High cost of electricity straining households: Ramokgopa

Electricity Minister Dr Kgosientsho Ramokgopa has highlighted how the soaring cost of electricity is straining households and hurting industries. He believes the new pricing policy will help alleviate the financial burden on consumers by reducing hidden costs linked to high electricity prices. The minister unveiled the measures during a media briefing in Pretoria, inviting public feedback on the proposal.

Ramokgopa points out that the current policy, enacted 17 years ago, has become obsolete as household energy consumption has shifted significantly. Since its launch in 2007, electricity prices have surged by 907%, whereas inflation rose by a relatively modest 150%. To provide long-term predictability for electricity costs over the next decade, the revised policy aims to establish a clear "tariff path" for the next 10 years. "Our goal is to create a 10-year horizon for electricity pricing," the minister emphasized.

Meanwhile, households are coping with the most recent tariff hike, implemented in July. Energy expert Chris Yelland expressed skepticism about the promises made regarding the policy, particularly the expanded special pricing agreements with the smelting industry. Currently, this subsidized rate of 62 cents per kilowatt hour is only offered to two smelting firms, but the minister intends to extend this benefit to a broader range of industrial consumers.

Yelland also noted that the government plans to regulate electricity resellers, promote rooftop solar installations, and prevent discriminatory tariffs.