Ramaphosa says SA must tackle rising electricity costs after load shedding

President Cyril Ramaphosa has emphasized that South Africa must address the rising cost of electricity following the significant progress made in ending load shedding. In his weekly letter to the nation, Ramaphosa stressed that the country cannot become complacent about the improvement in Eskom's performance and must complete reforms to create a reliable, affordable, and cleaner electricity system.

He stressed that the cost of electricity has increased substantially over the past two decades, placing additional pressure on households and businesses. To tackle this, government is transforming the electricity sector structure, introducing a new Electricity Pricing Policy to promote transparent tariffs and prevent inefficiencies from being passed on to consumers.

NERSA is also finalizing regulations for a competitive wholesale electricity market, which could drive efficiency, encourage investment, and reduce electricity costs. The government is also establishing an independent, state-owned Transmission System Operator (TSO) to manage the national electricity grid and market, ensuring Eskom and other producers compete on a level playing field.

Ramaphosa highlighted that the reforms aim to move South Africa away from a system where one company carries almost the entire responsibility for generating electricity, to one where multiple producers can invest and compete. Workers will not lose their jobs as a direct result of the TSO establishment, and the reforms will be implemented responsibly with further engagements planned with stakeholders.

The ultimate objective is to provide abundant, affordable, and reliable power to every South African.