Kgosientsho Ramokgopa, the Minister of Electricity and Energy, is actively engaging stakeholders to reassess South Africa’s electricity pricing policy. The goal is to strike a balance between affordability for households and industries while ensuring the sustainability of Eskom, the national power utility.
Dan Marokane, the CEO of Eskom, has indicated that the minister aims to complete this review by the end of June 2026. This initiative follows Ramokgopa’s announcement in July 2025 regarding plans to lower electricity prices through a comprehensive evaluation of the current pricing structure.
The minister emphasised the need for a collaborative national approach to find a solution that ensures affordability for both households and industries while maintaining Eskom’s operational viability. Marokane stressed that Eskom’s sustainability is crucial, given its long-term role in South Africa’s energy security.
Annual price increases by Eskom have often outpaced inflation, making electricity increasingly unaffordable for many South Africans. Professor Sampson Mamphweli, head of the energy secretariat at the South African National Energy Development Institute, noted that electricity prices, which were once very low to attract investment, have surged in recent years due to a history of artificially low pricing.
The introduction of Eskom’s retail tariff plan (RTP) in April 2025 has further burdened low-power consumers, particularly affecting lower and middle-income households. Energy expert Chris Yelland’s analysis revealed that while Eskom announced an average tariff hike of 12.74% on 1 April 2025, many households using less electricity experienced even higher increases in their bills. For instance, a two-person household consuming 500kWh monthly saw its bill rise by nearly 30%.
Conversely, higher consumption users benefited from reduced bills, with some households using over 1,100kWh per month experiencing declines in their electricity costs.
Following Eskom’s recent settlement with the National Energy Regulator of South Africa (Nersa), further price hikes may be on the horizon. This settlement allows Eskom to recoup R54 billion through future tariff increases, a decision that has drawn criticism from civil action groups like the Organisation Undoing Tax Abuse (Outa) and Afriforum.
Outa’s executive director expressed concern that further price hikes could exacerbate the challenges faced by already struggling South Africans. She also highlighted issues regarding transparency in decision-making, questioning the appropriateness of granting Eskom’s requests without addressing its accountability.
Afriforum is currently exploring the legality of the settlement, asserting that Nersa must uphold principles of transparency and protect consumer interests. The group condemned the secrecy surrounding the settlement, asserting that withholding such information from the public represents a significant breach of trust and accountability.