Government proposes measures to curb rising electricity costs
Government has proposed electricity pricing reforms aimed at providing greater tariff certainty, protecting vulnerable households and supporting energy-intensive industries.
The South African Government has proposed measures to help reduce the rising cost of electricity while ensuring tariffs remain cost-reflective and protecting vulnerable households and key economic sectors.
The proposals are contained in the Revised Electricity Pricing Policy, which updates the 2008 policy and responds to changes in the electricity sector, including Eskom’s unbundling and electricity market reforms.
Speaking in Pretoria, Electricity and Energy Minister Kgosientsho Ramokgopa said electricity tariffs had increased by about 977% since 2007.
A key proposal is for the National Energy Regulator of South Africa to publish a 10-year electricity price forecast, giving businesses and investors greater certainty when planning long-term investments.
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The policy also aims to promote greater competition by allowing electricity generators and users to enter into bilateral supply agreements as South Africa moves towards a wholesale electricity market.
Government also plans to strengthen support for poor and vulnerable households, including modernising the administration of free basic electricity through a central database linked to existing government records.
The policy further proposes action against electricity non-payment and illegal connections, while seeking to prevent the costs of municipal debt from being passed on to paying consumers.
Government is also proposing negotiated electricity pricing arrangements for energy-intensive industries, including businesses that could contribute to economic growth and job creation if given more favourable electricity rates.
