Eskom electricity tariff—categories and rates (2023/24, c/kWh)

Key Takeaways

  • Landlight tariffs (20A and 60A), offered primarily in rural areas, are Eskom’s highest tariff rates and are exclusive to direct (non-local authority) customers.
  • The Homelight 20A Block 1 tariff, which applies to consumption between 0–350 kWh, is the lowest among Eskom’s tariffs.
  • Landlight tariffs carry higher rates because they exclude other fixed charges such as: Ancillary service charge (c/kWh), Network demand charge (c/kWh), Network capacity charge (R/POD/day), and Service charge (R/POD/day). This structure makes Landlight more suitable for rural or low-income areas, where simplifying cost recovery is necessary.
  • Eskom classifies its tariffs into the following categories:
    • Residential Tariffs (for household electricity supply): Homelight 20A, Homelight 60A, Homepower, and Homeflex
    • Urban Tariffs (for large industrial and commercial users): Megaflex, Miniflex, Nightsave Urban (Large and Small), Business Rate, Public Lighting, Transflex (rail), and Gen-Wheeling/Offset tariffs
    • Rural Tariffs (for agricultural, business, and residential customers in rural areas): Ruraflex, Nightsave Rural, Landrate, and Landlight
    • Municipal Tariffs (for municipalities purchasing in bulk and for municipal services like water pumps or offices): Municrate, Municflex, and Public Lighting.
  • Customers with rooftop solar PV systems are required to be on the Homeflex tariff plan, which is based on Time-of-Use (ToU) pricing.
  • Several Eskom tariffs are Time-of-Use-based, where charges vary depending on peak, standard, and off-peak periods. These include: Nightsave Urban Large, Nightsave Urban Small, Megaflex, Miniflex, Homeflex, Nightsave Rural, Ruraflex, and Ruraflex Gen

Over the years, Eskom has developed a range of tariff structures to cater to the diverse needs of its customers across South Africa. In the 2023/24 tariff year, Landlight tariffs, specifically the 60A and 20A variants, remain the highest charged rates, standing at 685.48 c/kWh and 531.74 c/kWh respectively. These tariffs are exclusive to direct (non-local authority) customers and are predominantly applied in rural areas where Eskom supplies electricity directly to end-users, without municipal intermediaries.

At the other end of the spectrum, the Homelight 20A Block 1 tariff, applicable to households consuming between 0–350 kWh, is the lowest, at 168.78 c/kWh. This affordability makes it ideal for lower-income or low-usage households, reinforcing Eskom's attempt to maintain accessibility in basic electricity consumption.

The high cost of the Landlight tariffs is compensated by the absence of several fixed charges typically included in other Eskom tariffs.

Source:

Eskom

Period:

2023/24
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Six African countries have achieved full electricity access, with four being from North Africa
  • The highest-ranked countries have managed to provide electricity to every single citizen.
  • Four of the six countries with 100% access are from North Africa.
  • The list isn't a continuous climb; there's a big jump down from the 100% group to the rest of the top 15.
  • The data shows that with the right investment and policies, it is a very realistic goal for a country to achieve full electrification.
14 African countries have less than 50% of their population with electricity
  • The low access rates in nations like South Sudan and the Central African Republic are often linked to conflict and instability.
  • Fourteen countries on the continent have less than 50% of their population with electricity.
  • At the very bottom of the list, South Sudan has a 5.40% access rate, while Burundi stands at 11.60% and Chad at 12.00%.
  • Twelve African countries have less than 40% access.
Coal dominated South Africa’s electricity source with over 80% share in 2023
  • Coal contributes a staggering 81.8% of South Africa’s total electricity generation.
  • Renewables remain marginal, with wind, solar photovoltaic (PV), and solar thermal collectively accounting for less than 8%.
  • Nuclear power holds a modest role, supplying 3.73% of the total output.
  • Hydropower and oil are limited contributors, together making up just over 6%.
  • Clean energy is growing, but slowly, with solar photovoltaic (PV) and wind leading the charge among non-fossil sources.
South Africa electricity distribution (TWh), 2015-2024

  • Electricity distribution in South Africa reached its peak in 2018, a record high of 231 TWh.

  • The lowest electricity distribution was recorded in 2023, dropping to 206 TWh.

  • Load shedding has become a persistent challenge, with 2023 experiencing the highest number of load shedding days — 332 days in total.

  • Eskom accounts for about 80% of electricity distributed in South Africa.
Eskom’s average electricity tariff in cents per kilowatt hour (c/kWh), 2013/14—2023/24
  • Eskom’s average electricity tariff increased by approximately 162% between 2013/14 and 2023/24.
  • Tariffs are categorized into two groups based on distribution: Local Authority Tariffs and Non-Local Authority Tariffs.
  • Landlight Tariff (Non-Local Authority category) is the highest rate and in 2023/24 it stood at 608.61 c/kWh.
  • Homelight 20A (Block 1) is the lowest tariff also in the non-local authority category, at 168.78 c/kWh in 2023/24.

  • Eskom applies Time-of-Use (ToU) pricing, where tariffs vary by Time of day (peak, standard, off-peak periods) and Demand season (high-demand season: June to August and Low-demand season: September to May)

Nigeria has achieved a metering rate of 47%, with Ikeja DisCo leading the way at an impressive 78% progress
  • Ikeja DisCo leads with a 78.45% metering rate, having metered over 1.03 million customers.
  • Abuja DisCo follows closely with a 71.60% metering rate and over 924,000 metered customers.
  • Ibadan has the highest number of registered customers, but only a 44.23% metering rate.
  • Kaduna and Kano have alarmingly low metering rates of 24.92% and 24.77%, respectively.
  • Yola DisCo has the lowest metering rate at just 14.45% of its 824,700 customers.
  • Eko DisCo has a relatively high metering rate of 63.92% despite having fewer registered customers.
  • Only 4 out of 13 DisCos have metered at least half of their customer base as of March 2025.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved