The South African government has launched the public consultation phase for its revised Electricity Pricing Policy (EPP), following the Cabinet’s approval of the draft and against a backdrop of growing concerns about affordability. Published in the Official Gazette on 21 August, the revised version remains open for comments until 20 September, before being referred to NEDLAC, receiving final approval from the Cabinet, and then being published in the Gazette for implementation.

At the heart of the document are several provisions that pave the way for market liberalisation. The EPP aims to allow customers to choose their supplier, whilst ensuring fair access to the grid and transparent, cost-reflective network charges. It provides a framework for the emergence of a wholesale electricity market, whilst protecting consumers from the price volatility that could result. A five-year transition to cost-reflective tariffs, the elimination of discriminatory tariffs between municipalities and the remuneration of prosumers through net-billing should complete the levelling of the playing field.

These measures accompany the restructuring of Eskom – now split into generation, transmission and distribution entities – and the ‘market transformation paper’ published in parallel. The stated aim is twofold: greater transparency for consumers, given that tariffs have soared by more than 900 per cent since 2007, according to Minister Ramokgopa, and a regulatory framework more conducive to the entry of private operators, particularly in the solar sector, at a time when the country is seeking to secure its supply in the long term following years of load shedding.

What this means

for a developer or independent power producer, the combination of guaranteed grid access, transparent grid tariffs and a future wholesale market creates a competitive framework in which privately generated electricity can flow and be sold more freely. This is a pivotal turning point, one to be monitored closely until the final version of the policy is published.

Sources: Engineering News (18/08/2026), Capmad (19/08/2026), Sanews ( 18/08/2026)