According to the proposed government policy, millions of low-income households in South Africa may receive significantly more free electricity monthly. The plan is to increase the allocation norm from the current 50 kWh to a level of 200 to 300 kWh.
Energy Minister and Electricity Minister Kgosientsho Ramkgoppa stated that the government is considering this increase as part of the review of the Free Basic Electricity (FBE) program, but emphasized that a final decision has not yet been made, and the proposed norm is not yet a guaranteed right.
This proposal emerged in Ramkgoppa's written responses to parliamentary inquiries regarding the revised electricity pricing policy, which aims to strengthen the protection of vulnerable and low-income consumers.
The existing FBE norm provides each eligible household with 50 kWh per month. Ramkgoppa reported that the government is studying the possibility of raising this norm to a range of 200 to 300 kWh. He clarified that this is only a proposal for consideration, not an already implemented right.
It is not yet determined how many households will be able to benefit from this increase. Ramkgoppa explained that the number of beneficiaries will depend on the final identification and registration of suitable households, as well as on the measures adopted for financing and implementation.
Data indicates that out of approximately 2.8 million identified needy households, only 1.7 million have benefited from free basic electricity. Ramkgoppa cited several reasons why eligible households are not receiving full support.
These include gaps in identification and registration, limited municipal capacity, and inconsistencies in administration and maintenance of needy registries. Furthermore, he noted that municipalities redirected funds allocated from the National Treasury to address other urgent financial and service delivery tasks.
The revised pricing policy is intended to ensure a transparent tariff structure, proper distribution of electricity costs, and regulatory oversight by the National Energy Regulator of South Africa. Nevertheless, Ramkgoppa warned that the impact on individual household bills will depend on final tariff decisions, household consumption, the electricity supplier, and the methods of implementing support measures.
A specific assessment of the net impact on household expenses has not yet been confirmed. He stated that it is premature to claim that the new system will lead to a certain reduction or increase in costs, as the impact must be assessed considering the final policy provisions, applicable tariffs, and social support measures.
In response to specific questions from ANC MP Zama Hanyase, Ramkgoppa indicated that implementation will require coordination between the Department of Energy and Electricity, the National Treasury, the National Energy Regulator of South Africa, and municipalities. These mechanisms are aimed at ensuring the financial sustainability of the power supply industry while protecting the least affluent households from rising energy prices.
Ramkgoppa reported that it is currently impossible to state a precise date for the final approval of the revised electricity pricing policy. Timelines depend on public consultation and the completion of necessary approval procedures. The Cabinet approved the publication of the revised policy for public consultation on July 29, 2026, and the publication took place one day earlier. Ramkgoppa subsequently extended the submission deadline to October 28, 2026.