Minister Ramokgopa promises to change unsustainable electricity prices

ELECTRICITY and Energy Minister Dr Kgosientsho Ramokgopa has promised big changes to electricity prices in the coming months in efforts to address what he described as unsustainable prices.

Ahead of the ANC NEC meeting at various venues in Gauteng, Ramokgopa disclosed that South Africa was on the brink of ‘energy poverty'.

"Electricity is unaffordable. We cannot continue along this tariff path. We are getting into a situation here in the country with new dimensions of energy poverty. There are households there, as I speak to you, that will not be able to afford the cost of electricity...Poor households are being forced to make choices between a loaf of bread and buying prepaid electricity units," he said.

His remarks come after the residents of Tembisa forced Ekurhuleni Mayor Nkosindiphile Xhakaza to reconsider the R126 electricity fixed surcharge against residents who took to the streets two weeks ago over skyrocketing electricity prices.

Energy expert, Professor Vally Padayachee, reflecting on the soaring prices of electricity, indicated that the rising cost of electricity is concerning as it impacts not only household budgets but also the overall economy.

"Increases of over approximately 600% in recent years are unsustainable and disproportionate to many citizens' income levels. Electricity, a public good, should arguably be like water, a fundamental right, accessible and affordable for all South Africans.

"For the average South African household, rising electricity costs have become a serious financial concern. Many families find themselves allocating a growing portion of their income to energy bills, which can lead to difficult choices between essential services such as food, education, and healthcare. This financial strain can cause stress and adversely affect family life," he stated.

To curb the effects of energy poverty, Vally said: "The rising costs of electricity calls for urgent structural reforms to the energy pricing model in South Africa. Policymakers must explore ways to stabilise prices for households and reduce the burden on vulnerable populations. There must be a concerted effort towards transitioning to a sustainable energy future that emphasises renewable energy sources.

"By investing in sustainable energy technologies, the government can work towards reducing reliance on expensive fossil fuels, ultimately lowering electricity costs over the long term."

Taking to X, former Eskom COO, Matshela Koko, lamented the rising costs of electricity in spite of a promise that IPPs (independent power producers) would help reduce energy prices.

"Eskom's electricity sales have plummeted from 220 TWh to 180 TWh over the past decade, yet electricity costs have skyrocketed by 600%. Here’s the truth: wind, solar, and battery storage won’t lower the electricity prices you see on your electricity bills. It is irrespective of the near-zero marginal cost of production of wind and solar projects."

Cape Times