Sanedi exec floats idea of zero-rated electricity as affordability concerns grow

Amid growing concern over the affordability of electricity for businesses and households, the head of the energy secretariat at the South Africa National Energy Development Institute (Sanedi) has floated the idea of including electricity in the list of products zero-rated for value-added tax (VAT). Listing the price of electricity and load reduction as the two most pressing matters facing the electricity sector at the start of 2026, Sanedi’s Professor Sampson Mamphweli listed the prospect of a VAT zero-rating as one of several interventions to consider.
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Creation of ‘competitive’ electricity, logistics markets key next priorities for Government …

Implementing reforms in the electricity and logistics sectors to facilitate the establishment of “commercially viable, competitive markets in these network industries”, has been identified as a key priority for the next phase of the Government Business Partnership. In a statement published following a meeting of the partnership hosted in Pretoria by President Cyril Ramaphosa on January 27, it is stated that such markets would be “essential to mobilising the additional investment required for growth”.
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