It is a tough time to be in South Africa trying to keep the lights on. Across the country, households are feeling the squeeze as electricity costs continue to rise. That’s why we are calling on Government to expand the FBE grant to 350 kWh per month with publicly financed renewable energy. However, most of us don’t know the ups and downs of electricity pricing. In this article, we unpack the proposed changes to electricity pricing, what they could mean for ordinary South Africans, and explore how public investment in renewable energy could help lower electricity costs. On 29 July 2026, Cabinet approved the publication of the Revised Electricity Pricing Policy (REPP) and a draft Electricity Sector Market Transformation Position Paper for public comment. Government presents these reforms as a step toward a more transparent and competitive electricity sector. While officials frame this as a major step forward, there is a lot to unpack. We need to understand what is being proposed and what it could mean for energy affordability and energy justice. We are concerned with electricity prices, but we are most concerned with energy access, climate justice, and ensuring that every person in South Africa can access safe, reliable, and affordable energy. Understanding tariff unbundling For many years, electricity tariffs appeared as a single price, making it difficult for consumers to understand what they were actually paying for. Cabinet argues that one of the key features of the revised pricing policy is greater tariff transparency through the unbundling of electricity costs into separate components: generation, transmission, distribution and retail activities. When you pay for electricity, the charges may include: Energy charges This is the cost of the electricity you use, measured in cents per kilowatt-hour (c/kWh). It covers the costs of generating electricity and operating power stations. Network charges These charges pay for the transmission and distribution infrastructure, including power lines, transformers, substations, maintenance, and system operations that deliver electricity to homes and businesses. Capacity-related charges Recent tariff reforms have introduced separate charges intended to help recover the cost of maintaining sufficient capacity to meet demand, regardless of actual energy consumption. Social and public-interest support mechanisms This means using electricity pricing to help people who need it most. It includes helping poorer households pay for electricity, extending access to rural communities, and supporting programmes like Free Basic Electricity. Eskom is also introducing ‘Easy Electricity’ purchase options. These aren’t new prices, but voluntary ‘packages’ designed to make budgeting easier for prepaid users. Eskom says this option will allow customers to choose electricity amounts, measured in kWh, rather than rand values when buying prepaid tokens. What the draft pricing reforms are intended to do The revised pricing policy forms part of broader electricity sector reforms following the Electricity Regulation Amendment Act, 2024, and Eskom’s restructuring. The proposed reforms seek to ‘modernise’ the electricity sector and create a more competitive market environment. Government says the reforms aim to: Increase transparency Tariffs will be unbundled and allocated across generation, transmission, distribution, and retail activities. Enable greater competition In simple terms, the government wants to create an electricity market where more companies can generate and sell electricity, rather than relying mainly on Eskom. The hope is that greater competition will lead to a more efficient and reliable electricity system. Attract investment Government hopes that new regulatory rules and cost-reflective pricing will encourage private investment in new electricity generation and network infrastructure. Cost-reflective pricing means charging electricity customers a price that reflects the actual cost of supplying electricity, rather than keeping prices low through subsidies or cross-subsidies. Supports virtual wheeling The reforms would make it easier for electricity generated in one place to be delivered to customers somewhere else using the existing electricity grid. This means people and businesses could buy electricity from a wider range of producers, even if they are not located nearby. The affordability crisis remains: why Free Basic Electricity needs urgent reform The proposed changes to South Africa’s electricity system could bring benefits, but they won’t automatically guarantee affordable electricity for low-income households. In several countries, governments have found that even where competition increased and private investment flowed into the sector, low-income households continued to struggle with rising prices and energy poverty. In some cases, governments had to step in by introducing additional subsidies, social tariffs, price protections, or debt-relief measures to protect vulnerable consumers. Many South Africans already struggle to afford electricity. Unless government provides support for low-income households, the proposed changes could leave many families behind and make energy poverty even worse. Free Basic Electricity (FBE) is one of the main ways government helps ensure that low-income households have access to electricity. It is designed to help people who need it most, including pensioners, unemployed people, single-income households, and families surviving on very little to zero income. Experts estimate that around 10 million households qualify for the programme, yet only about 2 in every 10 eligible households actually receive it. Many organisations, researchers, and community groups agree that South Africa’s Free Basic Electricity programme needs to be expanded. We are calling on government to increase Free Basic Electricity from 50 kWh to 350 kWh per month. This is the minimum amount a household needs to live with dignity—to keep the lights on, safely cook and store food, heat water, and even run a small business from home to generate an income. Today, many families spend more on electricity than they do on basic foods like maize meal or bread. Expanding Free Basic Electricity would help ease this burden and ensure more households can meet their basic needs. These are the realities that should shape South Africa’s electricity policies. The draft pricing reforms are now open for public comment. This is an opportunity for communities, workers, faith groups, civil society organisations, and ordinary South Africans to have a say in the future of our electricity system. Electricity is more than a service we pay for. It keeps food fresh, powers schools and clinics, creates jobs and livelihoods, and helps families live with dignity. As South Africa reshapes its electricity system, the real question is not only how the market should work, but who it should work for. Join the #FreeBasicElectricity campaign community and work alongside organisations, community leaders, and activists to help shape, strengthen, and grow the campaign for affordable electricity. The post Changes to Our Power: What South Africa’s New Electricity Pricing Reforms Mean for Us appeared first on 350.