In a move that has sparked concern among consumers, Eskom has announced an average electricity tariff increase of approximately 12%, set to take effect on 1 November 2025. The news comes alongside the power utility’s rollout of mandatory smart meter installations in homes across South Africa, a step that aims to enhance grid management and curtail electricity usage during peak hours.
Yet, these changes seem to carry a heavy burden for households and businesses already feeling the pinch of rising costs. However, many experts and consumers remain sceptical about the effectiveness of these measures in delivering real relief.
Neil Roets, CEO of Debt Rescue, has been vocal about the repercussions these new regulations may have on ordinary citizens. “The power that Eskom now holds to cut off electricity during peak usage times is disturbing,” he stated, underlining the potential for severe disruptions in daily life, especially for vulnerable populations.
Roets argued these measures do not prioritise the comfort and convenience of citizens and could exacerbate existing hardships.
Furthermore, the new smart meter technology is designed to allow Eskom to disconnect users for non-payment, theoretically shielding compliant consumers from the costs incurred by those who do not pay their bills. While some see the necessity of stringent measures to balance demand, others remain unconvinced that these new policies will prevent further power crises or restore stability to the fluctuating energy landscape.
Additionally, with inflation pushing food prices skyward and the repo rate remaining at a daunting 7%, the affordability crisis continues to deepen. The intersection of elevated electricity rates with rising living costs leaves many South Africans with little choice but to resort to credit options just to make it through the end of the year.
Roets cautioned that those facing overwhelming debt should consult with registered debt counsellors to navigate their financial challenges.