Electricity Minister Dr Kgosientsho Ramokgopa is proposing a major overhaul of South Africa’s electricity pricing system, promising greater price certainty for households and businesses over the next decade.
The revised electricity pricing policy, which will be published for public comment on Friday, aims to address what the minister describes as the hidden costs of electricity and reduce the financial pressure on consumers.
Ramokgopa says the current policy, introduced in 2007, no longer reflects changing patterns of electricity consumption. Electricity prices have risen by 907% since then, compared with a 150% increase in inflation over the same period.
A key proposal is for the National Energy Regulator of South Africa (NERSA) to publish a 10-year electricity price forecast, giving consumers and industries greater certainty when planning their finances and investments.
The announcement comes as households contend with the latest electricity tariff increase implemented in July.
Ramokgopa also wants tighter regulation of electricity resellers, greater uptake of rooftop solar and measures to prevent discriminatory tariffs.
The policy could therefore reshape how electricity is priced across South Africa, with government attempting to balance affordability for households, competitiveness for industry and the financial sustainability of the electricity sector.