Minister of Power Kgosiensho Ramokgopa. Photo credit: GCIS
TThe Department of Power and Energy and the South African Local Government Association (Salga) are working to reform the electricity tariff system and reduce high electricity bills charged by councils.
Power and Energy Minister Gosientosho Ramokgopa told a press conference on Monday that exorbitant electricity tariffs were exacerbating the energy security gap, with the poor bearing the brunt of high prices and being forced to endure extended load shedding.
Load shedding refers to planned power outages in areas with high electricity usage and illegal connections.
Ramokgopa said if high electricity bills were not addressed, communities would be left without electricity for longer periods, angering residents.
“We have seen a number of initiatives by municipalities that have infuriated communities,” the minister said, referring to a R200 surcharge for prepaid electricity customers in Johannesburg that was introduced in early July to cover the maintenance of existing infrastructure and new projects. The surcharge is under review after its introduction sparked public outcry.
“We are not at all keen to have a public debate on whether R200 is needed or not. What we want is to find a more permanent and stronger solution to this tariff issue,” Ramokgopa said on Monday.
His department was working on a plan to work with municipalities to improve their electricity distribution systems, helping to correct poor management, reduce debt and increase investment in infrastructure.
The minister said that the inability of municipalities to maintain their infrastructure is a burden on consumers, who cannot afford rising electricity prices. While municipalities have the right to increase electricity tariffs, the minister said, “I will not sit idly by and watch municipalities unfairly increase tariffs.”
“Electricity prices are rising exponentially, our electricity tariff plan needs to be put into action and that is the main focus of the ministry’s efforts right now working with mr. [Monde] “We are working with Bala on the Eskom side, the distribution side working with the municipalities and of course with Sarga,” Ramokgopa said.
Bala is group executive for electricity distribution at power utility Eskom.
Ramokgopa called on the National Energy Regulator of South Africa (Nersa) to play its role in resolving the tariff issue and protecting the interests of consumers.
“Nersa has a duty to protect consumers and is obliged to investigate proposed tariff increases from Eskom and municipalities,” he said.
Ramokgopa said the ministry and regulators would devise a payment structure that was fair to both poor and wealthy consumers.
A more affordable and reliable electricity supply would encourage business growth and boost South Africa's economy, he said, adding that government would focus on ensuring sustainable access to electricity while making it affordable for everyone.
