Ekurhuleni 2025/2026 Electricity Tariff Hike
What Sectional Title Residents Need to Know
If you are a complex resident, sectional title owner, or part of a homeowners’ association (HOA) in Ekurhuleni, September 2025 will bring a major financial shock. This tariff hike does not only affect body corporates but also applies to HOAs with bulk electricity connections.
If you don’t receive electricity directly from the municipality but rather through a prepaid company or managing agent, these new charges will impact you significantly.
Ekurhuleni has completely overhauled its electricity tariff structure. Here’s what you need to know.
The Old vs New Tariff Structure
Before 2025:
- Fixed Charge
- kWh Charge
From 2025 onwards:
- Fixed Charge
- Network Access Charge
- Demand Charge (kVA)
- kWh Charge (Standard)
- kWh Charge (Peak)
- kWh Charge (Off-Peak)
This new structure introduces multiple new costs, creating an administrative nightmare for trustees, managing agents, prepaid companies, and residents alike.
Importantly:
- These charges are imposed by Ekurhuleni, not trustees or managing agents.
- Trustees and agents will face most of the complaints, but the changes are beyond their control.
Understanding the New Charges
The charges fall into two main categories:
- Fixed or Semi-Fixed Charges
- Time-of-Use Billing
Fixed or Semi-Fixed Charges
1. Fixed Charge
- This long-standing connection charge remains at R734.97 per month.
- In a 150-unit building, that’s only ~R4.89 per unit per month - negligible compared to what’s coming.
2. Demand Charge (kVA)
- Ekurhuleni now measures the maximum demand of the entire complex over 1-minute intervals each month.
- Example: At 7pm, when geysers, stoves, heaters, TVs, and lights are all running, demand peaks. Even if usage drops later, the highest recorded peak for the month is charged.
- For a 150-unit complex, this new charge is around R6,682.21 per month - a charge that didn’t exist before.
3. Network Access Charge
- Based on the highest kVA demand over a rolling 12-month period.
- Peaks in winter will set a baseline that stays until the next winter.
- For a 150-unit building, this adds another R5,742.87 per month.
Total Semi-Fixed Charges:
- Previously: R734.97
- Now: R13,160.05 (1690% increase, R87 per unit per month)
- Some complexes may see increases of up to 3000%.
Time-of-Use Billing
Previously, electricity was charged at a flat rate per kWh. Now it’s split by time and season:
1. Time Slots
- Peak: 06:00–08:00 & 18:00–20:00
- Off-Peak: 22:00–05:00
- Standard: Weekday afternoons
2. Seasonal Rates
- Winter (June–August): High demand, higher tariffs
- Summer (September–May): Lower demand
The challenge:
- To bill accurately, a meter reading is needed every time the time slot changes, around 5 readings per day, per unit.
- Without smart meters, this is impossible to calculate fairly.
Result:
- Most body corporates will calculate an average blended rate across all time slots.
- This means energy - conscious residents may feel penalised, since they can’t prove reduced peak usage without specialised metering.
What This Means for Residents
- Expect new charges on your monthly statement.
- Management agents and trustees will likely spread costs evenly across all units.
- In some complexes, levy increases may follow to cover the additional expenses.
What You Can Do
1. Reduce Peak Load
The biggest cost driver is peak demand. You can help reduce your building’s peak by:
- Switching off geysers during peak hours
- Limiting heaters and aircons between 6 - 8am and 6 - 8pm
- Cooking outside peak times where possible
2. Explore Alternative Energy
Solar and battery solutions can significantly reduce reliance on municipal electricity. Consider speaking to providers such as Metrowatt
3. Upgrade to Smart Metering
Smart meters enable accurate time-of-use billing, rewarding households that avoid peak usage. While this won’t reduce semi-fixed charges, it can lower your kWh costs. Off-peak rates are up to 34% cheaper than peak rates.
Final Thoughts
The Ekurhuleni 2025/2026 electricity tariff changes are a reality for all sectional title residents and HOAs with bulk supply. While trustees and managing agents will handle the administration, these costs are imposed by the municipality and are unavoidable.
By working together - reducing demand, considering alternative energy, and investing in smart metering - residents can help soften the impact of these steep increases.
A more through explenation can be found here