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Electricity Tariffs

Electricity tariffs are the prices charged by utilities and power generators to consumers for electrical energy supplied, typically expressed in cents per kilowatt-hour (kWh). These tariffs form the primary revenue mechanism for electricity suppliers and cover the costs of generation, transmission, distribution, maintenance and capital investment in power infrastructure. In most African markets, tariffs are set or approved by independent energy regulators to balance the financial sustainability of utilities against affordability for households and competitiveness for industry. Tariff structures vary widely, ranging from flat rates to time-of-use pricing, seasonal adjustments and differentiated rates for residential, commercial, industrial and agricultural users. Many African countries have historically subsidised electricity prices, leading to tariffs that do not reflect the full cost of supply, which in turn has contributed to underinvestment, operational deficits and reliability challenges at state-owned utilities. Tariff increases are politically sensitive, often sparking public opposition and concerns about their impact on inflation, household budgets and industrial competitiveness. Regulators typically conduct multi-year price determination processes, assessing utilities' revenue requirements, efficiency benchmarks and the macroeconomic environment before approving adjustments. The shift towards cost-reflective tariffs, renewable energy integration and independent power producers has added complexity to tariff design, requiring mechanisms such as feed-in tariffs, capacity charges and wheeling fees. Electricity tariffs remain a central issue in energy policy across the continent, directly affecting economic growth, energy access and the financial viability of power sectors.

Latest Articles in 60 Seconds

Winter tariffs and energy shock drive mining cost pressures

The Minerals Council South Africa reports that its Mining Composite Input Cost Index rose to 5.3% year-on-year in May, up from 2.8% in April, driven by coke, refined petroleum products and chemicals amid the Middle East conflict's effect on oil prices. The council warns that winter electricity tariffs, in effect from mid-June, typically lift electricity costs by 20% to 30% through to September, with municipal water tariffs also rising from July, keeping cost pressures elevated even as global energy prices retreat after the ceasefire.

Transalloys halts smelting, blames unsustainable electricity tariffs

Manganese ferroalloys producer Transalloys fully stopped production at its Mpumalanga smelter on July 1, placing about 600 permanent jobs and an estimated 7 000 downstream livelihoods at risk. CEO Konstantin Sadovnik says survival depends on Eskom, Nersa and the Department of Electricity and Energy agreeing a sustainable tariff solution, warning South Africa risks losing its last manganese smelter.

Nersa reviews fixed charges and tariff restructuring impacts

Nersa has published a draft market inquiry report on fixed charges and Eskom's unbundled generation, legacy and variable energy charges. It finds cost-reflective tariff restructuring affects customer categories unevenly, with agricultural customers hit hardest under time-of-use tariffs.

Electricity Tariffs Updates


Mining cost pressures accelerated in May as energy shock took hold
Mining cost pressures accelerated in May as energy shock took hold
3rd July 2026 By: Sabrina Jardim

Minerals Council South Africa has reported that mining input cost pressures accelerated sharply in May, reflecting the transmission of higher global energy prices into the South African economy... 


A generic image of smelter operations
Transalloys warns of permanent closure of South Africa’s last manganese smelter
2nd July 2026 By: Lumkile Nkomfe

Manganese ferroalloys producer Transalloys has fully stopped its ferroalloys production in Mpumalanga on July 1, with no indication of when operations may resume. The company highlights that the... 


An image of a Nersa logo and mic
Nersa publishes draft market inquiry report on fixed, generation capacity charges
26th June 2026 By: Tasneem Bulbulia

The National Energy Regulator of South Africa (Nersa) has published the draft market inquiry report on the impact of fixed charges levied by electricity distributors and State-owned entity Eskom’s... 


Nersa asks court to extend deadline for final 14 municipal tariff applications
13th May 2026 By: Schalk Burger

The National Energy Regulator of South Africa (Nersa), on May 13, said it would approach the High Court to seek an extension of the May 11 deadline imposed by the court on February 20 to finalise... 


Nersa publishes new municipal tariff application deadlines
13th March 2026 By: Schalk Burger

The National Energy Regulator of South Africa (Nersa) has published new timelines for the submission and approval of municipal electricity tariff applications for the 2026/27 financial year. For... 


Nersa extends deadline for comments on Ekurhuleni, Msunduzi, Madibeng electricity tariff applications
12th March 2026 By: Schalk Burger

The National Energy Regulator of South Africa (Nersa) has extended the deadline for submitting written comments on the electricity tariff applications by the Ekurhuleni metropolitan municipality,... 


Minerals Council economist André Lourens
Minerals Council suggests tariff methodology, costs as next focus for Eskom
6th March 2026 By: Marleny Arnoldi

While the Minerals Council South Africa lauds Eskom for having maintained an average energy availability factor of 68.5% through February, which is above the 68% target set out in the Integrated... 


Reducing unpaid Eskom debt by municipalities and local authorities
Reducing unpaid Eskom debt by municipalities and local authorities
13th February 2026

By: Charles Stride After the last election I gave a talk titled “The unexploded, unemployment time bomb” and one of the many reasons therefor, is the continued escalation of Eskom tariff’s, set by... 


Reserve Bank Governor Lesetja Kganyago
Reserve Bank keeps repo rate steady in split decision
29th January 2026 By: Reuters

South Africa's central bank kept its main lending rate unchanged at 6.75% on Thursday, saying it wanted to see inflation expectations fall further and citing potential price pressures including... 


Nersa invites comments on MYPD6 redetermination consultation paper
7th January 2026 By: Schalk Burger

The National Energy Regulator of South Africa (Nersa) invites members of the public to submit comments on its consultation paper on 'Nersa Redetermination of Eskom's Sixth Multi-Year Price... 


BURNING ISSUE: As with efforts to salvage the integrated Newcastle steel mill, policy and electricity-tariff interventions aimed at sustaining and reviving the country’s ferrochrome smelters are also facing headwinds. It is widely accepted that the 900%-plus increase in electricity tariffs since 2008 is the reason why many smelters are uncompetitive and unprofitable. However, a subsidy in this area will have serious price consequences for other electricity users, including industrial firms facing similar competitiveness pressures.
BURNING ISSUE
12th December 2025

As with efforts to salvage the integrated Newcastle steel mill, policy and electricity-tariff interventions aimed at sustaining and reviving the country’s ferrochrome smelters are also facing... 


Nersa to hold workshop on tariff application process for municipalities on Dec 5
3rd December 2025 By: Schalk Burger

The National Energy Regulator of South Africa (Nersa) will host a workshop with municipalities on the tariff application process for the 2026/27 financial year from 09:00 to 13:00 on December 5.... 


High electricity prices to continue putting pressure on mining, smelting, says Minerals Council
13th November 2025 By: Schalk Burger

The improvement in the performance of State-owned Eskom’s ability to supply electricity and the uptick in Transnet’s operational performance bode well for mining, but the sector faces the threat of... 


An image of the Eskom logo
Nersa to hold hearing on Eskom’s generator losses charge amendment application
24th October 2025 By: Tasneem Bulbulia

The National Energy Regulator of South Africa (Nersa) has published a consultation paper on State-owned utility Eskom’s application to amend the losses charge calculation methodology for embedded... 


Public hearings are scheduled for November 17
Nersa launches market inquiry into impact of fixed charges on electricity customers
17th October 2025 By: Terence Creamer

The National Energy Regulator of South Africa (Nersa) has launched a market inquiry into the impact of fixed charges being levied by Eskom and municipal electricity distributors, which it claims... 


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