NERSA has approved the National Free Basic Electricity rate of R194.40c per Kilowatt per hour.
This decision is effective as from the 01st of July 2024.
The free basic rate is to compensate Eskom for providing free basic electricity units to an estimated 800,000 qualifying indigent households.
Charles Hlebela, Head of Communications said an amount of 50KW/h is in operation since 2003, and is under review by the Government and various stakeholders.
But Dr Tracy Ledger, Head of the Energy Transition Programme at the Public Affairs Research Institute (PARI), said NERSA approves the FBE rate every year, however Municipalities divert funds for free basic services including FBE, elsewhere.
National Treasury Communications team said about this last year, “in our analysis of the past six audit periods, we confirm Dr Tracy Ledger’s observation that municipalities divert funds for free basic services (including FBE) to other initiatives and operational costs within their municipalities during these audit periods. The table below illustrates that municipal costs are consistently and significantly lower than those provided for in the Local Government Equitable Share (LGES).”
Dr Ledger says upcoming regulatory changes expected to be introduced in the next six months or so, will bring the much needed implementation of the FBE to the poor.
Picture: Government.za