Indigent households in South Africa could soon get up to 150 kilowatt-hours (kWh) of free electricity per month
Image: GCIS
Indigent households in South Africa could soon get up to 150 kilowatt-hours (kWh) of free electricity per month.
Currently, the Free Basic Electricity (FBE) allocation is 50 kWh per month, but Electricity and Energy Minister Kgosientsho Ramokgopa told Parliament that the department is reviewing the benefit to better support poor and vulnerable households.
Eskom Group Chief Executive Dan Marokane has said that although nearly 10 million households are eligible for FBE, only about 2 million actually receive it.
Ramokgopa also warned that the rising cost of electricity in South Africa is “unsustainable” and is pushing many families deeper into energy poverty.
The minister said 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 continues to support the implementation of Free Basic Electricity for qualifying indigent households. Under the current policy framework, qualifying households receive 50 kilowatt hours of free electricity per month," the minister said.
"The Department recognises that the current quantum requires review, given changes in household energy needs, electricity prices and the lived reality of poor and working class households."
He added that in line with the review of the Electricity Pricing Policy, the Department will review the Free Basic Electricity quantum.
"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."
mthobisi.nozulela@iol.co.za
IOL Business