South Africa electricity sector entered a new phase in 2025 with the Electricity Regulation Amendment Act, 38 of 2024 (ERAA) coming into effect. Signed on 16 August 2024 and commencing 1 January 2025, the law reshapes market rules to open competitive trading, separate transmission from Eskom’s generation and distribution activities, and modernise how electricity is priced and purchased. For households, this translates into clearer pathways for buying power (directly or via retailers in future), evolving tariff structures (including wider time-of-use options and rebalanced fixed vs energy charges), and stronger expectations around safety and metering standards.
A cornerstone of the reform is the stand-up of the National Transmission Company South Africa (NTCSA) with NERSA licences to operate the grid, plan the system, and enable competitive trading. This is the platform for an eventual open market in which multiple generators sell to customers over a neutral transmission system—moving away from a single-buyer model.
In parallel, tariff restructuring for 2025/26 approved by NERSA introduces material changes for Eskom customers (with municipal customers following their own cycles). Expect average increases of ~12.74% for Eskom direct users (from 1 April 2025) and ~11.32% at municipal bulk level (from 1 July 2025), alongside continued expansion of time-of-use (ToU) options and rebalancing of fixed monthly charges. Households that can shift usage to off-peak periods will increasingly benefit.
On the safety side, the wiring code SANS 10142-1 remains the basis for safe low-voltage installations, with new updates (Edition 3.2 in 2024) and the long-standing requirement for a Certificate of Compliance (CoC) when you sell property or alter installations especially relevant if you add rooftop solar or backup systems.
Electricity Law Reform 2025 Quick Summary
Field |
Details |
|---|---|
Core legal change |
Electricity Regulation Amendment Act 38 of 2024 – signed 16 Aug 2024, commenced 1 Jan 2025 |
What it does |
Enables a competitive electricity market, establishes a neutral Transmission System Operator via NTCSA, modernises licensing/trading |
2025/26 tariffs |
Eskom direct: +12.74% (from 1 Apr 2025); municipal bulk: +11.32% (from 1 Jul 2025); broader ToU and structural changes continue |
Household impact |
More time-of-use options, higher fixed charges in some tariffs, need to manage peak use; prepare for retailer choice as markets mature |
Safety & compliance |
SANS 10142-1 wiring code; CoC required for new/altered installations; PV and backup must meet standards |
Who runs the grid |
NTCSA (licensed by NERSA) operates the transmission grid and the system operator function |
Official references |
gov.za ERAA media statement; Eskom/NERSA tariff pages; NTCSA licensing updates |
Sources: Presidency/ERAA notice; law-firm commencement notes; NERSA/Eskom tariff updates; NTCSA licensing updates; SANS 10142-1 guidance. (South African Government)
The Big 2025 Shifts Explained
1) From monopoly to market: how the ERAA changes the rules
The ERAA sets the legal scaffolding for an open, competitive market where multiple generators can sell electricity via a central platform, while a neutral NTCSA runs the grid and system operations. This is meant to unlock new capacity, crowd in private investment, and reduce the risk of supply shortfalls. Parliament and expert commentary describe it as the most significant electricity reform in decades.
2) NTCSA as the backbone of a new system
NTCSA holds key NERSA licences (transmission, system operation, trading, import/export), enabling it to plan, dispatch, and procure power transparently, including from the Southern African Power Pool. Households will not see this directly, but a well-run transmission system is what makes competitive retailing and improved reliability possible.
3) Tariffs and price signals: what households should expect
NERSA’s 2025/26 decision approved ~12.7% average increases for Eskom direct customers and lower municipal bulk increases, with continuing adjustments to time-of-use periods and fixed charges. The policy direction is to send cost-reflective signals rewarding off-peak use and better aligning revenue recovery with network costs. If you can run geysers, EV charging, or laundry off-peak, your bill can be meaningfully lower than running everything at the evening peak.
4) Appliances, labels and efficiency
South Africa’s energy efficiency label and Minimum Energy Performance Standards (MEPS) continue to tighten the baseline for common appliances. When you replace a fridge, AC or TV, look for the South African energy label (SANS 941-linked) and higher efficiency classes your total cost of ownership improves as tariffs rise.
5) Safety and rooftop solar: compliance matters
Adding PV or backup? Your installer must work to SANS 10142-1 (latest edition) and issue a CoC; poor workmanship risks safety and insurance problems. If you export to the grid (where allowed), municipal/utility rules and metering requirements apply.
What to Do at Home (Practical Checklist)
- Understand your tariff. Check if you’re on time-of-use or flat energy rates and what your fixed charge is; then shift flexible loads (geyser timers, laundry, dishwashers, EV charging) to off-peak windows.
- Seal in efficiency. Replace failing appliances with high-efficiency, labelled models; fit LED lighting and smart geyser controls.
- Consider rooftop solar sensibly. Use SANS 10142-1-compliant installers; keep your CoC; ask your municipality/utility about small-scale embedded generation (SSEG) registration.
- Budget for 2025/26 prices. Factor in approved increases and any new fixed charges; watch your municipality’s notices if you’re on municipal supply.
- Track reform milestones. As retail competition grows, you may see new supplier/plan options—compare before you switch.
FAQs
1) Is there a new national “family tariff” in 2025?
No. What changes in 2025/26 is how existing tariffs are structured and priced with approved increases and a continued shift toward time-of-use signals and rebalanced fixed charges. Specific options depend on whether you buy directly from Eskom or via a municipality.
2) Can households choose electricity suppliers now?
Not yet, in most places. The ERAA sets up the market framework; NTCSA and market systems must mature before widespread retail choice is available. Watch for pilot programmes and municipal announcements.
3) Will time-of-use save me money?
It can if you shift usage to off-peak periods. Study your tariff’s peak, standard and off-peak windows and automate flexible loads accordingly.
4) Do I need a Certificate of Compliance (CoC) for solar?
Yes. Any significant change to your installation (including PV/backup) must be SANS 10142-1 compliant, and a registered electrician must issue a CoC. Keep it for insurance and property transactions.
5) Are there household tax rebates for new PV in 2025?
The temporary individual solar tax rebate applied in 2023/24; in 2025 the policy focus shifted to structural market reform and business investment allowances. Always confirm current incentives with National Treasury/SARS updates.
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