July electricity increases: what you should know

Understanding what’s changing – and how to respond – can help you stay in control of your monthly costs. 

What’s happening from 1 July

Municipal electricity tariffs are reviewed each year, and for the 2026/27 period, increases will apply across most municipalities from 1 July. If you receive electricity through your municipality, you will likely see the change reflected in your next bill.

These adjustments usually do not happen in isolation. In many cases, they are introduced alongside increases in other municipal services such as water, refuse collection and property rates. Together, these changes can noticeably increase overall household expenses.

It is also worth noting that households supplied directly by Eskom are not affected by these electricity price changes, as their annual increase took effect in April. 

How much are prices increasing?

Tariff increases vary by municipality, but approved adjustments across major metros give a helpful indication of the general range:

Your exact increase may differ slightly depending on your tariff structure and usage, so it’s worth reviewing your municipality’s published pricing.

Why these increases feel more noticeable

This year’s tariff increases are arriving at a particularly challenging time for many households. Costs in other areas, such as fuel and borrowing, have also increased, leaving less room in monthly budgets to absorb additional expenses.

At the same time, the tariff changes take effect in the middle of winter when consumption naturally increases. The combination of higher tariffs and increased usage means the impact is often felt straight away, rather than gradually over time.

A shift in how electricity is managed

As electricity costs continue to rise year after year, many homeowners are starting to view it differently. Rather than being seen as a fixed or predictable expense, electricity is increasingly treated as a cost that needs to be actively managed.

This shift is encouraging households to take a closer look at how electricity is used at home. Instead of reacting only when bills increase, there is a growing focus on understanding usage patterns and making more deliberate decisions about where and how electricity is consumed.

Where most households can start saving

For homeowners looking to manage their bills, it helps to know which areas typically use the most electricity. In many South African homes, a large portion of electricity consumption comes from a few key sources:

• Geysers and hot water systems
• Heating appliances, especially during winter
• Lighting and general appliance usage

Geysers, in particular, often account for as much as 40% of the electricity bill, rising as high as 50% in winter.  This makes them one of the most important areas to consider when looking for ways to reduce costs.

Looking beyond short-term savings

While small changes can help reduce electricity use in the short term, many households are starting to think more strategically about long-term cost management.

This often begins with improving efficiency. Simple adjustments, such as managing geyser settings or being more conscious of usage during peak times, can make a noticeable difference over time. Understanding where electricity is being used is an important first step before making larger decisions.

For some homeowners, this process leads to exploring alternatives such as solar. Rather than being seen as a lifestyle upgrade, solar is increasingly viewed as a way to reduce reliance on grid electricity and manage long-term costs more effectively. 

Making solar more accessible

One of the biggest shifts in recent years is that solar is no longer limited to households with large upfront budgets. More flexible options are now available, making it easier to take gradual steps towards reducing electricity costs.

Common approaches include:

• Outright purchase – typically offers the strongest short and long-term savings for homeowners who can invest upfront
• Finance options – allow the cost of a system to be spread over time through structured repayments leading to significant long-term savings particularly when the system is paid off
• Rental models – provide access to solar with little or no upfront cost, using a fixed monthly fee and helps families to access short-term savings

Each option offers a different balance of upfront cost, monthly affordability and long-term savings. The right choice depends on your household’s budget, how long you plan to stay in your home, and how quickly you want to reduce your reliance on municipal electricity.

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Next steps for homeowners

Municipal tariff increases are becoming a regular part of the cost of running a home. While the short-term impact can be challenging, they are also prompting a more considered approach to electricity use.

By understanding where your electricity goes and taking practical steps to manage it, you can reduce the pressure on your monthly budget and make more informed decisions for the future.