Millions of indigent households in South Africa may soon receive a significant increase in their monthly allocation of free electricity, potentially rising from the current 50 kilowatt-hours (kWh) to 150 kWh, according to Electricity and Energy Minister Kgosientsho Ramokgopa.
The minister informed Parliament that the department is actively reviewing this benefit to enhance support for poor and vulnerable families, as the rising cost of electricity in South Africa is “unsustainable” and is pushing many families deeper into energy poverty.
Free Basic Electricity Review
The review is part of a wider effort to balance electricity affordability with the need to maintain a stable and financially sustainable power system. The Department of Energy website provides more information on the current policy framework, under which qualifying households receive 50 kilowatt hours of free electricity per month.
Eskom Group Chief Executive Dan Marokane has said that although nearly 10 million households are eligible for Free Basic Electricity (FBE), only about 2 million actually receive it. The minister added that in line with the review of the Electricity Pricing Policy, the Department will review the Free Basic Electricity quantum.
Proposed Increase
Preliminary indications are that the quantum may need to be adjusted upwards to approximately 150 kilowatt hours per month for qualifying indigent households, subject to technical, fiscal and implementation assessment. The Department will also, together with Eskom, National Treasury and the Department of Cooperative Governance and Traditional Affairs, champion a review of the funding mechanism for Free Basic Electricity.
This is necessary to ensure that the benefit is adequately funded, reaches qualifying households and is implemented consistently across municipalities and Eskom-supplied areas. For more information on the current electricity pricing policy, visit the Eskom website.
Some of the key points to note about the proposed increase include:
- 200% increase in free electricity allocation for indigent households
- Potential rise from 50 kWh to 150 kWh per month
- Review of funding mechanism to ensure adequate funding and consistent implementation
The proposed increase is expected to have a significant impact on the lives of millions of South Africans, providing them with much-needed relief from the rising cost of electricity.
