Minister of Electricity admits current tariff system is unsustainable

THE Minister of Electricity, Dr Kgosientsho Ramokgopa, has conceded that the price of electricity is not sustainable and has ordered a review of the electricity tariffs. This comes as scores of electricity payers protested over soaring prices in Tembisa and elsewhere, while City Power has extended the registration of poor households for exemption.

- SIYABONGA SITHOLE

Ahead of the ANC NEC meeting at various venues in Gauteng, Ramokgopa revealed that South Africa is on the brink of “energy poverty” as the current cost of electricity is unsustainable, adding that South Africans can expect big changes to prices in the coming months.

“Electricity is unaffordable. We cannot continue along this tariff path. We are getting into a situation here in the country with new dimensions of energy poverty. There are households there, as I speak to you, that will not be able to afford the cost of electricity ... Poor households are being forced to make choices between a loaf of bread and buying prepaid electricity units,” he stated.

Energy expert, Professor Vally Padayachee, reflecting on the soaring prices of electricity, indicated that the rising cost of electricity is concerning as it impacts not only household budgets but also the overall economy.