Eskom Plans New Fees for Solar Power Users Connected to South Africa’s Grid
Eskom has announced plans to implement charges for solar power users in South Africa who remain connected to the national grid. This proposal is part of a series of structural changes to its retail tariffs, which Eskom says are essential for long-term sustainability.
The National Energy Regulator of South Africa (Nersa) opened Eskom’s retail tariff adjustment application for public comment on 7 November 2024. According to Eskom, solar users connected to the grid, known as “Eskom Battery” customers, will need to pay for network access when they use grid electricity as backup during cloudy days, nights, and peak hours. However, customers who have fully disconnected from Eskom’s grid won’t be subject to these charges.
Eskom’s proposed tariff structure includes a single energy charge, an ancillary network charge, a network demand charge, and separate service and administration fees, with the service and administration charges applicable regardless of usage. For solar-powered households still connected to the grid, these changes could mean significantly higher bills. For instance, customers who currently pay R196 in fixed charges would see this increase to R554, a 183% jump, even if they don’t use Eskom-generated electricity.
Households consuming 400kWh per month could see their bills rise from R1,178 to R1,476, a 25% increase. However, heavy power users—such as those consuming 900kWh per month—may see their bills decrease by nearly 8%, from R2,853 to R2,629.
Eskom also proposes removing the inclining block tariff, which currently charges higher rates for higher energy usage, replacing it with a flat rate for all consumption levels. Additionally, it plans to allow customers with solar panels to export electricity back to the grid, potentially offsetting some of their bills.
Monde Bala, Eskom’s group executive for distribution, urged the public to participate in Nersa’s consultation process to ensure fair tariffs for all residents. “The electricity supply industry is undergoing fundamental changes that will shape future economic growth and prosperity,” said Bala. “The proposed tariffs aim to restructure charges and prevent unintended subsidies.”
Eskom first introduced these changes in its 2021 tariff plan but has revised them several times. It argues that increased fixed charges will make tariffs more reflective of true costs, without generating additional revenue beyond what Nersa approved for the 2024/25 period.
