FREE electricity? Where is it? South Africa’s power problems
Approximately 10 million homes are eligible for free basic electricity, but due to poor management by local authorities, only about two million actually receive it.
The electricity crisis in the country keeps escalating, with around 10 million households eligible for free basic electricity.
However, only about two million actually receive this benefit due to poor management by local authorities. South Africa’s Electricity Minister, Kgosientsho Ramokgopa, has criticised municipal mismanagement for preventing millions of households from accessing free basic electricity.
Ramokgopa points out issues
In a recent update on the Energy Action Plan (EAP), Minister Ramokgopa pointed out the problems with South Africa’s electricity pricing policy, as reported by My Broadband. Markedly, it is not the first time he has commented on these issues.
Ramokgopa emphasised the importance of reassessing the nation’s electricity pricing policy, especially as families face growing challenges from rising energy costs. Over the last 10 years, electricity rates have increased well beyond the general inflation rate. They have risen a significant five times since 2008.
Free electricity
The government has started a program to help low-income South African households by giving them free basic services, e.g. electricity, to ease the financial burden for them.
Poor households can receive 50 kWh of electricity each month at no cost. This amount is sufficient for essential needs. This includes basic lighting, heating water with a kettle, doing some ironing, and powering a small black-and-white TV and radio.
To qualify for this free electricity, households must be on the lifeline electricity tariff, registered as indigent, or qualify for a pensioner’s discount on service fees. Households with any municipal accounts in arrears will not qualify.
The issue is that many households do not receive this benefit despite qualifying for it.
Municipalities mismanage funds
According to Ramokgopa the problem lies with the execution, specifically execution at the level of municipalities, and not with funding.
“There is no reliable system that makes it possible to extend that benefit to households that qualify.”
Electricity Minister Kgosientsho Ramokgopa
He added that in some cases, a system is in place, but its management is inefficient. In addition, he stated that the government must find a more reliable way to ensure households receive the free electricity benefit.
‘Municipalities receive these grants, but they misappropriate the money, redirecting it to other municipal expenses’, said Ramokgopa as reported by The Electricity Hub.