Prepaid power: Are you paying 25% more than you should?

The draft revised policy proposes that Nersa: Develop and implement a standardised pricing framework for electricity vending services within 12 months; Define allowable service fees and commission structures to prevent excessive margins; Establish a monitoring and compliance mechanism to ensure transparency and adherence to the framework; Conduct periodic reviews of fees and commissions to reflect changes in the market and technology; Monitor vendors’ compliance with the pricing and reporting requirements; and Investigate consumer complaints and enforce the framework through penalties or corrective measures where necessary.

Implementation risk Deon Conradie, an expert in electricity pricing, says the policy objective of bringing vendors into the regulatory framework and tightening the regime for resellers is particularly relevant to estates, landlords, body corporates, student accommodation and informal resale arrangements, where the effective price paid by the end user can materially exceed the underlying regulated electricity tariff.

A changing market He adds that the revised EPP is intended to modernise the 2008 policy and align electricity pricing with the structural reforms currently under way in the sector.