Minister of Energy and Electricity Kgosientsho Ramokgopa has emphasised that the department, in collaboration with the South African Local Government Association (SALGA) and municipalities, is dedicated to finding a lasting solution to the increasing cost of electricity in South Africa.<\/p>\n\n\n\n
The Minister spoke at a media briefing on Monday morning (29 July) about the significant increase in electricity costs. <\/p>\n\n\n\n
He said the ministry is currently focused on implementing the electricity pricing plan in collaboration with Eskom, municipalities, and SALGA. <\/p>\n\n\n\n
Ramokgopa highlighted some initiatives by municipalities that have not been well received by communities, such as the introduction of a “surcharge” (also known as a network fee). <\/p>\n\n\n\n
He emphasised that rather than publicly debating the necessity of the surcharge, the focus should be on finding a more sustainable solution to the issue.<\/p>\n\n\n\n
The Minister mentioned that talks with SALGA had already started during the sixth administration. <\/p>\n\n\n\n
He highlighted the importance of working together, acknowledging the situation as unsustainable.<\/p>\n\n\n\n
Communities are becoming increasingly upset and people are struggling to afford the cost of electricity.<\/p>\n\n\n\n
The Minister, along with the Deputy Minister, has decided not to stand idly by despite the fact that this falls under the exclusive responsibility of local authorities.<\/p>\n\n\n\n
While municipalities rightfully claim it as their responsibility, Ramokgopa said an agreement has been reached with SALGA to address this issue internally.<\/p>\n\n\n\n
Ramokgopa stressed the importance of the National Energy Regulator of South Africa (Nersa) in finding solutions. <\/p>\n\n\n\n
He stated that as an independent authority, Nersa is responsible for protecting consumers and examining proposed tariff increases from Eskom and municipalities. <\/p>\n\n\n\n
Ramokgopa expressed the intention to collaborate with Nersa rather than exert pressure on them. <\/p>\n\n\n\n
He emphasised the need for a Nersa framework that considers the interests of the poor and the marginalised, ensuring their access to electricity. <\/p>\n\n\n\n
Additionally, he highlighted the importance of protecting the interests of the affluent and ensuring that the pricing structure remains affordable over time. <\/p>\n\n\n\n
Ramokgopa also emphasised the need to safeguard industries from becoming uncompetitive due to the pricing structure. <\/p>\n\n\n\n
He expressed a commitment to working with municipalities to address their challenges and resolve the issue of rampant electricity prices.<\/p>\n\n\n\n
The current electricity pricing regime ties prices to Eskom\u2019s costs, resulting in decades of mismanagement and crisis spending being passed on to consumers.<\/p>\n\n\n\n
Eskom\u2019s tariff increases have significantly outstripped inflation since load-shedding began in 2008, with the tariff increasing by 653% over the last 15 years while inflation increased by only 129% over the same period.<\/p>\n\n\n\n