Ramokgopa: Government to address high electricity tariffs

The electricity and energy minister announced a collaborative effort to bring down high municipal electricity tariffs and alleviate financial pressure on consumers

The electricity and energy ministry and the South African Local Government Association (Salga) are working to reform the electricity pricing structure and reduce high tariffs imposed by municipalities.

Electricity and Energy Minister Kgosientsho Ramokgopa told a media briefing on Monday that exorbitant tariffs exacerbate energy security gaps, leaving the poor to bear the brunt of high prices and forcing them to endure longer hours of load reduction.

Load-reduction refers to scheduled electricity blackouts in areas where there is high usage and illegal connections.

Ramokgopa said the failure to address high tariffs would leave communities facing longer periods without electricity and would provoke their anger.

“We have seen a number of initiatives on the side of municipalities that have enraged communities,” the minister said, referring to the R200 surcharge for prepaid electricity users  in Johannesburg which was implemented at the start of July to fund the maintenance of existing infrastructure and new projects. The surcharge was put under review after its introduction triggered a public outcry.

“We really do not want to publicly engage on the merit of whether the R200 is needed or not, what we want to do is to find a more enduring and robust solution to this tariff problem,” Ramokgopa said on Monday.

His department was working on a plan to improve the electricity distribution system in collaboration with municipalities to help address poor management, reduce debt and increase investment in infrastructure.

He said municipalities’ failure to maintain their infrastructure was becoming a burden to consumers, with customers unable to afford rising electricity costs. While municipalities had the right to put up trariffs, the minister said he would not “fold his arms and watch the municipalities unjustifiably increase prices”.

“There has been an exponential rise in the cost of electricity. Our electricity pricing plan needs to kick in and that is the primary preoccupation of the work of the ministry now working with Mr [Monde] Bala from the Eskom side, the distribution side working with municipalities and also, by definition, working with Salga,” Ramokgopa said.

Bala is power utility Eskom’s group executive for distribution.

Ramokgopa called on the National Energy Regulator of South Africa (Nersa) to play a role in resolving the tariff issue and safeguarding consumer interests. 

“Nersa has a duty to protect the consumer — they have a duty to interrogate the proposed tariff increases from Eskom and also from municipalities,” he said.

Ramokgopa said his ministry and the regulator would come up with a payment structure which was fair to both the poor and more affluent consumers.

A more affordable and reliable power supply would promote business growth and boost South Africa’s economy, he said, adding that the government’s focus would be on ensuring sustainable access to electricity while making it affordable for everyone.