SA Electricity Prices Rose 907% Since 2007, Minister Ramokgopa Reveals at Policy Briefing
- Electricity and Energy Minister Kgosientsho Ramokgopa revealed that electricity prices have surged by around 907% since 2007
- Ramokgopa noted South Africa has not reviewed its electricity pricing framework since 2008, despite major shifts in consumption
- A cabinet-approved policy proposes expanding free basic electricity for qualifying households from 50kWh to up to 300kWh
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TSHWANE— South Africans have endured a steep 907% surge in power costs since 2007, significantly outstripping the 150% inflation rate recorded over 17 years. This as South Africans recently complained about the electricity price difference.
Speaking at a press conference on 18 August 2026 to outline a comprehensive revision of national energy pricing, Electricity and Energy Minister Dr Kgosientsho Ramokgopa explained that the widening disparity between utility tariffs and broader economic metrics continues to strain corporate balances and household finances nationwide.
"It's important that we address the cost of electricity," Dr Ramokgopa stated.
Outdated framework faces overhaul
The country's regulatory blueprint for pricing power has remained unchanged since 2008. Meanwhile, consumption behaviors across informal settlements and low-income areas have transformed. Widespread adoption of basic household appliances—including refrigerators, kettles, laptops, and mobile phones—has sharply elevated base demand in informal communities.
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"Like people living in informal settlements, for example, now often use fridges, cellphones, laptops and electric kettles, creating greater demand for electricity," Dr Ramokgopa noted.
Expanded social safety net
To cushion vulnerable households against severe price shifts, the draft framework proposes a substantial increase in Free Basic Electricity allocations. Qualifying families currently receiving 50kWh per month could see their allocation expanded to between 200kWh and 300kWh. Government officials verified that existing Treasury allocations will absorb the expansion, avoiding additional fiscal demands.
Addressing operational inefficiencies, Dr Ramokgopa cited historical leakages where municipal grants intended to fund poor household power allocations were diverted into general administrative spending. The government intends to leverage digital platforms and update indigent registers alongside national grant databases to ensure direct delivery to eligible citizens.
Under the draft measures scheduled for public consultation, local municipalities must perform cost-of-supply studies to justify tariff structures, provide unbundled, itemized billing for consumer transparency, and transition toward cost-reflective tariffs over a five-year period while preserving baseline social protections.
View Ramokgopa discussing the new policy on X:
Oil-filled heater tests consume R840 worth of electricity
In a related article, Briefly News reported on Johannesburg content creator Wes Reddy's evaluation of a 2000-watt oil-filled heater, revealing the significant costs associated with its daily use amid rising electricity tariffs in South Africa. With many South Africans expressing skepticism about the viability of such heaters, the insights shared raise critical questions about heating solutions in an era of escalating energy expenses.
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Source: Briefly News
