By: Bright Ntuli
Minister of Electricity and Energy Kgosientsho Ramokgopa says a new national electricity pricing policy is nearing completion, signalling a shift in how power tariffs will be determined and applied in South Africa.
Ramokgopa indicated that the policy will outline proposed reforms for the country’s electricity supply industry, including changes to tariff structures, pricing methodologies and the balance between affordability for consumers and financial sustainability for utilities. The policy is also expected to address longstanding concerns about the rising cost of electricity and the impact on households, businesses and municipalities.
He noted that Eskom’s direct customers have already been subjected to an 8.76% tariff increase, which took effect at the beginning of April. Municipal customers, who receive electricity through local authorities, are expected to see a 9.01% increase from 1 July, in line with the annual municipal tariff adjustment cycle approved by the energy regulator.
Ramokgopa said the forthcoming policy aims to provide greater transparency and predictability in electricity pricing, while ensuring that revenue generated is sufficient to maintain infrastructure, support generation capacity and attract investment into the sector.
