One group of South Africans pay over R1,700 for electricity before using a single unit

South Africa has seen an aggressive rise in fixed charges for electricity over the past few years, with consumers now paying more than R500 a month before they use a single unit.

Depending on the municipality in which consumers reside, they could pay over double that amount.

For example, three-phase postpaid users in Johannesburg now pay R1,761 per month before using any electricity.

This was revealed in GoSolr’s latest Quarterly Solar Update for May 2026, which focused on rising electricity prices in South Africa.

In its section titled, ‘The fixed tariff trap’, GoSolr explained that the most controversial yet overlooked shift in South Africa’s electricity market has been the aggressive rise in fixed charges.

Fixed charges are the non-variable monthly fees customers pay for grid access and maintenance, regardless of their energy usage.

These charges have risen substantially over the past few years, with another increase of around 28% taking effect in April 2026 for residential users.

According to GoSolr, this has brought the fixed fee to R543 per month before a single unit of electricity is used.

“This is a fundamental change in philosophy: you now pay significantly just to be connected, regardless of how efficiently you consume,” the organisation explained. 

“In other words, using less electricity no longer guarantees meaningful savings. And that’s the problem.” 

“Because when efficiency is no longer rewarded, the entire system starts working against itself.”

These fixed charges add fuel to the fire of South Africa’s sky-high energy costs, with direct customers also paying 8.76% more, and municipalities paying 9.01% more from April 2026.

This means electricity prices in South Africa have risen by over 1,100% since 2007. According to GoSolr, South Africa now ranks as the seventh most expensive country for electricity in the G20.

Joburg vs Cape Town

GoSolr pointed out that the issue of fixed charges becomes worse when looking at a municipal level, as municipal tariff structures can vary wildly.

The organisation claimed Cape Town has arguably taken the most balanced approach, with fixed fees increasing by 8.6% and variable charges by 5.4% to 6.2%.

These increases came alongside the introduction of an opt-in time-of-use tariff. “It’s not perfect, but it at least gives consumers choice,” it said.

In contrast, Johannesburg has offered “a case study in how not to do it”, GoSolr said. 

Prepaid users in Johannesburg now pay around R242 per month in fixed charges, while three-phase postpaid users are hit with a R1,761 monthly charge before using any electricity.

“This is not a minor imbalance but rather a systemic inequality baked into the tariff structure. Instead of correcting it, the city is entrenching it,” GoSolr said.

To make matters worse, Joburg households that install solar at their homes are now also legally forced to switch from prepaid to postpaid tariffs.

This, the organisation said, triggers dramatically higher fixed charges for these users. 

In the meantime, promises of these households being able to export the excess electricity they generate from their solar systems to the grid remain “largely theoretical”.

“In some cases, billing is inconsistent due to irregular meter readings, creating further uncertainty,” GoSolr said.

The organisation argued that the aggressive rise in fixed charges and the soaring price of electricity in general are signs that South Africa is heading in the wrong direction.

This situation becomes more concerning as an increasing number of South Africans reduce their electricity usage and invest in alternatives to Eskom, such as rooftop solar.

“As more consumers reduce usage or partially defect from the grid, the remaining users are forced to absorb a larger share of fixed costs,” GoSolr said.