Eskom Imposes Electricity Tariff Hike; Petrol, Diesel Prices Surge

Electricity prices are set to increase this week as Eskom will be implementing its new tariff hikes, ranging between 12.72% and 12.74%, which was approved by the National Energy Regulator of South Africa (NERSA) in December of last year.

Local authority tariff charges for the period of July 1, 2024 to June 30, 2025, will see a 12.72% increase. For Eskom direct customers, excluding the affordability subsidy charge, the tariff increases for the period from April 1, 2024 to March 31, 2025, will be 12.74%.

Whereas, for the Homelight 20A tariff, there will be an increase of 12.74%. However, the affordability subsidy charge will see a substantial increase of 25.24%.

"The average increase applied to the key industrial and urban tariffs will be 13.29% due to the increase in the affordability subsidy charge. The affordability subsidy charge is raised as a subsidy to the Homelight 20A tariff and is determined by NERSA," Eskom said, SA News reported.

It added, "This charge exists due to historically lower Homelight 20A tariff increases and is paid by the non-municipal large industrial and urban tariffs. There are no tariff structural changes for 2024/25, however, Eskom is considering a tariff restructuring submission to NERSA for implementation in 2025/26."

Aside from this, vehicle owners will also feel a pinch as petrol and diesel prices are all set to increase, as per the Central Energy Fund (CEF).

Petrol prices for both 93 ULP & LRP and 95 ULP & LRP have increased by 65 cents and 67 cents, respectively. Diesel with 0.05% sulphur content has seen a three-cent increase while diesel with 0.005% sulphur content decreased by one cent.

In the illuminating paraffin sector, wholesale prices dropped by 29 cents and the single maximum national retail price decreased by 58 cents. Additionally, the maximum retail price for LP Gas decreased by 19 cents.

"The average international product prices for petrol increased, while diesel and illuminating paraffin decreased during the period under review," the CEF said, SA News reported. "The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period."

It added, "The average rand/US dollar exchange rate for the period 1 March 2024 to 26 March 2024 was 18.8689 compared to 19.0186 during the previous period. This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 10.78 c/l, 10.88 c/l and 10.74 c/l respectively."

Finance Minister Enoch Godongwana announced in February that there will be an increase in the Carbon Fuel levy of one cent per liter on petrol and three cent per liter on diesel.