For residents and property owners in the Nelson Mandela Bay Municipality (NMBM), electricity costs have seen a significant upward trajectory over the last six years. Under the Inclining Block Tariff (IBT) system, the more you consume, the more you pay per unit.
The following article tracks the highest domestic tariff- specifically the top consumption block for non-indigent (Non-ATTP) households – from 2020 through the current 2025/26 financial year.
The top IBT represents the Middle Class and above.
Nelson Mandela Bay Domestic Electricity Tariffs: 2020 to 2026
The highest tariff in Nelson Mandela Bay is typically triggered once a household exceeds 500 or 600 units (kWh) in a single month. This “Block 3” (or “Block 4” in earlier years) rate is what high-consumption households pay for every unit over that threshold.
Historical Tariff Table (Highest Domestic Block)
The prices below represent the Non-ATTP Domestic rate for both Credit and Prepaid meters, as these have been aligned in recent years.
| Financial Year | Top Block Threshold | Price (c/kWh) Excl. VAT | Price (c/kWh) Incl. 15% VAT |
| 2020/21 | >900 kWh | 230.00 | 264.50 |
| 2021/22 | >600 kWh | 252.55 | 290.43 |
| 2022/23 | >500 kWh | 277.00 | 318.55 |
| 2023/24 | >501 kWh | 318.41 | 366.17 |
| 2024/25 | >501 kWh | 352.54 | 405.42 |
| 2025/26 (Current) | >501 kWh | 397.67 | 457.32 |
Note: The current 2025/26 rate of R4.57 per unit (Incl. VAT) is now the standard for high-usage appliances like geysers, pool pumps, and air conditioning once the initial lower-priced blocks are exhausted.
The Shrinking “Cheap” Zone
In 2020, the highest tariff only kicked in after 900 units. By 2022, the municipality lowered this threshold significantly. Today, the highest rate applies to everything you consume above 500 units, meaning moderate-sized families hit the expensive block much earlier in the month than they did five years ago.
Cumulative Increase
Since July 2020, the cost per unit on the highest block has risen from roughly R2.65 to over R4.57. This represents a total increase of approximately 72% over six years, far outpacing general inflation (CPI).
Shift in Strategy
The NMBM has moved toward a “three-block” structure for most domestic users. While the first 350 units remain relatively subsidized to protect lower-middle-income households, the “penalty” for going over 500 units has become a primary revenue driver for the metro and a major incentive for residents to move toward energy-efficient hardware or solar PV systems.
Future Outlook: 2026/27 and Beyond
While not yet finalized, early budget projections for the 2026/27 financial year (starting July 1, 2026) suggest a further increase in the range of 9% to 12.8%, depending on NERSA’s final approval of Eskom’s bulk purchase price. If a 9% increase is implemented, the highest domestic rate could climb to approximately R4.98 per unit (Incl. VAT).
For those managing high-load appliances like geysers or commercial-style fridges, these figures underscore the growing ROI (Return on Investment) for smart energy monitoring and automated load-shifting.
Related: One SMART Way to Save Electricity
