Bad News for Residents As Municipal Electricity Hikes Loom for July in Major Metros

• Municipal electricity tariff hikes approved by Nersa take effect on 1 July 2025, affecting millions of South African households
• Buffalo City faces the steepest increase at 14%, while Cape Town receives the lowest hike at 7.5% nationally
• Energy experts recommend targeting geysers and exploring solar alternatives to buffer the financial blow

South African consumers are facing yet another financial blow as municipal electricity tariff increases take effect on 1 July. Following the National Energy Regulator of South Africa’s (Nersa) approval of rate hikes across 176 distributors, millions of households will find less breathing room in their monthly budgets.

This impending squeeze comes directly on the heels of Eskom’s own direct-customer hike on 1 April. Because roughly two-thirds of South Africans buy their electricity straight from local municipalities rather than directly from Eskom, the July adjustment is where the real economic pinch will be felt for most of the country.

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How much each municipality will increase tariffs

The increases are not uniform across the country. The City of Cape Town will implement the lowest hike nationally at 7.5%, while major metros including Johannesburg, Tshwane, eThekwini, Mangaung, and Nelson Mandela Bay will see increases ranging from 8.63% to 10.09%. Ekurhuleni faces a 12.7% rise, and Buffalo City carries the steepest approved increase in the country at 14%.

How consumers can reduce their electricity bill

While consumers cannot reverse municipal pricing decisions, energy experts say targeted action at home can meaningfully reduce the impact. Marc du Plessis, Executive Head of Standard Bank's LookSee home efficiency platform, told The Citizen the most effective approach is to focus on the appliances responsible for the largest share of household electricity consumption.

The geyser is the single biggest driver of home electricity usage, accounting for between 30% and 40% of a typical monthly bill. The figure can climb to 50% during winter. Simple interventions such as setting the thermostat to 60°C, fitting a geyser blanket, or installing a smart timer to avoid usage during peak hours can produce noticeable savings.

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Experts also recommend auditing hidden energy waste from appliances drawing power in standby mode, using free tracking tools to benchmark a home's overall efficiency and identify unnecessary drains on consumption.

For those with the financial means, solar alternatives are a viable option. Solar geysers that integrate photovoltaic panels with an existing water tank can significantly cut bills, while solar rental agreements allow households to avoid large upfront installation costs, replacing a rising and unpredictable utility bill with a fixed monthly payment.

3 Other energy-related stories

• Briefly News reported that Eskom officially launched its dedicated renewable company, aiming to fast-track clean energy solutions for large industrial businesses.
• As winter temperatures drop, experts shared the number one costly mistake South Africans make with their geysers.
• An energy expert revealed whether switching to an electric blanket can really save your wallet from pricey space heaters this season.
• Eskom launches formal proceedings to cut electricity to some Johannesburg supply points over a staggering R5.2 billion arrears crisis.

Source: Briefly News