Eskom’s 8,83% Electricity Increase For 2027: What It Could Mean For Your Bill In Gauteng

South African households could pay about 8,83% more for electricity from April 2027, another hike on top of three years of steep rises.

Eskom told Parliament’s standing committee on appropriations on Tuesday, 13 October, that it plans to raise prices by an average of 8,83% for customers it supplies directly and 8,84% for municipalities. The National Energy Regulator of South Africa (NERSA) still has to finalise how the increase will be applied across tariffs, with a decision expected in late November.

For Gauteng residents, the impact depends on who supplies your electricity, which tariff you are on and how much you use. This guide explains the increase, shows what it could add to a typical bill and lists practical ways to prepare.

What Is The 8,83% Electricity Increase?

The 8,83% figure is the average price increase for Eskom’s direct customers in the 2027/28 financial year. The 8,84% figure applies to the bulk electricity Eskom sells to municipalities, which then resell it to households and businesses.

The percentage is not new. When NERSA first approved Eskom’s multi-year price path in January 2025, it allowed increases of 12,74% for 2025/26, 5,36% for 2026/27 and 6,19% for 2027/28.

In February 2026, NERSA admitted it had made errors when calculating Eskom’s tariffs. After a high court ordered a fresh decision, the regulator raised the 2026/27 increase to 8,76% and the 2027/28 increase to 8,83%. The correction relates to about R54,7 billion that Eskom is allowed to recover through tariffs over three financial years.

NERSA is not reopening how much revenue Eskom may collect. It is now deciding how that revenue is spread across the different tariffs households and businesses pay, through a process known as the Eskom Retail Tariff and Structural Adjustment.

When Will The Increase Take Effect?

If NERSA approves the tariff structure as expected, the increase will apply on two dates:

• 1 April 2027: Customers who buy electricity directly from Eskom, including many households in Soweto and other Eskom-supplied areas.
• 1 July 2027: Municipalities pay Eskom 8,84% more for bulk electricity. Municipal customers in Johannesburg, Tshwane, Ekurhuleni and other councils will see their own increases from this date.

Municipal increases are not automatically the same as Eskom’s. Each municipality sets its own tariffs, which NERSA must approve. In July 2026, for example, municipalities faced a 9,01% rise in bulk costs, while Johannesburg’s City Power increased its tariffs by 8,63%.

ALSO READ: Electricity Tariffs Increase From 1 July: What Gauteng Residents Will Pay

What An 8,83% Increase Could Mean For Your Bill

The simplest way to estimate the impact is to apply 8,83% to what you currently spend on electricity each month. The figures below are examples only. Your actual bill will depend on your supplier, tariff, fixed charges and usage.

What it means for prepaid electricity

For prepaid users, the increase shows up as fewer units for the same money. If prices rise by 8,83%, the same rand amount buys roughly 8,1% fewer kilowatt-hours (kWh).

A household that spends R1 000 a month on prepaid electricity would need to spend about R1 088 to buy the same number of units after the increase.

The average unit price

According to figures reported by IOL, Eskom’s average price would rise from 240,28c to 261,50c per kWh, an increase of 21,22c. This is an average across all customer types, so the price on your own tariff may be higher or lower.

Fixed Charges Could Rise Faster Than The Average

The 8,83% figure is an average, and some parts of a bill could rise much faster. NERSA’s consultation paper on the 2027/28 tariffs, as reported by MyBroadband, shows that Eskom is phasing in higher fixed charges for its Homepower and Homeflex residential tariffs.

These fixed charges are currently at two thirds of their final level and are due to reach the full amount in 2027/28. That means:

Homepower 4 is Eskom’s most popular plan in this group. A customer on it would pay about R670 a month in fixed charges before using a single unit of electricity. To keep the overall increase in line with the average, Eskom lowers the per-unit energy rate, so households that use less electricity carry more of the increase.

Most Gauteng households on prepaid Homelight tariffs or buying from their municipality do not pay these Eskom fixed charges, but many municipalities have their own. City Power, for instance, charges credit customers a R70 monthly service charge and a R140 network capacity charge, from which registered indigent households are exempt.

What It Means For Gauteng Households

Gauteng has a mix of Eskom-supplied and municipal-supplied areas, so the impact will differ across the province.

Johannesburg: City Power’s 8,63% increase took effect on 1 July 2026, with residential prices on its inclining block tariff ranging from about R3,34 to R4,37 per kWh including VAT. The 2027/28 adjustment will follow on 1 July 2027 once NERSA approves the city’s application.

Tshwane and Ekurhuleni: Both metros apply their NERSA-approved increases from 1 July each year. Residents should check the 2027/28 tariff schedules when the councils publish their draft budgets early next year.

Eskom-supplied areas: Households in areas such as Soweto, and other homes that buy directly from Eskom, would see the increase earlier, from 1 April 2027.

