Electricity and Energy Minister Kgosientsho Ramokgopa speaks during the unveiling of the Revised Electricity Pricing Policy, which proposes changes to how electricity tariffs are structured and regulated.

South African households could face a major shift in how electricity prices are structured as government moves to overhaul the country’s electricity pricing system, with the proposed changes placing affordability and the treatment of low-income consumers at the centre of the debate.

Electricity and Energy Minister Kgosientsho Ramokgopa unveiled the Revised Electricity Pricing Policy on Tuesday, August 18, after Cabinet approved its publication for public comment in July. The policy updates the 2008 framework and proposes changes to how electricity tariffs are structured and regulated.

The proposals include separating electricity costs across generation, transmission, distribution and retail, while strengthening regulation of prices, tariffs and charges.

Government says the changes are intended to improve transparency and ensure consumers are not unfairly burdened by costs arising from inefficiencies in the electricity system.