The Democratic Alliance (DA) has called on South Africans to use the public participation process to challenge what it describes as unfair electricity pricing, warning that consumers could face further financial pressure if proposed changes are adopted without stronger protections.
DA spokesperson on electricity and energy Kevin Mileham said South Africans have until September 27 to comment on the Department of Electricity and Energy’s Revised Electricity Pricing Policy.
Mileham urged households and businesses to make submissions before the deadline, arguing that electricity consumers should have a greater say in how tariffs and other charges are determined.
“South Africans are paying too much for electricity, and for once they have an opportunity to influence the rules before the next bill lands,” Mileham said.
The DA’s intervention comes as households and businesses continue to deal with rising electricity costs.
Mileham said electricity tariffs had, over the years, increased faster than many household incomes and repeatedly outpaced inflation.
He argued that consumers should not continue carrying the cost of Eskom’s inefficiencies, legacy costs and financial problems through higher electricity prices.
The DA also wants the country’s electricity pricing framework to reflect changes in the electricity market since the current Electricity Pricing Policy was introduced in 2008.
According to Mileham, the electricity sector has changed significantly, with private electricity generation, rooftop solar, electricity traders, wheeling arrangements and embedded generation becoming increasingly common.
He said the pricing framework should therefore be updated to accommodate consumers who generate some of their own electricity or purchase power from alternative suppliers.
The DA supports what it describes as a competitive electricity market where consumers pay a fair price for the electricity and network services they use.
Mileham warned against pricing structures that could penalise consumers for reducing their dependence on Eskom.
He specifically raised concerns about new fixed and capacity charges, arguing that these should not become a mechanism for recovering inefficient costs from consumers who are using less electricity or generating some of their own power.
The party intends to use the public comment process to push for several changes to the revised policy.
These include a full assessment of the impact proposed pricing changes would have on electricity bills and affordability.
The DA is also calling for strict limits and greater transparency around fixed and capacity charges, as well as fair treatment for households and businesses that have invested in rooftop or other forms of embedded generation.
It wants legacy costs and negotiated pricing agreements to be dealt with transparently and within clearly defined timeframes.
The party is further calling for an independent assessment of whether the National Energy Regulator of South Africa (NERSA) has sufficient capacity to regulate what is expected to become a more complex and competitive electricity market.
Mileham said the debate should not be restricted to Eskom, NERSA, government and large industrial users.
“This should not be a debate between Eskom, NERSA, government and large industry alone,” he said.
“Every South African electricity consumer has the right to have a say.”
The DA said consumers should use the opportunity to influence the policy before it is finalised, rather than waiting for decisions to be implemented and reflected on electricity bills.
Written submissions must be sent to the Director-General of the Department of Electricity and Energy, for the attention of Joseph Maraba, by September 27.
Comments can be emailed to EPP.Comments@dee.gov.za or delivered to Matimba House, 192 Visagie Street, corner Paul Kruger Street, Pretoria.
Submissions can also be posted to Private Bag X96, Pretoria, 0001.
The department requires submissions to include the name and contact details of the individual or organisation making the comment.
Mileham said the public participation process provided consumers with an opportunity to raise concerns before the new electricity pricing rules are finalised.
“South Africans are often told what electricity will cost after the decision has been made,” he said.
“This time they have a chance to speak up before the rules are finalised.”
