South Africa has tabled a revised electricity pricing policy for public comment, proposing a 10‑year tariff forecast, stricter cost‑reflective rules and expanded social protection for vulnerable households as government advances reforms to open the power sector beyond Eskom.
Cabinet last month approved the Revised Electricity Pricing Policy, updating the 2008 framework to reflect market reforms linked to Eskom’s unbundling and the Electricity Regulation Amendment Act, 2024.
Electricity Minister Kgosientsho Ramokgopa said tariffs have risen nearly 977 percent since 2007, underscoring the need for certainty and efficiency.
Under the policy, the National Energy Regulator of South Africa will publish a 10‑year price path to guide investment decisions in energy‑intensive industries.
The policy sets national principles for transparent, efficient tariffs, strengthens accountability, and prohibits hidden costs such as municipal debt recovery being passed to consumers.
It also empowers authorities to act against non‑payment and illegal connections.
As part of broader reforms, government is liberalising the electricity market to end Eskom’s monopoly, enabling bilateral supply agreements between new generators and off‑takers, and moving towards a wholesale electricity market.
Ramokgopa said the policy will modernise free basic electricity administration through a national database integrated with social grant systems, ensuring indigent households receive support.
A negotiated pricing agreement instrument will also be expanded to assist energy‑intensive industries, not only in distress but also those able to drive growth and employment in priority sectors.
“The support we are providing to the poor, the indigent and the vulnerable will be articulated most comprehensively,” Ramokgopa said, adding that efficiency in supply will lower costs for consumers.
Public submissions on the policy will inform its final adoption, shaping South Africa’s transition to a competitive electricity market with stronger protections for households and industries.
JN/APA