Government considers raising free electricity allocation to 200–300kWh - IOL

Electricity and Energy Minister Kgosientsho Ramokgopa says the government is considering increasing the existing Free Basic Electricity (FBE) allocation of 50 kilowatts per qualifying household per month to between 200 and 300 kilowatts, but no decision has been made.

Ramokgopa revealed this when he was responding to parliamentary questions from IFP MP Nompumelelo Mhlongo, who asked how many low-income households are expected to benefit from the proposed measures to be introduced by the revised electricity pricing policy.

Mhlongo had also asked whether an assessment has been made of the impact of the revised pricing framework on household electricity costs and the timeline for finalising the policy.

In his response, Ramokgopa said the policy sought to strengthen the protection of vulnerable and low-income electricity consumers through a review of free basic electricity and the mechanisms for delivering support to them.

“The minister has indicated that the government is considering increasing the existing FBE allocation of 50 kWh per qualifying household per month to between 200 kWh and 300 kWh. This is a proposal for consideration and is not yet an implemented entitlement,” he said.

Ramokgopa also said the number of households that will benefit from the revised measures will depend on the final identification and registration of eligible households, and the arrangements adopted for implementation and funding.

“The department will therefore be able to confirm the number of beneficiaries once these matters have been finalised.”

Cape Argus reported earlier this month that data showed that only 1.7 million of about 2.8 million identified indigent households benefited from free basic electricity.

Ramokgopa was quoted as saying the reasons qualifying households did not receive the full FBE benefit included gaps in the identification and registration of eligible households, limited municipal capacity, and the lack of uniformity in the administration and maintenance of indigent registers.

He had said municipalities diverted allocations from the National Treasury to address other pressing financial and service-delivery priorities.

The minister said the revised policy promoted transparent tariff structures, appropriate allocation of electricity costs and regulatory oversight by National Electricity Regulator of South Africa.

“The proposed review of FBE is intended to strengthen support for qualifying indigent households. However, the impact of the revised pricing framework on individual household electricity costs will depend on the applicable tariff determinations, household consumption, the electricity supplier and the implementation of the relevant support measures.”

Responding to separate questions from ANC MP Zama Khanyase, Ramokgopa said the implementation of the proposed measures would require coordination between the Department of Electricity and Energy, National Treasury, National Energy Regulator of South Africa and municipalities regarding the targeting of eligible households, the delivery of FBE, the design of lifeline tariffs and the monitoring of affordability outcomes. 

“These mechanisms are intended to ensure that the financial sustainability of the electricity supply industry is pursued alongside the protection of households that are least able to absorb rising electricity costs.” 

Ramokgopa further said a definitive date for final approval of the revised electricity pricing policy could not be confirmed at this stage.

“It depends on the consideration of public comments and completion of the required approval processes."

Cabinet approved the publication of the revised policy for public consultation on July 29, 2026.

It was published for public comment a day earlier and Ramokgopa extended the closing date for submissions to October 28, 2026. 

“Following the consultation period, the department will consider the submissions received, undertake any necessary amendments and complete the applicable consultation and approval processes, including National Economic Development and Labour Council and the submission of the final policy to Cabinet for consideration.”