Ramokgopa to review electricity prices: 'We're stuck between rock and hard place' – analyst
The review will engage crucial stakeholders, including Eskom and Nersa, to develop a balanced and fair solution to expensive electricity.
Bright lightbulb, electricity. Image: Pexels from Pixabay
Bongani Bingwa interviews Matthew Cruise, an energy expert at Forest Energy.
Listen below.
Dr Kgosientsho Ramokgopa, the Minister of Electricity and Energy, has unveiled a significant overhaul of South Africa's electricity pricing system.
This review is designed to address the affordability crisis that has left many households struggling to maintain access to electricity.
The objective is to establish more equitable tariffs that allow even the most vulnerable families to keep their homes illuminated.
Ramokgopa's announcement follows recent protests in Johannesburg against a steep R200 surcharge on pre-paid electricity.
The review will engage crucial stakeholders, including Eskom and Nersa, to develop a balanced and fair solution.
"It is welcomed news, especially for the poorest of the poor households."
- Matthew Cruise, energy expert – Forest Energy
However, Cruise highlights that businesses and middle-income users will bear the brunt of rising electricity costs.
He describes the situation as 'being stuck between a rock and a hard place', indicating the difficulty in finding an ideal pricing structure.
Eskom argues that current electricity prices do not reflect the actual costs they incur.
Cruise points out South Africa has grappled with above-inflation price increases for the past 15 years, and that this is likely to continue.
"I would prefer to see a pricing structure that is better for businesses and households and the government find other ways of funding the repairs that are needed."
- Matthew Cruise, energy expert – Forest Energy
Scroll up to the audio player to listen to the interview.