Calls for special electric mobility rates to support fleet operators in South Africa

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Unlike a growing number of countries on the African continent, South Africa does not have many incentives and programs to catalyze the adoption of electric mobility. While countries such as Malawi, Zambia, Rwanda, Mauritius and Ethiopia have introduced comprehensive measures, such as removing import duties and taxes on electric vehicles along with associated charging infrastructure, South Africa is yet to offer anything on a similar scale. In fact, imported electric vehicles pay more import duties and taxes in South Africa compared to their ICE equivalents.

Kenya is similar to South Africa in that it has not really introduced measures to accelerate the adoption of cars, trucks, etc. electrical. However, Kenya has introduced something quite useful: a special electricity tariff for electric vehicles. Kenya’s electric mobility tariff sees users billed KShs. 16/kWh ($0.12/kWh) in peak hours and KSh. 8/kWh ($0.06/kWh) during off-peak hours compared to standard commercial rates which are closer to KSh.20/kWh ($0.15/kWh) and residential rates which are closer to KSh. 30/kWh ($0.23kWh). These energy cost savings are a big help, especially for people who travel long distances every day.

We have some updates from Kenya Power on the e-mobility tariff contributions to the company’s revenue to provide more background on this e-mobility tariff program. Kenya Power says total electricity revenue increased by KShs. 18.96 billion to KSh. 238.24 billion while total sales grew by 12% from 11,403 GWh in the previous year to 12,777 GWh. Kenya Power says this growth was also supported by enhanced revenue protection initiatives the company implemented during the year. What I found interesting about these results was the contribution of electricity sold to players in the electric mobility sector, which increased from KShs. 65.6 million in 2025 at KShs. 185.3 million in fiscal 2026. Of course, these sales come from customers who are officially registered on Kenya Power’s e-mobility measurement platform. Much more would have been sold to households and companies that have cars, bicycles and electric trucks but that are not yet registered in the special rate.

There is another recent positive development in Kenya. Previously, consumers receiving the electric mobility tariff were limited to 15,000 kWh per month, which was a very low limit for operators of electric bus fleets or motorcycle battery swapping stations. The good news is that the Kenyan government has removed that limit, meaning fleet operators can greatly benefit from this new fee. I was thinking that since South Africa has been slow to introduce comprehensive incentives like Kenya, low hanging fruit for South Africa would be to follow Kenya and also introduce a special tariff for electric mobility. Turns out I wasn’t the only one thinking about it. Last week, Gideon Neethling of Golden Arrow Bus Services (GABS) highlighted the importance of viable electricity rates for fleet operators. Gideon was speaking during a panel discussion at the Africa Electric Mobility Week Forum held last week in Stellenbosch, South Africa.

Golden Arrow Bus Service (GABS) has been in operation for 160 years and has a fleet of 1,200 buses (120 currently electric, the rest diesel) and a total of 2,500 employees. GABS has been operating a fleet of electric buses for some time now and is looking to add more to its fleet, including 40 electric buses that should join the fleet in the near future. Gideon said energy savings from the 120 electric buses in its fleet had helped protect its commuters from the sharp rise in diesel prices. Increasing the penetration of electric buses in their fleet alongside a supportive electricity tariff framework would help them further protect their commuters, as well as bringing other massive benefits to the industry as a whole, such as reducing carbon emissions and helping South Africa save on foreign currency bills by reducing fuel imports.

Gideon says GABS uses 40% of its electricity during standard rate hours, with the rest of the load during off-peak hours and very little during peak hours. GABS also has a fairly large solar panel installed on its tank. Gideon acknowledged that Cape Town had implemented a “modest” and consumer-friendly increase in lower electricity rates of 7% during peak hours, but GABS does not use much electricity during that time. The City of Cape Town introduced a 9% increase in electricity rates for standard tariffs, and a whopping 25% increase was introduced for the off-peak period in the current financial year. Since this is when GABS does most of its loading, it really feels the pressure. Gideon called for a more supportive electricity rate regime that “Don’t put them out of business.”

With load shedding now a thing of the past, this would be a good time for Eskom, the national electricity utility, to look at special e-mobility tariffs in South Africa, allowing municipalities that source most of their electricity from Eskom to do the same. In a recent update, Eskom reiterated that it had maintained its strongest operational performance in six years, with the year-to-date energy availability factor (EAF) reaching 68.11%, reinforcing progress in restoring energy security and supporting economic growth. Supported by fewer unplanned outages, increased generation fleet reliability and an 80.49% year-on-year reduction in diesel spend, South Africa has achieved more than 500 consecutive days without load shedding. South Africa has recorded 504 consecutive days without load shedding since 16 May 2025, reflecting the cumulative impact of improved fleet performance, fewer unplanned outages, increased generation capacity and reduced reliance on emergency generation resources. Eskom says this milestone demonstrates the sustained progress being made to restore reliability, strengthen energy security and support South Africa’s economic growth and development.

A special e-mobility tariff regime in South Africa that focuses on off-peak periods could help incentivize EV users to charge during off-peak periods, managing demand for grid services. It could also encourage the adoption of electric vehicles in South Africa in general. Eskom could follow Kenya’s model and introduce a special lower tariff for e-mobility across all tariffs (peak, standard and off-peak). All of this could help meet much-needed demand for Eskom at a time when reports show a continued decline in overall electricity consumption in South Africa. Reports show Eskom’s electricity sales fell by more than 6% during the financial year. Eskom could do with more consumption. Encouraging the adoption of electric vehicles could help.