Ramokgopa says double-digit electricity tariffs must end

Electricity and Energy Minister Kgosientsho Ramokgopa says double-digit electricity tariffs must end.

He said the unaffordability of electricity, not only for the poor, but for less affluent households, is jeopardising the country’s socio-economic indicators.

Ramokgopa has pledged to Parliament to deliver a new electricity pricing policy review by the first quarter of next year, which will recommend ways to make the utility more affordable.

Answering questions in the National Council of Provinces on Thursday, Ramokgopa said he's read Eskom the riot act on annual price increases.

"I really want to get into the domain of price increases that are benchmarked in line with inflation. I've made the point publicly and I've shared with Eskom that the era of double-digit price increases is over."

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The Democratic Alliance's Dennis Ryder, however, argued that the National Energy Regulator of South Africa is being bullied by Eskom and acting like an enabler rather than an overseer.

But Ramokgopa said the new electricity pricing review will help to mitigate the cost of soaring tariffs and also suggest ways to increase free basic electricity without burdening the fiscus.

"Confidence levels are going to increase on us making projections on price increases going into the future."

Ramokgopa said municipalities are also not using subsidies meant to support the indigent, for the purpose it is intended.