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Energy analyst Chris Yelland said 10 million South African households should get free basic electricity. However, the money for this purpose is misappropriated.
On Monday, Electricity and Energy Minister Kgosientsho Ramokgopa said they would review South Africa’s electricity pricing policy to address the electricity affordability crisis.
He highlighted that a growing number of poor South African households cannot afford the rising electricity prices.
“Communities are getting more enraged. People cannot afford electricity. It is really eroding their disposal income,” he said.
He explained that they are working to address the issues related to affordability, pricing, and the tariff structure.
The electricity pricing policy review would be done in partnership with numerous stakeholders, including Eskom and the National Energy Regulator of South Africa (Nersa).
It will also include the South African Local Government Association (SALGA) and other stakeholders.
The review of South Africa’s electricity pricing policy can have a big impact on the electricity tariffs for low-income households.
Yelland told Radio 702 that Minister of Electricity and Energy Kgosientsho Ramokgopa understands that the free basic electricity policy is failing.
Free basic municipal services, including electricity, are provided by the government to poor households at no charge. Poor households can get 50 kWh of free electricity per month.
This amount of electricity is enough to provide basic lighting, basic water heating using a kettle, basic ironing, and a small black-and-white TV and radio.
To qualify for free electricity, households need to be on the lifeline electricity tariff, registered as indigent, or qualify for a pensioner’s rebate on service fees.
Households can’t apply for pensioner rebate or indigent status if they are in arrears with any municipal accounts.
Yelland said 10 million households in South Africa should be getting free basic electricity under the policy. However, this is not happening.
“The money is being transferred to municipalities for this purpose. However, 80% of the indigent households are not getting the free electricity,” he said.
“Municipalities misappropriate the money for free basic electricity for poor households in the full view of the National Treasury and government.”
Yelland said municipalities are using the money earmarked for free electricity on things it was not intended for.
source:Free electricity scandal in South Africa – Daily Investor
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