Newsroom Tariffs
Electricity price increases for 2026/27: what they mean for your business
Eskom's direct customers pay 8.76% more from 1 April 2026. Municipal bulk prices go up 9.01% from 1 July 2026. On a R100,000 monthly bill, that is roughly R9,000 more every month, before next year's increase lands on top.
How much did electricity go up in 2026?
For Eskom's direct customers, 8.76% on average from 1 April 2026. For municipalities buying from Eskom, 9.01% from 1 July 2026 to 30 June 2027 (source).
Both are higher than first planned. NERSA raised them after finding a R54.7 billion error in how it had worked out Eskom's asset base (source).
Why are Eskom and municipal increases different?
Because they start on different dates. Eskom changes its prices in April. Municipalities have to change theirs in July, in line with their financial year, so the increase is worked out over a shorter period and comes out a little higher (source).
If you buy from the city, your final tariff also includes the city's own costs. The big metros set their 2026/27 tariffs in line with the 9.01% (source).
What does a 9% increase cost my business?
Take a site that pays R100,000 a month for power. At 9% a year, that bill looks like this:
| Year | Monthly bill | Year total |
|---|---|---|
| 1 | R100,000 | R1.20 million |
| 2 | R109,000 | R1.31 million |
| 3 | R118,810 | R1.43 million |
| 4 | R129,503 | R1.55 million |
| 5 | R141,158 | R1.69 million |
Over five years you pay about R7.18 million, which is R1.18 million more than if the price had stayed where it is today. None of that extra buys you anything new.
Last year was worse: Eskom's direct increase in April 2025 was 12.74% (source). 9% is not a worst case.
How can a business protect itself from future increases?
By fixing the price of as much of its power as it can. You cannot stop the grid price rising, but you can buy less of it.
- Use less at peak times. Shift and spread heavy load so less of it is billed at the top rate. See 5 ways to cut your bill.
- Make your own daytime power. Every unit your own solar makes is a unit you do not buy from the grid.
- Lock in a lower, slower-rising rate. With a solar power purchase agreement, the rate for that power is written into the contract. In August 2026, Cape Town signed deals like this at 19% to 21% below Eskom, with increases linked to inflation instead of Eskom's hikes (source).
What should I do now?
Pull your last twelve months of bills. Look at the total, the demand charge (kVA) and how much of your use falls in daylight hours. That tells you how exposed you are.
Or send them to us. A free site assessment turns your bills into a price you can compare, and you sign nothing.
