Ramokgopa’s plan won’t convince South Africans to get back on the grid – Outa

Outa, an organisation combating tax abuse, has endorsed the revised electricity pricing plan presented by Dr Kgosientsho Ramokgopa, the minister of Electricity and Energy. They believe that increasing transparency in electricity pricing could help rebuild confidence in the market. However, Outa's CEO Wayne Duvenage warns that restoring trust will require more than just a revised pricing framework; the government must prove that the grid can once again provide a reliable and affordable source of electricity.

The proposed electricity plan arrives at a time when many customers have already turned to solar, batteries, and generators to reduce their reliance on Eskom and the national grid. Duvenage emphasizes that the issue of customers being penalized by Eskom and the government for problems the state should have addressed a decade ago began more than ten years ago, leading customers to adopt more cost-effective alternatives.

Independent energy analyst Tshepo Kgadima also highlights the problem, stating that Eskom has 7,000 megawatts of surplus power due to customers migrating off the grid. This surplus is expected to increase to 13,000 megawatts within the next five years. While Duvenage welcomes the proposals for transparent tariffs, competition protection, and reduced electricity costs, he believes these measures should have been implemented years ago when Eskom's decline became apparent.

He argues that the government cannot now expect customers to return to the grid simply due to a new pricing policy, as they have already invested heavily in self-generation infrastructure. Duvenage questions whether the revised policy will provide enough changes to halt the ongoing electricity affordability crisis, stating that South Africa did not need to reach this point if reforms had been introduced earlier.