Eskom's restructured electricity tariffs: 'The rich benefit. The poor pay more'

Eskom’s restructured residential electricity tariffs, along with the introduction of new standard electricity rates, has resulted in an average electricity price increase of 12.74% for the 2025/26 financial year, effective from 1 April 2025.

However, the impact on individual customers will vary.

Eskom offers three main categories of residential tariffs:

Homelight 20A and 60A: Designed for low-income households. The Homelight 20A tariff applies to customers with limited capacity and a prepayment meter, while the Homelight 60A tariff is for low-income customers, whether they use a prepayment or credit meter.
Homepower: Aimed at middle- to high-income residential customers.
Homeflex: Targeted at middle- to high-income customers who can adjust their energy usage based on time-of-use pricing, shifting consumption to standard and off-peak periods by selectively using home appliances.

According to Yelland, Eskom’s rationale for the restructuring is to reduce the significant cross-subsidisation between wealthier and poorer households.

Previously, poorer households received substantial subsidies funded by wealthier customers.

With these changes, he says that Eskom aims to level the playing field, ensuring that the price increases are smaller for wealthier households and larger for those with lower incomes.