currently sees households charged less for the first 600 kilowatt hours they use, which helps protect poorer households against soaring prices.

Eskom's argument is that wealthier clients are now using less of its electricity because they have access to alternative sources of power, like solar, and are being charged at a rate that is too low.

Stephen Grootes gets input from energy and financial expert Ruse Moleshe.

She notes that this is Eskom's third attempt to change the tariff structure, after two previous applications to Nersa were unsuccessful.

"Eskom argues that the IBT gives advantages to those affluent consumers that are now using relatively less power where they supplement with solar. They're saying these clients are backing up using Eskom infrastructure, and that should be taken into account."

Ruse Moleshe, Energy Expert

While Eskom do have strong arguments to a certain extent from a technical perspective, they also know that consumers are struggling are struggling, she says.

"Consumers are facing a 34% increase in terms of the tariff, which is not sustainable - so this is also not going to be helpful."

"Eskom probably need to find another mechanism to deal with the solar systems and the fact that the capacity charges aren't being implemented there."

Ruse Moleshe, Energy Expert

To hear more from Moleshe, listen to the interview audio at the top of the article