
Introduction: South Africa’s Energy Crossroads
South Africa’s relationship with electricity is unique. From the relentless shadow of loadshedding to Eskom’s ever-evolving tariff structures, we’ve learned to adapt. As we enter 2025, a new challenge looms: the nationwide rollout of time-of-use (TOU) tariffs under Eskom’s Homeflex system. This shift demands more than resilience; it requires smart, proactive solutions.
Understanding Homeflex: Eskom’s TOU Tariff System
What Is Homeflex? In short, Homeflex introduces Peak and Off-Peak pricing for electricity, with higher rates being applied during high-demand periods, such as 06:00 to 08:00 and 17:00 to 20:00. Eskom’s goal is to reduce strain on the power grid by incentivising off-peak energy use, but that comes with a catch… For homeowners who purchase electricity from their local municipality, such as in Cape Town, there are layered tariffs due to the municipality selling electricity at a premium rate to ensure the maintenance and stability of its power infrastructure. In addition, Eskom’s planned pricing changes penalise non-solar homes that rely on the grid during peak hours.
The Geyser Dilemma: A Symbol of Energy Waste
Among all the complexities around TOU tariffs lies the main culprit for household energy usage, the hot water cylinder or geyser. They make up for 40–60% of a household’s monthly energy bill and they dominate consumption due to inefficient heating cycles. The main pitfall being that reheating water during peak hours is inefficient and costly. Morning showers and evening dishes trigger energy spikes.
Global Lessons: What SA Can Learn
The transition to TOU tariffs is not a problem unique to South Africa. Countries such as Australia, Canada, and Germany have all navigated this challenge, so we already have some key lessons we can take from:
- Smart technology is essential: Automation (geyser timers and home energy management) bridges the gap between tariffs and savings.
- Equity matters: Subsidies for low-income households prevent energy poverty.
- Education drives success: Clear communication empowers consumers.
Smart Solutions for South African Homes
1. Geyser Controllers
- How It Works: Pre-heat water overnight during off-peak hours.
- Savings: Reduce geyser costs by 30–40%.
2. Load Monitoring & Automation
- Smart Plugs: Schedule pool pumps, air conditioners and other home appliances to only run during off-peak windows.
- Energy Dashboards: Track usage in real time to identify waste.
3. Municipal Partnerships
- Advocate for TOU-compatible infrastructure and fair pricing models.
A Blueprint for Households
- Audit Energy Use: Focus on geysers, pool pumps, and air conditioner systems.
- Invest in Smart Tech: Start with geyser controllers (ROI in 3 to 6 months).
- Shift Habits: Run dishwashers, laundry, and device charging during off-peak hours.
Turn Challenge into Opportunity
Eskom’s Homeflex TOU tariffs are a double-edged sword. While they strain unprepared households, they also catalyse innovation. South Africans weathered loadshedding by embracing smart technology, and we can transform tariffs into tools for savings and sustainability.
At Sensor Networks, we believe in empowering homes to thrive beyond peak hours. For more information, visit sensor.energy.