South Africa’s Minister for Electricity Kgosientsho Ramokgopa has indicated that the current 50 kilowatt-hour (kWh) monthly free electricity allowance for poor households is outdated and under review.
Speaking at the National Assembly on Wednesday, Ramokgopa said that the allowance has remained unchanged for more than two decades and no longer reflects modern living conditions.
He explained that electricity consumption patterns have evolved, noting that many low-income households now own appliances such as televisions, electric kettles, and refrigerators.
“Twenty-three years later, that number is no longer relevant because the profile of consumption has changed. An average poor household now has a television; some have bought an electric kettle, and they have refrigerators, so consumption has changed. As part of our intervention, we are revising that number,” he said.
The proposed adjustment will form part of a new electricity pricing policy expected to be released in the coming weeks.
Ramokgopa also highlighted that more than 1.6 million households in South Africa still lack access to electricity. He said the new policy will propose diversifying primary energy sources to reduce costs.
However, he cautioned that any increase in the free basic electricity allowance must not place additional strain on the national fiscus.
While confirming that the allowance will be increased, Ramokgopa did not provide specific figures, stating that details will be announced once the policy is finalized.
Meanwhile, from 1 April 2026, households in South Africa that receive electricity from Eskom will face an 8.76% price increase, with a follow-up tariff hike of 9.01% for municipal customers slated for 1 July 2026.
Altogether, the incoming hikes will see some South Africans paying around 28% more for electricity each month due to fixed-fee increases, even as the cost per unit of electricity decreases.
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