Why are South Africans facing higher electricity bills despite fewer power cuts?

Nearly three-quarters of South African SMEs say improved electricity reliability boosted their operations.

South Africans are experiencing a strange paradox: while power cuts have significantly diminished, electricity bills are on the rise.

The National Energy Regulator of South Africa (NERSA) has approved substantial electricity tariff increases for both Eskom direct customers and municipal users, leaving many puzzled about the ever-higher bills amidst an era of improved supply.

From April 1, 2026, Eskom direct customers will see an average tariff increase of 8.76%, followed by a 9.01% hike for municipal customers starting July 1, 2026. These increases come despite the nation enjoying its most stable electricity supply in recent memory, prompting consumers to wonder: if the power is more reliable, why are we paying more?

March witnessed a remarkable announcement from Eskom, 300 days without load shedding, with unplanned outages down by 53% year-on-year. The power utility's Energy Availability Factor (EAF) has consistently improved, marking a big turnaround in its operations.