{"id":872639,"date":"2026-08-28T16:21:21","date_gmt":"2026-08-28T14:21:21","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=872639"},"modified":"2026-08-28T16:22:21","modified_gmt":"2026-08-28T14:22:21","slug":"new-electricity-price-overhaul-for-south-africa-officially-published","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/872639\/new-electricity-price-overhaul-for-south-africa-officially-published\/","title":{"rendered":"New electricity price overhaul for South Africa officially published"},"content":{"rendered":"\n

The Department of Electricity and Energy has officially gazetted the Revised Electricity Pricing Policy for public comment, proposing big changes to pricing in South Africa.<\/p>\n\n\n\n

The gazette was recently announced alongside plans to unbundle Eskom and create a competitive energy market in the country.<\/p>\n\n\n\n

This would involve splitting Eskom into three separate entities and would allow private-sector participation in the national grid.<\/p>\n\n\n\n

With the proposed changes to the national grid, Electricity and Energy Minister Kgosientsho Ramokgopa said an adjustment to the country’s electricity pricing policy was necessary.<\/p>\n\n\n\n

Electricity prices in South Africa have risen sharply in recent years, with tariff adjustments causing prices to double over the last decade.<\/p>\n\n\n\n

The Revised Electricity Pricing Policy is aimed at “providing a unified and coherent framework for
electricity pricing in a transitioning electricity sector.”<\/p>\n\n\n\n

Its purpose is also to establish cost-reflective, efficient energy pricing across the country and add transparency to electricity pricing.<\/p>\n\n\n\n

The new policy would mean that electricity prices are broken down and explained at each step, giving transparency over how tariffs were decided.<\/p>\n\n\n\n

It would also require electricity tariffs to become cost-reflective within five years, based on the actual cost of providing electricity to the customer.<\/p>\n\n\n\n

The National Energy Regulator of South Africa (NERSA) would determine and approve tariffs, and licensees would not be allowed to charge higher than the prescribed amount.<\/p>\n\n\n\n

In terms of the policy, “a licensee may not charge a customer any other tariff and use provisions in agreements other than those determined or approved by NERSA as part of its licensing conditions.”<\/p>\n\n\n\n

The policy also states that tariffs must be subsidised for low-income households, either by covering only operating costs in these instances or by other direct or indirect methods.<\/p>\n\n\n\n

“Provision may be made for the promotion of local economic development through special tariffs for categories of commercial and industrial users.”<\/p>\n\n\n\n

The goal of the new tariffs<\/h2>\n\n\n\n
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Ramokgopa previously said that the revised policy would incorporate a multi-year electricity tariff outlook to further enhance pricing transparency.<\/p>\n\n\n\n

The policy requires a five-year electricity pricing forecast for both national and municipal prices, which is constantly adjusted for potential shifts by NERSA.<\/p>\n\n\n\n

This will give households support in planning for the future and comes as good news for South African businesses.<\/p>\n\n\n\n

A better understanding of future electricity prices will help large, energy-intensive businesses, such as mining operations, develop accurate long-term plans and attract investors.<\/p>\n\n\n\n

The pricing forecast would ideally break down the contributions to pricing from various sectors along the energy supply chain, helping to understand where potential price increases arise.<\/p>\n\n\n\n

The main sectors would be generation, transmission, and distribution, with businesses across all three categories contributing to overall electricity tariffs.<\/p>\n\n\n\n

Forecasting is intended to protect the country’s businesses and households from unexpected price shocks or price volatility.<\/p>\n\n\n\n

Originally, Ramokgopa said the policy would include a 10-year pricing forecast to enable long-term planning.<\/p>\n\n\n\n

While the revised pricing policy is good news for South Africa’s households and businesses, private participants in the energy sector are not guaranteed success.<\/p>\n\n\n\n

The policy said that although businesses are allowed to set tariffs that reflect the production costs and risks they take, they are not guaranteed profits.<\/p>\n\n\n\n

NERSA will have 12 months to establish a national tariff structure, which would be used as a framework for the tariffs charged by all licensed distributors.<\/p>\n\n\n\n

The Revised Electricity Pricing Policy is currently out for public comment for 30 days.<\/p>\n\n\n\n

Interested persons and organisations are invited to submit written comments by post to: Private Bag X 96, Pretoria, 0001, or hand delivery to: Matimba House, 192 Visagie Street, Cnr Paul Kruger, Pretoria.<\/p>\n\n\n\n

Digital submissions can be made via email to: EPP.Comments@dee.qov.za<\/p>\n\n\n\n

The full document can be read below:<\/p>\n\n\n\n