South Africa Unveils Revised Electricity Pricing Policy to End Monopoly

Minister of Electricity and Energy Kgosientsho Ramokgopa announced a Revised Electricity Pricing Policy during a media briefing in Pretoria to modernize South Africa's energy framework. The policy aims to transition the country toward cost-reflective tariffs and dismantle the monopoly of the state-owned utility Eskom by allowing bilateral agreements between generators and off-takers.

To provide investment certainty for heavy industries, the policy mandates that the National Energy Regulator of South Africa (NERSA) publish a 10-year price forecast. Ramokgopa noted that electricity tariffs have increased by approximately 977% since 2007, significantly outpacing inflation. He criticized municipalities for passing infrastructure losses onto tariffs and punishing paying customers to subsidize non-paying users.

Social protections include increasing free basic electricity for qualifying households from 50kWh to between 200kWh and 300kWh, managed via a centralized database integrated with Home Affairs and social grant records. The policy also introduces Negotiated Pricing Agreements for energy-intensive industries to spur economic growth.

While the cabinet has approved the policy, it is scheduled to be gazetted for public comment on August 21, 2026. Independent analyst Tshepo Kgadima criticized the initiative, arguing that corruption drives high costs and claiming the government discriminates by allowing multinational corporations to pay lower rates than citizens.