--- title: Electricity Pricing Policy promises transparency, but is vague on affordability, civil society says date: 2026-09-28T10:53:23Z modified: 2026-09-28T10:53:23Z permalink: "https://350.org/press-release/electricity-pricing-policy-promises-transparency-but-is-vague-on-affordability-civil-society-says/" type: press-release status: publish excerpt: "" wpid: 175531956 author: tumi timestamp: 2026-09-28T10:53:23Z tags: [] --- **_South Africa—_**With [opposition growing to Eskom’s proposed 8.83% electricity tariff increase for 2027/28](https://iol.co.za/the-star/2026-09-21-pushback-grows-against-eskoms-proposed-tariff-increase-raising-affordability-concerns/), civil society organisations say South Africa’s revised Electricity Pricing Policy (EPP) falls short of addressing the growing pressure of rising electricity costs on households. The public comment period for the EPP, originally due to close on 27 September 2026, has been [extended to 28 October](https://www.dee.gov.za/minister-ramokgopa-extends-public-comments-period-on-the-electricity-sector-market-tranformation-position-paper-and-revised-electricity-pricing-policy/) after organisations and individuals requested more time to consider the policy. [The revised EPP acknowledges the need to support low-income households](https://www.gcis.gov.za/full-statement-on-the-cabinet-meeting-of-wednesday-29-july-2026), and government says it proposes raising the monthly Free Basic Electricity (FBE) allocation [from 50 kWh to between 200 and 300 kWh](https://dailyinvestor.com/energy/157000/r21-billion-meant-for-free-electricity-goes-missing-when-it-hits-municipal-bank-accounts/), within the existing budget. But the organisations say it does not make clear what the final allocation will be, who will qualify, how it will be paid for, or how households will be protected as prices keep rising. Community, environmental, labour and research organisations, including [350.org](http://350.org), New Economy Hub, the Climate Justice Coalition, Project 90 by 2030, Mobilize, and the World Wide Fund South Africa, are part of the [Electricity for All campaign](https://act.350.org/sign/free-basic-electricity-all/), which calls for an electricity system built on affordability, universal access and human dignity. [The revised EPP would require electricity bills to show the different charges](https://www.gcis.gov.za/full-statement-on-the-cabinet-meeting-of-wednesday-29-july-2026) they contain, including the cost of supplying electricity and municipal surcharges. The organisations say clearer bills will not make electricity affordable on their own. > _“Cost transparency is welcome, but our electricity pricing policy should result in the majority of households having access to the basic electricity needed to live with dignity. Our concern is that the policy, and government in general, is not transparent about the mechanisms for subsidising poor households within new tariff structures and a market open to private competition,”_ **said Ferron Pedro, Senior Campaigner at 350.org South Africa.** Electricity tariffs have increased by [more than 900% since 2007](https://www.sanews.gov.za/south-africa/government-outlines-plan-lower-electricity-costs?), according to Minister of Electricity and Energy Kgosientsho Ramokgopa. Eskom’s tariffs for direct customers rose by [8.76% from 1 April 2026](https://www.eskom.co.za/distribution/2026-2027-tariff-increase/), and [NERSA has approved a further 8.83% increase](https://www.nersa.org.za/files/files/2026/03/MediaStatement-NERSAapprovesEskomRetailTariffsandStructuralAdjustmentapplicationfor2026-27.pdf?) for the 2027/28 financial year. With unemployment and the cost of living also increasing, rising electricity costs are putting immense pressure on household budgets, forcing [families to spend more on electricity at the expense of other essentials](https://www.news24.com/business/economy/poor-households-now-spend-more-on-electricity-than-on-maize-meal-or-taxis-20260403-0648). Free Basic Electricity is the clearest test of whether the policy delivers on affordability. [Research by the Public Affairs Research Institute](https://pari.org.za/wp-content/uploads/2025/06/20250617_affordabilityDIGIsingles.pdf) (PARI) finds that the current 50 kWh a month is not enough for households that rely on electricity for cooking, heating and other essential services. The Electricity For All campaign calls for 350 kWh per household per month, above the 200 to 300 kWh the government has proposed, and for a more universal approach to access. Getting FBE to the households that need it is a serious challenge. FBE targets indigent households, which municipalities identify and register using their own eligibility criteria and means tests. This means households struggling to afford electricity but not registered as indigent may not receive the benefit. The government has proposed a centralised national indigent register to improve how it identifies eligible households. Still, the draft EPP does not clearly explain how the new system would identify and reach households currently missing from municipal registers. Funding is another concern. Minister Ramokgopa says [National Treasury provides about R21 billion a year for FBE](https://www.ecr.co.za/news/news/ramokgopa-proposes-direct-free-electricity/), but that the money goes to municipalities as part of general allocations and many redirect it to other spending. He has said [only about 400,000 of the 2.5 million households it could support receive the benefit.](https://www.moneyweb.co.za/moneyweb-radio/safm-market-update/ramokgopa-on-what-sas-first-electricity-pricing-policy-change-in-17-years-aims-to-achieve-and-how/) That means just 16% are getting the FBE support. The Electricity For All campaign wants the final policy to protect affordability, substantially expand FBE, improve accountability for public funding, reform municipal electricity financing and increase public investment in renewable energy. As the policy moves towards finalisation, questions remain about how it will keep electricity affordable for households. How will a larger Free Basic Electricity allocation be funded within the existing budget, and how will it reach the households that need it? And what will protect households if electricity prices continue to rise? > **Alia Kajee, Senior Campaigner at 350.org South Africa, says,** _“South Africa’s changing electricity system presents an opportunity to rethink how electricity is priced and delivered. Greater transparency is an important step, but it is not enough. We need an electricity pricing policy that ensures people can access the electricity they need to live, participate in the economy and live with dignity. Renewable energy should be part of that conversation. If we are serious about expanding affordable access, we should be looking at how renewable and decentralised energy can reach communities that remain underserved by the grid, while also expanding Free Basic Electricity and putting stronger protections in place for households that cannot afford to pay.”_ **ENDS\*\*\*** --- **For media enquiries, contact: **Boitumelo Masipa** Digital & Communications Specialist [350Africa.org](http://350africa.org) +27 81 452 9096