Ramokgopa unveils revised electricity pricing policy, vows to end ‘hidden costs’ on consumer bills
South Africa’s revised electricity pricing policy will target hidden costs, municipal debt and tariff inefficiencies, with government promising greater transparency on what consumers actually pay for electricity.
Electricity Minister Kgosientsho Ramokgopa has introduced a revised electricity pricing policy aimed at increasing transparency and ensuring consumers are not unfairly burdened by hidden costs. The new policy seeks to provide a clearer breakdown of charges on electricity bills, including energy and generation costs, transmission and distribution network charges, ancillary services, and municipal surcharges.
It also aims to prevent the transfer of non-payment costs and municipal debt to compliant consumers. Ramokgopa stated that the policy would introduce a more cost-reflective tariff structure, allowing consumers to understand how their bills are calculated. Additionally, the government plans to integrate electricity beneficiary information with existing databases to streamline the provision of free basic electricity to qualifying households.
The minister highlighted progress in reducing load shedding and load reduction, with seven provinces achieving the government's October target. The revised policy also includes negotiated electricity pricing agreements to protect strategically important industries, such as smelters, from closure and job losses.
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