Free Basic Electricity: Millions Eligible but Few Benefitin

South Africa’s electricity challenges are not just about loadshedding. Affordability and access remain pressing concerns, particularly for low-income households. Eskom Group Chief Executive Dan Marokane recently noted that while around 10 million households qualify for Free Basic Electricity (FBE), only about 2 million currently receive it.

This leaves millions of households — many in Gauteng’s densely populated townships and informal settlements — without the relief the programme was designed to provide.

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What Free Basic Electricity Was Meant to Do

Introduced in 2003, FBE was designed to help indigent households meet essential energy needs such as cooking, lighting, and heating water. The programme provides a set amount of electricity per household each month at no cost.

But the allocation was set more than 15 years ago. Since then, household energy demands and living costs have changed significantly.

“There are about 10 million households classified as indigent. Only two million of those are actually receiving free basic electricity,” Marokane explained in an interview.

Understanding the Gaps

Several factors contribute to the shortfall in delivery:

• Administrative hurdles: Municipalities oversee FBE access, but outdated registers and bureaucratic delays affect implementation.
• Awareness levels: Some households do not know they qualify or how to apply.
• Infrastructure challenges: Faulty meters, illegal connections, and damaged networks reduce reliable access.
• Policy lag: The original unit allocation has not been updated to reflect current household needs.

In Gauteng, these challenges are compounded by higher urban tariffs and service delivery backlogs in metros like Johannesburg, Tshwane, and Ekurhuleni.

The Cost of Energy Poverty

Electricity and Energy Minister Kgosientsho Ramokgopa recently acknowledged that rising tariffs are “unsustainable” for many households.

“It’s unaffordable. It’s giving a big knock to household disposable income. For most families, the choice is between buying a loaf of bread or topping up electricity units,” he said.

For those who qualify for FBE but are not receiving it, the financial pressure can mean relying on unsafe alternatives such as paraffin stoves and candles.

Eskom’s Broader Concerns

Eskom also faces financial losses from illegal connections and the sale of fraudulent electricity tokens. Marokane says these non-technical losses cost the utility billions each year and place additional strain on the grid.

Expanding access to FBE, he noted, could reduce some of the desperation that drives households to unsafe alternatives while also improving revenue protection for the utility.

Moving Forward

Energy experts suggest several steps to strengthen the programme:

• Update indigent household registers to ensure all eligible families are listed.
• Review and adjust the unit allocation to reflect today’s needs.
• Simplify the application process to speed up access.
• Run awareness campaigns so more households know about the programme.
• Improve coordination between Eskom, municipalities, and national government.

As one Johannesburg-based analyst observed: “The framework is already in place. The next step is making sure it works consistently and fairly for everyone who qualifies.”

Why It Matters for Gauteng

Gauteng remains South Africa’s economic hub but also faces some of its deepest inequalities. In communities like Alexandra, Diepsloot, and Tembisa, affordable electricity could make a meaningful difference to households and small businesses alike.

Access to FBE would not only help families meet daily needs but also reduce reliance on unsafe connections and support township economies.

From Policy to Practice

South Africa has a clear policy on free basic electricity, but implementation gaps remain. Strengthening delivery would help millions of households, particularly in Gauteng, while also contributing to safer, more sustainable energy use.

Bridging the Gap: What Can Be Done

• Check eligibility: If you meet the criteria, apply for FBE through your municipality.
• Stay informed: Learn about how FBE works and share the information with your community.
• Support safe use: Encourage legal, safe connections while advocating for affordable supply.
• Engage constructively: Hold local and national leaders accountable while supporting solutions that benefit everyone.

Electricity is more than convenience — it’s a basic need. By improving access to Free Basic Electricity, Gauteng can help ensure that energy poverty does not continue to hold families back.