SA electricity prices rose 907% since 2007, Minister Ramokgopa reveals at policy briefing

South Africans are feeling the pinch at the plug, with new data showing that electricity prices have surged by a staggering 907% since 2007. This massive hike dwarfs the national inflation rate, which sat at roughly 150% over the same 17-year period.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa addressed the media on 18 August 2026 to tackle this disparity. He warned that the current cost of power is placing an unbearable strain on both family budgets and corporate balance sheets across the country.

Outdated Pricing Meets Modern Needs

The government's strategy for setting power rates has not been updated since 2008. In the years since, energy habits have changed dramatically, especially in informal settlements where appliances like kettles, fridges, and smartphones are now standard necessities.

To help those most affected, the Department is proposing a major boost to Free Basic Electricity. Eligible households currently getting 50kWh per month could see their free allocation jump to as much as 300kWh.

Fixing the Municipal Money Leak

Dr Ramokgopa highlighted a major flaw in the current system where municipal grants meant for the poor were often swallowed by general administrative costs. The new plan aims to use digital tools and national databases to ensure relief reaches the right people directly.

Local municipalities will also face stricter rules, including a requirement to perform cost-of-supply studies. They must provide itemized, transparent bills so consumers know exactly what they are paying for as the country moves toward a five-year transition for tariffs.

Winter Woes and Efficiency

The high cost of energy has even turned basic appliances into luxury items for some. Recent viral content has highlighted the massive expense of running high-wattage oil heaters, sparking a wider national debate on how to stay warm without breaking the bank.

Officials emphasized that the proposed changes to free power allocations will be covered by existing Treasury funds. This means the expansion of the social safety net should not require additional taxpayer money to implement.