Loadshedding May Be Easing — But Why Your Electricity Bill Is Still Rising.

For the first time in years, many South Africans are experiencing a relatively "light" schedule of loadshedding. However, a glance at the monthly municipal or Eskom bill tells a different story: costs are climbing faster than ever. As of March 2026, the disconnect between a more stable grid and a more expensive one has become a major point of frustration.

Here is the breakdown of why your electricity bill is rising even when the lights stay on.

1. The April 2026 "Double-Digit" Reality

While the National Energy Regulator of South Africa (NERSA) initially projected a more modest increase, a High Court redetermination in late 2025 forced a recalculation.

• The Average Hike: Effective 1 April 2026, Eskom direct customers face an average increase of 8.76%.

• The "Hidden" Municipal Hike: If you get your power from a municipality (like City Power or the City of Cape Town), your increase only kicks in on 1 July 2026. Historically, municipal hikes are often several percentage points higher than Eskom’s to cover local maintenance and administrative costs.

2. The Shift to "Fixed Charges"

One of the biggest changes in 2026 is the implementation of the second phase of Eskom’s Retail Tariff Plan (RTP). Eskom is moving away from charging only for the units you use and moving toward higher fixed monthly fees.

Even if you use zero units (for example, if you have solar), you are now paying significantly more just to stay connected to the grid. For a standard Homepower 4 (60-amp) user, the fixed portion of the bill—which includes service, administration, and network capacity charges—has increased by roughly 28% this year.

3. The "Death Spiral" of the Grid

As more middle-to-high-income households install rooftop solar, Eskom sells less electricity. Between January 2025 and January 2026, residual energy demand plunged by over 11%.

To recover the massive costs of running ageing coal plants and servicing its debt, Eskom must raise the price for the remaining customers. This creates a "death spiral":

1. Prices go up.

2. More people move to solar.

3. Eskom loses more revenue.

4. Prices go up again to fill the gap.

4. Recovery of Past "Mistakes"

Your 2026 bill also includes a "repayment" for past financial years. NERSA approved a process to recover R54.7 billion in revenue shortfalls caused by previous calculation errors. The first tranche of R12 billion is being recovered through your current 2026 tariffs, meaning you are effectively paying for Eskom’s past losses today.

What Can You Do?

With the Incline Block Tariff (IBT)—where units got more expensive the more you used—largely being phased out, the strategy has shifted. Saving electricity still helps, but because fixed charges are higher, the "reward" for being energy-efficient is smaller than it used to be.