South Africa Publishes Revised Electricity Pricing Policy 2026 For Public Comment

South Africa has published the Revised Electricity Pricing Policy (EPP 2026) for public comment, marking a major step in the restructuring of the country’s electricity sector. The policy was officially released by the Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, through a Government Gazette notice dated August 28, 2026.

The government has provided a 30-day period for individuals, organizations, and other interested stakeholders to submit written comments to the Department of Electricity and Energy. The consultation is expected to provide feedback on the proposed changes before the revised policy moves forward.

EPP 2026 comes at a time when South Africa is changing the structure of its electricity industry. The country is moving away from the traditional vertically integrated electricity model, which was largely dominated by Eskom. Recent legislative changes, including the Electricity Regulation Amendment Act of 2024, are supporting the transition toward a more competitive and unbundled electricity market.

Under the revised structure, electricity generation, transmission, and distribution will operate as separate functions. The framework is designed to support open and non-discriminatory access to the electricity grid while creating greater opportunities for independent power producers and private companies. It also aims to support wholesale electricity trading and increase competition in the sector.

A major focus of EPP 2026 is the development of cost-reflective and transparent electricity tariffs. Over a five-year transition period, tariffs across generation, transmission, distribution, and retail services will be restructured to better reflect actual operating, maintenance, and capital costs.

Electricity licensees will be required to maintain standardized regulatory accounts and conduct cost-of-supply studies approved by the National Energy Regulator of South Africa (NERSA). The government expects this approach to reduce pricing differences and improve financial sustainability while allowing utilities to recover reasonable and efficient costs.

The policy also addresses the growing use of rooftop solar, energy storage, and other forms of embedded generation. Proposed measures include flexible distribution services, clearer billing components, time-of-use tariffs, and net-billing arrangements for consumers who export surplus electricity to the grid.

EPP 2026 further proposes a Central Purchasing Agency to manage legacy power purchase agreements during the transition. At the same time, provisions will remain in place to support low-income households through targeted free basic electricity subsidies.

The revised policy represents a significant change in South Africa’s electricity market and is intended to create a more transparent, competitive, and financially sustainable power sector.