Minister Ramokgopa pledges to address rising electricity prices
Ramokgopa has assured South Africans that his department is diligently seeking a solution to the rising electricity costs.
Kgosientsho Ramokgopa, the Minister of Energy and Electricity, has promised South Africans that his department is actively partnering with the South African Local Government Association (SALGA) and municipalities to tackle the escalating electricity costs with a sustainable approach.
Speaking at a media briefing on Monday, Ramokgopa emphasised the urgent need for a comprehensive electricity pricing plan.
Tackling the electricity price hike
“We’ve seen an exponential rise in the cost of electricity,” Ramokgopa stated.
“Our electricity pricing plan needs to kick in, and that’s our primary focus now, working closely with Eskom, municipalities, and SALGA.”
Municipal initiatives to cope with rising costs have faced backlash from communities. One controversial measure is the implementation of a “surcharge” or network fee.
“We don’t want to debate publicly whether the R200 surcharge is necessary,” Ramokgopa said.
“Our goal is to find a more enduring and robust solution to this problem.”
The Minister highlighted ongoing discussions with SALGA, which began during the sixth administration.
“There’s a shared understanding that we must work together. This situation is untenable. Communities are increasingly frustrated, and people simply can’t afford the cost of electricity.”
Collaborative Efforts with Stakeholders
Despite the local authorities’ jurisdiction over electricity pricing, Ramokgopa stressed the ministry’s active involvement. “Municipalities rightfully claim this is their domain, but we agree with SALGA that we must resolve this issue collectively,” he said.
Central to the solution is the role of the National Energy Regulator of South Africa (Nersa). “As an independent authority, Nersa has the duty to protect consumers and scrutinize proposed tariff increases from Eskom and municipalities. Our approach will be to collaborate, not pressure Nersa,” Ramokgopa explained.
“We insist on a Nersa framework that protects the poor and marginalized, ensuring they have access to electricity. Simultaneously, we must ensure the pricing structure remains affordable for all, including the affluent and industries, to maintain competitiveness.”
Progress in load shedding Suspension
In a separate announcement, Eskom celebrated four months (121 consecutive days) of uninterrupted power supply since 26 March, including 87 days of constant supply throughout the winter period. On 23 July, Eskom achieved 35 000MW of available capacity, meeting an evening peak demand of 30 740MW, a level of capacity not seen since 2018.
Eskom’s Generation Operational Recovery Plan has played a significant role in this achievement. “Our operational efficiency continues to surpass our winter assumptions,” Eskom noted.
Reflecting on the past, the last time South Africa experienced such a prolonged suspension of load shedding was over four years ago, between 16 March 2020, and 9 July 2020, when load shedding was suspended for 116 days.