electricity & energy Department of Electricity and Energy REPUBLIC OF SOUTH AFRICA For the first time

electricity & energy Department of Electricity and Energy REPUBLIC OF SOUTH AFRICA For the first time since 2008 Electricity price changes ⚡ I know what but you're actually to hear this Because a Government outlines plan to lower electricity costs Tuesday, August 18, 2026 SA news South African Government News Agency cost-reflective and that vulnerable households and strategic economic sectors are protected. The measures are reflected in South Africa's Revised Electricity Pricing Policy, which Cabinet approved for public comment last month. The policy updates the 2008 Electricity Pricing Policy to reflect developments in the electricity supply industry, including ongoing market reforms linked to the unbundling of Eskom and the implementation of the Electricity Regulation Amendment Act, 2024. It establishes national principles and tariff-path certainty, provides a framework for transparent, efficient and cost-reflective tariffs, guides the National Energy Regulator of South Africa (NERSA), Eskom and municipalities, aligns prices with a competitive market, and strengthens social protection and accountability. SA news South African Government News Agency electricity transparent. You see, Eskom municipalities now break down what it is that you're paying for exactly, from itself, to the network charges and they have to justify how they final bill. You see, our minister says "If you look at the current tariff, anything between 1% to 2.5% of the tariff that you are paying is on the basis that Eskom is unable to recover what the people are owing, and municipalities, they put in the cost of supply studies the fact that they are being owed a lot of money and then it means that they are putting additional pressure on diligent consumers. In terms of this policy, that's not allowed," the Minister said. that up to 2.5% tariffs that we currently pay come from money municipalities haven't elsewhere. In other words, paying customers end up footing more of the bill because others haven't paid, or inefficiencies in Eskom's own systems. So under this proposal, those costs couldn't passed on to you And another part of this could be massive for businesses. You see, our energy regulator would now also Ten-year price forecast The Minister said the policy seeks to establish a tariff path that will provide some certainty on the cost of electricity over the next 10 years. "It is for this reason that, as part of this Electricity Pricing Policy, NERSA will be required to publish a 10- year price forecast. This is important because, for heavy industries, when people want to make significant investments in the South African economy, and they're investing in a sector that relies on electricity, they want to compute their return on investment. If electricity is a big part of the input cost, you need to have an appreciation of what the price path looks like," Ramokgopa said. a 10-year pricing So, that companies project what cost years into the future, and electricity-heavy manufacturing, that could make it easier to out whether a new factory or a major investment actually makes financial sense. As for this whole proposal, it goes out Electricity and energy minister Kgosientsho Ramokgopa publishes the revised electricity pricing policy for public comment on Friday, 21 August, with a media briefing on Tuesday. Cabinet approved it for consultation on 30 July. public comment. For more South African news, subscribe.