Help for low-income households

Qualifying indigent households can receive Free Basic Electricity, set nationally at 50 kWh a month. In Johannesburg, City Power gives registered indigent households 50 kWh or 120 kWh free each month, depending on household size and income, for households earning R7 800 or less per month.

If you think you qualify, register on your municipality’s indigent register. Registration can also exempt you from certain fixed charges.

Why Electricity Prices Keep Rising

Electricity has become much more expensive in a short time. Taking the Eskom direct increases of 12,74% in 2025/26, 8,76% in 2026/27 and 8,83% in 2027/28 together, prices would be about 33% higher by April 2027 than they were in March 2025.

Several factors are behind the increases:

• The NERSA correction: The R54,7 billion error in calculating Eskom’s regulatory asset base is being recovered over three years.
• Eskom’s costs: Running and maintaining power stations, buying fuel and repaying debt all feed into the revenue Eskom is allowed to collect.
• Municipal debt: Municipalities owed Eskom R122,5 billion as of August 2026. Several defaulting metros have entered multi-year payment arrangements.

Eskom has, however, improved reliability. During Tuesday’s briefing, committee chairperson Mmusi Maimane commended the utility for reducing load shedding and improving stability.

Who Is Pushing Back?

The proposed increase has drawn criticism from Parliament, ratepayer groups and civil society.

During the parliamentary briefing, MPs questioned the increases, arguing they conflict with government’s commitment to fighting poverty and unemployment. “Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity,” Maimane said. “We therefore need decisions that balance financial sustainability with households’ ability to pay.”

Maimane also supported paying the indigent electricity subsidy directly to Eskom, which he said would cut administrative costs and strengthen revenue collection.

Ratepayer and civic associations have lodged formal objections with NERSA. The Electricity for All campaign has asked NERSA to reject the increases and raise Free Basic Electricity from 50 kWh to 350 kWh a month. It also wants qualifying households enrolled automatically and fixed charges capped.

“Families are already making difficult choices between food and keeping the lights on,” said Alia Kajee, senior campaigner at 350.org and part of the campaign.

What Happens Next?

Written comments on NERSA’s consultation paper closed on 2 October 2026, and a public hearing followed on 8 October. NERSA is expected to announce its decision on the 2027/28 retail tariffs on 26 November 2026.

After that, municipalities will table their 2027/28 budgets and tariff proposals, usually between March and May, for NERSA approval before 1 July 2027. Watch for:

• NERSA’s final decision on fixed charges and tariff structures
• Your municipality’s draft tariff schedule and public comment period
• Any changes to Free Basic Electricity or indigent support

How To Prepare And Cut Your Electricity Costs

You can’t control the tariff, but you can control how much electricity you use and make sure you are on the right plan.

• Know your supplier and tariff. Check your bill or prepaid receipt to see whether you buy from Eskom or your municipality, and which tariff you are on.
• Track your usage. Compare your kWh use over several months to spot where costs are creeping up.
• Tackle the geyser. Water heating is usually one of the biggest costs in a home. A geyser blanket, a timer and a lower thermostat setting can all help.
• Switch off at the wall. Appliances on standby still draw power.
• Use efficient lighting and appliances. LED bulbs and energy-efficient appliances use less electricity over time.
• Consider solar water heating or rooftop solar. These need an upfront investment, so compare quotes and check your municipality’s rules for registering systems.
• Budget for the increase now. Setting aside a small amount each month before April or July 2027 will soften the impact.

Remember that cutting your usage by 10% won’t necessarily cut your bill by 10%, because fixed charges stay the same no matter how much you use.

Frequently Asked Questions

Has The 8,83% Electricity Increase Been Approved?

NERSA set the 8,83% average when it revised Eskom’s multi-year price determination in February 2026. It is now finalising how the increase is applied across tariffs, with a decision expected on 26 November 2026.

When Will Electricity Prices Go Up In 2027?

Eskom direct customers would pay more from 1 April 2027. Municipal customers would see increases from 1 July 2027, once each municipality’s tariffs are approved.

Will Municipal Customers Pay Exactly 8,84% More?

Not necessarily. The 8,84% is the increase in what municipalities pay Eskom. Each municipality sets its own tariff, which can be higher or lower once NERSA approves it.

How Much More Will I Pay For Prepaid Electricity?

If prices rise by 8,83%, the same amount of money buys about 8,1% fewer units. A household spending R1 000 a month would need about R1 088 to buy the same amount of electricity.

Can I Get Free Electricity In Gauteng?

Indigent households can register for Free Basic Electricity through their municipality. City Power provides 50 kWh or 120 kWh a month to qualifying households earning R7 800 or less a month.

For more on the parliamentary briefing, read the Mail & Guardian report.