CORRECTION: An earlier version of this story incorrectly stated a 12.80% electricity price hike. The correct average increase is 7% for residential and commercial customers in 2025/26. We regret the error and have corrected the information accordingly.
The City of Cape Town’s electricity price hike has kicked in. It appears fuel and gas are not the only utility cost increases you’re faced with this month, as City of Cape Town residents can expect to fork out more for electricity from this month. The City’s approved electricity price hike for the upcoming financial year is on average 7% for residential and commercial customers.
The City’s electricity price hike has kicked in
The good news is that the actual cost per unit for electricity is going down from 1 July 2025 for residents on the Home User Tariff to compensate for the increased service and wires charge.
READ MORE: Pain at the fuel pumps this July for SA motorists
Domestic Tariff users will also pay less per unit on Energy Block 2, and relatively the same on Energy Block 1 from 2024/25 to compensate for the introduction of the service and wires charge.
The good news
Lifeline customers using 600 units in a month will still pay relatively the same in 2025/26 as they did three years ago in 2022/23. Noting also that the latter customers need to stay within the 450-unit monthly average over 12 months to remain on the Lifeline tariff.
TOP TIPS TO HELP REDUCE HOUSEHOLD COSTS
1. In winter, households typically use more electricity due to factors such as space heating and water heating through geysers. The increased winter electricity usage, which coincides with the annual tariff increases that come into effect from 1 July, impacts bills. Use less, and pay less.
2. Buying electricity units in bulk might push a customer into a more expensive tariff category. Buy amounts only as you need them, and keep them under 600 units per month where feasible.
3. Don’t stockpile electricity units now at the current price ahead of the increase from 1 July. This might push customers into a higher price category, over 600 units for June.
4. Switch geysers on for only an hour or two per day. Reduce the geyser temperature to 60 degrees Celsius.
5. Taking a short shower uses five times less electricity and 80% less water than taking a bath.
6. Switch to LED bulbs as they use 90% less energy than incandescent bulbs.
7. Kettle boiling: Boil only the water required or store the boiled water in a flask to keep warm.
8. Households can reduce water costs by reducing their usage.
9. Don’t flush the toilet in a rush. Flush only when necessary, and don’t use the toilet bowl as a dustbin.
10. Although tariffs comprise a fixed and usage component, there is room for savings in the usage component of the tariffs.
The cost of electricity to City-supplied residential customers
‘Overall, the cost of electricity to City-supplied residential customers is going up by a maximum of R109,09 (VAT included) for Home User categories, with Domestic at R70,33 (VAT included). The average increase across all user categories (residential and commercial) is 7,2%, considerably less when compared with the more than 11% national Eskom increase.
READ MORE: Cape Town’s 2025/26 Budget Has Officially Been Passed
The per unit cost for electricity is going down from 1 July 2025 for residents on the Home User Tariff to compensate for the increased service and wires charge. Domestic Tariff users will also pay less per unit on Energy Block 2, and relatively the same on Energy Block 1 from 2024/25 to compensate for the introduction of the service and wires charge.
High-demand winter months
Lifeline customers using 600 units monthly will pay about the same in 2025/26 as they did in 2022/23. They can exceed 450 units during high-demand winter months and still qualify for lifeline rates, provided that their 12-month average stays at or below 450 units.
“Ensuring that we are able to pay for electricity service delivery while at the same time investing in energy security for a future-fit city is vital,” said the City’s Mayoral Committee Member for Energy, Xanthea Limberg.
READ MORE: Cape Town’s electricity tariffs
