Prepaid vs postpaid in 2025: which one actually costs less?
After the 1 April 2025 tariff changes, the answer flipped in some municipalities. We compare the real per-kWh cost on Eskom Homepower 4 prepaid vs Homelight, and on Joburg, Cape Town and Tshwane.
Prepaid vs postpaid in 2025
The South African convention used to be simple: prepaid was cheaper for low-income households (because of FBE and the lifeline tariff), and postpaid was cheaper for high-consumption households (because of the lower energy charges and no service-fee mark-up). The 1 April 2025 Eskom restructure and the 1 July 2025 municipal increases have shifted that picture.
What changed in 2025/26
- Eskom abolished the inclining block tariff for direct customers on Homelight and Homepower from 1 April 2025. There is now a single energy charge per kWh. - A new fixed network capacity charge applies to most postpaid Homepower customers — between R200 and R900 per month depending on supply size. - Several metros (City of Joburg in particular) widened the gap between the consolidated prepaid tariff and the conventional credit (postpaid) tariff.
The break-even points (illustrative, 2025/26)
| Supply | Prepaid effective rate | Postpaid effective rate (incl fixed) | Postpaid cheaper above | |---|---|---|---| | Eskom direct, 60A 1-phase | R3.36/kWh flat | R2.85/kWh + R~750/month fixed | ~ 1,470 kWh/month | | City of Joburg consolidated | R3.20–R4.05/kWh (block) | R2.40/kWh + R200/month fixed | ~ 800 kWh/month | | City of Cape Town domestic | R2.78–R4.31/kWh (block) | R3.00/kWh + R~270/month fixed | ~ 600 kWh/month |
How to decide for your household
1. Open our [rand-to-kWh calculator](/calculator), enter your municipality and an honest monthly spend. 2. Compare the marginal cost (the "next R100 buys X kWh" number) against your municipality's postpaid tariff per kWh plus its fixed monthly charges divided by your typical kWh. 3. If you're consistently above 800 kWh/month and renting, postpaid usually wins. If you're below 350 kWh/month, prepaid + FBE almost always wins.
If you want a person to look at it for you, we offer a paid R249 [Bill Review](/services). We're independent of every supplier.