A new electricity pricing policy (EPP) will be published for public comment within the next 30 days, according to an announcement at a media briefing by the Ministry of Electricity and Energy on Wednesday (March 5).
The briefing by the Portfolio Committee on Electricity and Energy included insights from the National Energy Regulator of South Africa (NERSA) into its decision on Eskom’s Multi-Year Price Determination 6 revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
The Ministry of Electricity and Energy is drafting the new policy aiming to revise the methodology used to determine Eskom tariffs. The policy will also review how special tariffs are granted to large industrial users and address concerns about free basic electricity (FBE) allocations for low-income households, News24 reports.
The EPP will focus on three key areas:
- Reviewing NERSA’s tariff determination methodology: The policy seeks to refine the regulatory framework that sets Eskom’s tariffs, ensuring they are cost-reflective while addressing inefficiencies within the power utility.
- Re-evaluating negotiated pricing agreements: Eskom currently offers special tariffs to large electricity consumers, including industrial users in the ferrochrome and silicon carbide sectors. The policy will assess the fairness and sustainability of these agreements.
- Reforming the FBE policy: Introduced in 2003, the FBE policy provides 50 kWh of electricity per month to indigent households. However, only about 20% of eligible recipients currently receive this benefit as funds are allocated to municipalities through the equitable share transfer, which does not always reach intended beneficiaries.
Once published, the draft EPP will undergo a full public participation process.
