Ramokgopa Admits No Study on Tariff Pain for Poor Households

Electricity and Energy Minister Kgosientsho Ramokgopa has conceded that his department has not conducted a targeted assessment of how rising electricity tariffs are impacting low-income households, even as South Africans brace for yet another proposed price hike. The admission came in response to parliamentary questions from IFP MP Nompumelelo Mhlongo, who pressed the minister on what measures exist to cushion the poor from escalating energy costs.

Mhlongo specifically asked about the department's assessment of tariff increases on low-income households and small businesses, and what mitigation measures were in place as of August. Ramokgopa's reply was stark:

“The department has not conducted any targeted assessments, however, data analysis has shown that over the years electricity tariff increases have risen higher than the Consumer Price Index.”

For millions of Black South African households still bearing the structural economic scars of apartheid spatial planning and dispossession, this admission is a bitter pill. The cost of basic services continues to climb, while the state admits it has not measured the human toll.

What is the revised Electricity Pricing Policy?

Ramokgopa pointed to the revised Electricity Pricing Policy as the government's primary tool to address rising costs. The policy, approved by Cabinet on 30 July 2026 and gazetted for public comment on 28 August 2026, aims to reduce upward pressure on electricity prices.

The policy document states that the existing framework is “no longer fully aligned with the structure and functioning of the evolving electricity industry.” A revised framework is needed, it argues, to “define clear pricing principles across the value chain, support market outcomes and provide regulatory certainty.”

Under the new policy, tariffs would be based only on efficient and prudent costs. Excessive technical losses, electricity theft, bad debt and other inefficiencies will no longer be recoverable from consumers, Ramokgopa said. The National Energy Regulator of South Africa (Nersa) will benchmark and scrutinise these costs before approving tariffs.

The move towards cost-reflective tariffs will be phased in gradually over five years, a measure the minister says will avoid sudden price shocks. The policy also provides for ring-fencing of electricity revenues, standardised tariff methodologies across municipalities, and free basic electricity and lifeline tariff mechanisms for qualifying households.

How much is Eskom proposing to increase tariffs in 2027?

These assurances come as South Africans face a proposed 8.83% electricity price increase for 2027. Nersa has gazetted the increase, giving the public until 2 October to submit written comments before the regulator makes its final decision in November.

If approved, the increase will take effect on 1 April 2027 for customers supplied directly by Eskom, while municipal customers will face an 8.84% increase from 1 July.

Can energy sector transformation ease cost pressures?

Pressed by EFF MP Lorato Tito on whether energy sector transformation would eliminate cost pressures, Ramokgopa was cautious. He said there could be “no responsible guarantee” that transformation would immediately relieve households.

“Electricity prices are affected by a number of factors, including the cost of generation, the condition of the transmission and distribution networks, municipal surcharges, debt levels, maintenance requirements, fuel costs, and the need to invest in new capacity after many years of under-investment,”

he said.

But the minister rejected the notion that transformation is merely institutional restructuring.

“The objective is to address the structural weaknesses that have contributed to unreliable electricity supply, insufficient investment, constrained grid capacity, and rising system costs.”

What is the government doing to protect vulnerable households?

Ramokgopa acknowledged that ordinary households face serious economic pressure from unreliable electricity and rising costs. He cited the Electricity Regulation Amendment Act as providing the legal framework for a more competitive and transparent electricity supply industry, including non-discriminatory access to the transmission network and the gradual development of a wholesale electricity market.

The department, he said, is pursuing transformation alongside measures aimed at affordability and protection of vulnerable households, including work on Free Basic Electricity, indigent support, distribution sector improvements, and more sustainable approaches to universal energy access.

Why this matters for South Africa's poor

For a country where the legacy of apartheid still dictates who lives in poorly serviced townships and who benefits from economic opportunity, the absence of a targeted study on tariff impacts is more than an administrative gap. It is a policy failure that speaks to whose lives are counted and whose are not.

The minister's own data shows tariff increases have outstripped the Consumer Price Index for years. That means the poor are paying more for a basic service, relative to their income, than any other segment of society. Without a targeted assessment, the state cannot claim to know the true depth of this burden, nor can it design effective relief.

As the public comment window on the 2027 increase remains open, civil society and community organisations have a narrow opportunity to demand more than promises. They must demand that the state measure the pain, and act on it.