Government prepares national electricity pricing policy amid affordability concerns

New policy targets relief for households and energy-intensive industries as tariffs rise despite stable supply outlook.

The South African government is finalising a national electricity pricing policy aimed at making power more affordable for households and industrial consumers, Electricity and Energy Minister Kgosientsho Ramokgopa said.¹²

The policy is in its final stages of development and will be presented to cabinet, Ramokgopa said.¹ It seeks to create what he described as a "fair and affordable" price structure to shield struggling households from the effects of recent tariff increases.¹

Eskom's direct customers faced an 8.76% tariff increase at the start of April, while municipal customers will see a hike of just over 9% in July.¹ The minister acknowledged that electricity availability does not guarantee affordability.¹

"The lights might be on or available, but it doesn't mean that everyone can afford," Ramokgopa said.¹ He added that the government had identified categories of users for targeted relief, including energy-intensive industries where electricity costs constitute a large portion of fixed expenses.¹

"The more electricity increases, the greater they become uncompetitive. They might lose market share," he said of large industrial consumers.¹

The policy development comes as Eskom expects a stable power system through the 2026 winter with no load shedding anticipated.¹² The focus is shifting from reliability to affordability as rising costs place increasing pressure on households, according to Business Day.²

Ramokgopa discussed the proposed pricing changes and possible sectoral relief measures in interviews, addressing how Eskom would balance affordability with financial sustainability.²