Relief is on the horizon for South African electricity users. Government has unveiled a set of measures aimed at bringing down the cost of power while protecting vulnerable households and the industries that keep the economy humming.
The measures are contained in the Revised Electricity Pricing Policy, which Cabinet approved for public comment last month. The policy modernises the 2008 Electricity Pricing Policy to match a rapidly changing energy landscape, including the unbundling of Eskom and the reforms introduced by the Electricity Regulation Amendment Act of 2024.
Certainty for a Decade Ahead
Speaking at a media briefing in Pretoria on Tuesday, Electricity and Energy Minister Kgosientsho Ramokgopa said the policy is designed to give households and investors something they have long asked for: predictability. Under the new framework, the National Energy Regulator of South Africa (NERSA) will be required to publish a 10-year electricity price forecast.
“For heavy industries, when people want to make significant investments in the South African economy, and they’re investing in a sector that relies on electricity, they want to compute their return on investment,” the Minister explained, noting that a clear price path helps unlock big-ticket investment decisions.
Competition That Benefits Consumers
The policy embraces South Africa’s move towards a wholesale electricity market, where new generators can sell power directly to customers through bilateral agreements. More players and more competition, the Minister said, will help drive efficiency, and efficient providers mean better prices.
“We are insisting that the provider of electricity must be efficient. And when it is efficient, you will see that the price of electricity will not be what we are currently charging,” Ramokgopa said.
The framework also insists on transparent, cost-reflective tariffs with no hidden costs, protecting diligent consumers and rewarding well-run utilities.
Looking After the Vulnerable
Crucially, the policy strengthens the safety net for those who need it most. Government plans to modernise the administration of free basic electricity by building a central, nationally accessible database that links with Home Affairs and social grant records, so that qualifying households can be identified and supported far more easily.
“There’s a good chance that someone who qualifies for the social grant will also qualify for free basic electricity,” the Minister said.
Energy-hungry industries get a boost too. A revamped Negotiated Pricing Agreement instrument will allow concessional electricity pricing not only for firms under pressure, but also for businesses that can accelerate growth in priority sectors and create jobs, what Ramokgopa called “a pre-emptive strike to rejuvenate the South African economy.”
With the policy now open for public comment, South Africans have a direct say in shaping a fairer, more affordable electricity future. Once adopted, it will guide NERSA, Eskom, municipalities and the growing family of independent generators, a whole-of-system reset designed to keep the lights on and the costs down.
The full announcement is available from SAnews.
Photo: commons.wikimedia.org
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