Ramokgopa promises more transparent electricity bills under new policy

Electricity Minister Kgosientsho Ramokgopa announced a new policy aimed at increasing transparency in electricity billing on Tuesday. The revised policy seeks to address affordability concerns and ensure consumers are not unfairly burdened by costs, according to Ramokgopa. Key changes include a more transparent and cost-reflective electricity tariff structure, with bills clearly showing how charges are calculated.

Individual components of the tariff, such as energy and generation costs, transmission and distribution network charges, ancillary services, and municipal surcharges, will be itemized. Ramokgopa emphasized that this would allow consumers to understand how their electricity costs accumulate before reaching their final bill. Additionally, the policy aims to prevent the shifting of costs from non-paying consumers to those who consistently pay their bills.

It also includes measures to strengthen social protection for poor and vulnerable households through a modernized system for administering free basic electricity. The government plans to integrate electricity beneficiary information with existing databases to identify eligible households for free basic electricity. Ramokgopa noted that the current system places a significant administrative burden on municipalities, and the revised policy seeks to alleviate this.

The policy comes as progress has been made in tackling load shedding and load reduction. The Eastern Cape became the seventh province to eliminate load reduction last week, meeting the government's October target. Ramokgopa expressed confidence that the remaining provinces would also achieve this goal ahead of schedule. The revised policy will also provide negotiated electricity pricing agreements to protect strategically important industries from closure and job losses.

Government has already engaged with major industrial electricity users, including smelters, and is considering agreements with other industry players. The policy aims to guide the work of NERSA, Eskom, municipalities, and new participants in the electricity market, transitioning from a traditional Eskom-and-municipality-focused system to a more transparent, efficient, and fair pricing system that supports vulnerable households and protects productive industries.