New acts and regulations for 2024-2025 are to be promulgated to coincide with the present changes in the energy landscape of South Africa. So, while upgrading the electricity sector, I want competition to come in, reliability to be enhanced, and customers to be protected. Changes specifically important for the households (particularly solar installations and low income) to watch out for.
More Competition & New Oversight
The Electricity Regulation Amendment Act (ERA), assented by President Cyril Ramaphosa in August 2024, updates the framework laid out in the Electricity Regulation Act of 2006. Among these changes are: opening the electricity market to more IPPs, small generators, backup power providers, renewables, thus lessening the dependence of Eskom on generation; – Another big-ticket change is the creation of a Transmission System Operator, TSO, as an independent entity. It activates enhancement of. punishments for destruction of electrical infrastructure, theft, or sabotage, and unlawful interference. It should inform households that they can be fined or jailed if someone interferes with transmission or distribution infrastructure.
TARIFF REFORMS AND PRICING
In April 2025, tariff hikes to the tune of about 12.74% were applied for direct customers of Eskom. The increments are a little on the lower side for bulk-buying municipalities. Some changes were effected in the tariff structure for residential use:
- The old IBT method seems to have been eliminated for some classes. For instance, after 350kWh of consumption, “Homelight” residential consumers will not be charged a higher rate-the same rate in rand per kilowatt-hour now applies across all consumption.
- It is also able to increasingly ‘unbundle’ the energy-charge, capacity/generation-charge, network/use of infrastructure-charge, and retail/service/administrative-charge for separate billing.
New provisions will be imposed for the registration of systems on houses fitted with rooftop solar or any other type of small generation: most likely involving smart metering and fixed monthly or capacity-based charges irrespective
Effects on Low-Income & Solar-Powered Households
In some ways, low-consumption households benefit: for example, those in the “Homelight” bracket are exempt from the steep jump in rates beyond 350 kWh. On the other hand, households employing solar technology may face increased fixed or capacity charges that could shrink some of the savings solar was meant to afford. Also, being in compliance with this means additional costs and administrative headaches. There are still packages for free or subsidized basic electricity, but some strong pressures exist: increasing costs might make it increasingly difficult for municipalities or government subsidies to be sustained. Households depending on indigent or free basic service grants would do well to follow any announcements coming out of their municipalities.
Licenses, Safety & Access: Rules & Regulations
The Act facilitates permits for small production or back generation. Generally, small solar, batteries, or alternate systems installed in a household do not require generation licenses; rather, they need to only be registered and to follow safety standards. Access to the transmission and distribution grid shall be transparent and non-discriminatory: in the dispatching and balancing, the law requires fair treatment of the various generators (including IPPs, renewables, and households) except for objective causes. With the utmost enforcement against damages, theft, or tampering with any grid infrastructure, fines of a few million rands could be payable, or, for serious cases, imprisonment. Households can even be held liable if doing anything that may at least endanger even an infrastructure unknowingly.
What Households Should Do to Get Ready
Go and review your tariff category: find out whether you fall under Homelight, Homepower, or any other neighboring category, and find out how your tariff might have changed. Work out your estimated bill under this newly revised tariff structure. For anything solar or backup generation, check out whether registration is required, the installation of the smart meter, interconnection rules, whether fixed or capacity charges are expected. Do not miss information coming from your municipality and Eskom: Local municipalities or utilities usually inform customers of any such changes, especially concerning prepaid meters, billing, and fixed charges. Make your budgets based on an increase in fixed charges. Whether you’re still a low-user or not, you might yet pay more in terms of capacity, service, or fixed infrastructure costs.
also read: SASSA October 2025 Payment Dates: Grant Amounts, Eligibility & Schedule