Cabinet has approved the Draft Revised Electricity Pricing Policy for public consultation, with submissions due by 20 September 2026. The revised framework, gazetted on 21 August 2026, is the first update to the policy since 2008 and responds to sweeping changes in South Africa’s electricity sector including private generation, electricity trading, and the Electricity Regulation Amendment Act of 2024.

Key Proposals And Ministerial Claims

The Department of Electricity and Energy stated the draft policy provides direction on cost-reflective tariffs, transparent tariff structures, and the protection of vulnerable consumers. Electricity Minister Kgosientsho Ramokgopa said a 10-year electricity price forecast would be published by the National Energy Regulator of South Africa, telling the Sunday Times, “We want to create a 10-year horizon” to give consumers and industry certainty.

Minister Ramokgopa also indicated the policy would increase free basic electricity for qualifying poor households from 50kWh to between 200kWh and 300kWh per month. However, this figure has not been independently confirmed in the published draft text, which reportedly leaves the amount to annual determination by the departments of electricity and social development together with National Treasury.

On billing transparency, the Minister said itemised bills would show energy costs, network charges, and other components. “The bill that you are receiving must be able to itemise how the municipality or Eskom has arrived at that which they say you owe,” Ramokgopa said. Claims that the policy explicitly prevents Eskom and municipalities from passing on inefficiency-related costs to consumers have also been made by the Minister but remain unverified from the draft document itself.

Public Participation And Sector Reaction

The department said the consultation aims to give electricity consumers, municipalities, labour, business, and civil society an opportunity to review the policy. “All submissions received within the prescribed period will be duly considered in the finalisation of the Policy,” it stated. Comments can be emailed to [email protected], posted, or delivered by hand.

“The revision of the EPP is therefore necessary to ensure that Government’s electricity pricing policy remains fit for purpose and continues to provide clear policy direction as South Africa transforms to an increasingly competitive electricity market,” the department said.

Independent electricity pricing specialist Deon Conradie described the draft as providing “a clearer framework for an electricity market that is no longer dominated by a vertically integrated Eskom,” while Ferroalloys Producers Association chair Nellis Bester cautioned that the policy cannot be assessed in isolation from other regulatory developments. The finalised policy is expected after the comment period closes on 20 September 2026.