Immediate Release | 15 July 2026
South Africans have already shown they can solve the country’s electricity crisis themselves. Millions of households and businesses have invested in rooftop solar, private generation and backup systems, despite government, not because of it.
Now government must finish the job by allowing genuine competition in electricity generation and supply.
As part of its Cut the Cost of Living campaign, Free SA is calling for three practical reforms that would immediately put downward pressure on electricity prices while improving energy security:
- Expand competition in electricity generation and retail.
- Remove barriers to rooftop solar adoption.
- Allow municipalities to procure electricity freely from competing suppliers.
South Africa has made important progress through the Electricity Regulation Amendment Act, which lays the foundation for a competitive electricity market and an independent transmission system. These reforms deserve recognition. However, consumers have yet to experience the full benefits because implementation remains slow and electricity markets remain heavily constrained.
Despite significant private investment in renewable energy over the past few years, many households and businesses still face excessive regulatory hurdles, uncertain municipal rules, limited wheeling opportunities, and electricity tariffs that continue to rise faster than inflation.
“The lesson of the past few years is clear,” said Gideon Joubert, spokesperson for Free SA.
“Whenever South Africans were allowed to compete with monopoly electricity generation, they delivered faster, cheaper and more reliable power. Government should stop treating consumers as captive customers and start treating them as participants in an open market.”
International evidence consistently shows that greater competition in electricity markets encourages investment, improves efficiency and places downward pressure on long-term electricity prices. Likewise, expanding distributed generation, particularly rooftop solar, can reduce pressure on the national grid while improving resilience against future supply disruptions, provided the regulatory framework enables rather than obstructs participation.
Free SA believes municipalities should also have far greater freedom to purchase electricity from the most affordable and reliable suppliers instead of remaining dependent on a single dominant provider. Municipal procurement should focus on securing the best value for residents rather than preserving outdated monopolies.
The organisation also calls for the removal of unnecessary obstacles facing rooftop solar adoption. Households and businesses that invest their own money in generating electricity should not be discouraged by inconsistent municipal policies or excessive administrative burdens. Instead, government should encourage more South Africans to become producers of electricity, strengthening both the grid and household finances.
“Our electricity system should work like every other successful market,” Joubert added.
“Competition drives prices down, rewards innovation and gives consumers choice. Monopoly drives prices up and leaves ordinary South Africans with fewer options.”
Free SA’s proposal does not require massive new government spending. Instead, it requires government to step back where markets can work better, creating clear rules, ensuring fair competition, and allowing private investment to expand affordable electricity supply.
Lower electricity prices would not only reduce household expenses but also lower production costs for businesses, making South African goods more competitive and encouraging investment and job creation.
South Africans have already demonstrated that they are willing to invest in solutions. Government should now remove the remaining barriers that prevent competition from delivering cheaper, cleaner and more reliable electricity for everyone.
Ends.
Media enquiries:
Anneke Burns
Free SA Publicist
071 423 0079
About FREE SA:
At the Foundation for Rights of Expression and Equality (Free SA) we are committed to empowering South Africans to have their voices heard. In a true democracy, every opinion counts, and we ensure your voice resonates where it matters most: in Parliament, in public policy, and in the laws that shape our country. From advocating for democracy and equality to holding the government to account, we stand with you to demand transparent, responsive, and fair governance that serves its people.
Visit www.freesa.org.za