While there is expected to be some reprieve at the pumps soon, South African businesses and households are preparing for the upcoming municipal electricity tariff increase.

 

The Central Energy Fund (CEF) shows petrol price over-recoveries of between R2.93 (95 Unleaded) and R2.97 (93 Unleaded), while diesel is in the green by between R4.60 (500ppm) and R5.02 (50ppm).

A drop in the fuel price will be warmly welcomed. But that sigh of relief will be short-lived with an upcoming electricity price increase.

Shocking

Eskom’s approved 2026/27 tariffs include an average 8.76% increase for direct Eskom customers, which were implemented from 1 April.

However, the 9.01% municipal electricity tariff increase, taking effect on 1 July, will add to the pressure on South Africans already reeling from the fuel price increase.

According to SolarAfrica CEO David MacDonald, a typical C&I business consuming around 1,000,000 kWh per month could see annual electricity costs rise by between R2.88m and R3.34m over the next year, depending on operating profile.

For many businesses, that equates to an additional R240,000 to R280,000 per month that must be absorbed somewhere within the organisation.

More concerning is that these increases are becoming a recurring feature of the energy landscape rather than a once-off event.

With a further 8.83% increase already proposed for next year, businesses face a future in which electricity costs continue to escalate faster than many other input costs.

This makes long-term planning increasingly difficult, particularly for energy-intensive sectors such as manufacturing, mining, agriculture and logistics.

Start saving

Trevor Brewer, director of Solenco, says South African households and businesses need to treat energy efficiency as a monthly operating discipline rather than a one-off purchase decision.

He offers some advice for saving power.

He says there are ways for businesses and households to make practical changes to save electricity during these financially constricting times.

Brewer says check the appliance wattage, energy ratings, and inverter compatibility on small domestic appliances, commercial appliances, and HVAC systems.

Additionally, he advises South Africans to look for appliances equipped with eco modes, timers, and DC motors, and ensure appliances are appropriately sized for the space or need to avoid unnecessary waste.

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