‘PRICES ARE SHOCKING’

ELECTRICITY and Energy Minister Kgosientsho Ramokgopa says the cost of electricity in South Africa is “unsustainable” and is driving many households into energy poverty.

“We are revising the electricity pricing policy to address the issue of the cost of electricity. It's unaffordable,” Ramokgopa said in an interview with broadcaster eNCA over the weekend.

“I mean, it's dealing a major blow to the disposable income of households.”

He said that for many families, the choice comes down to buying a loaf of bread or replenishing electricity units.

“The choice is easy. They are going to buy a loaf of bread,” he said.

Ramokgopa reiterated the government's responsibility to intervene.

He said: “The State has got a duty not to be retrenched, but to be at the forefront of the resolution of this preeminent problem.”

His comments come after the National Energy Regulator of South Africa’s (Nersa) decision to approve a 12.74 percent electricity tariff increase for Eskom earlier this year.

The increase was effective from 1 April 2025. 

The increase is part of a multi-year revenue determination process, which will also see tariffs rise by 5.36 percent in the 2026 and 2027 financial year and by 6.19 percent in 2027 and 2028.

Nersa said the tariff hike aims to stabilise South Africa’s energy supply by improving Eskom’s financial position, which has been weakened by aging infrastructure, delayed maintenance, and ongoing load-shedding.

However, the move has sparked criticism from civil society groups, business owners, and ordinary citizens who argue that consistent increases are adding pressure to an already stretched cost of living.

Ramokgopa emphasised that electricity pricing reform is necessary, particularly for poor and rural communities.

He added: “That is disproportionately affecting your peri-urban areas, villages, and, if you like, poor areas… and that's something that is receiving our attention.”

Meanwhile, Eskom must pay French nuclear power company Framatome nearly R1 billion in a contractual dispute over the replacement of steam generators at the Koeberg Nuclear Power Station.

The Western Cape High Court also ordered Eskom was ordered to pay the company about R729 million and an additional R256.6m.