“Eskom is owed about R78bn by municipalities and municipalities are owed about R349bn by various categories of customers — it is individual households, businesses, it is also government,” he said.
“It is important we protect everyone but also ensure we protect poor households, those who genuinely can’t afford [to pay] because of economic constraints. They don't have the means and the ability to pay their monthly account.”
Steps were being taken to ensure the more than 8-million households entitled to free basic electricity receive it.
“As the ministry, we have been engaging some of the innovations led by the private sector and we found an innovation we think can be the best template to help us resolve this question and this has been tried and tested in about three municipalities,” he said.
“As the cost of electricity has increased almost 400% in the past 10 years, it was important to find innovative solutions to address this challenge.
“Middle-income households were also experiencing severe pressure. It is important that we are able to provide relief to those households and not just the protection of the poor but everyone across the board.
“I made a point that we want to achieve two things with the electricity pricing policy. The first is to ensure electricity is affordable to low income households and the second is to make sure it is cost-effective for all customers.”
TimesLIVE
More than 10-million households qualify for free basic electricity but only 2-million benefiting: Ramokgopa
Image: Masi Losi
More than 10-million households qualify for free basic electricity but only 2-million are benefiting.
Energy and electricity minister Kgosientsho Ramokgopa said this was due to “challenges” in municipalities regarding the rate at which they registered the indigent.
“Municipalities are receiving this grant. It is important that we resolve this question so we are able to protect the poor,” he told a media briefing on Monday.
On Eskom, he said the utility didn't have a generation problem but was experiencing reticulation problems, mainly in municipalities.
“It is an area that requires urgent attention.”
Ramokgopa said discussions had been held with the South African Local Government Association on protecting the interests of municipalities and those of Eskom.
Now Eskom shoots the lights out
“Eskom is owed about R78bn by municipalities and municipalities are owed about R349bn by various categories of customers — it is individual households, businesses, it is also government,” he said.
“It is important we protect everyone but also ensure we protect poor households, those who genuinely can’t afford [to pay] because of economic constraints. They don't have the means and the ability to pay their monthly account.”
Steps were being taken to ensure the more than 8-million households entitled to free basic electricity receive it.
“As the ministry, we have been engaging some of the innovations led by the private sector and we found an innovation we think can be the best template to help us resolve this question and this has been tried and tested in about three municipalities,” he said.
“As the cost of electricity has increased almost 400% in the past 10 years, it was important to find innovative solutions to address this challenge.
“Middle-income households were also experiencing severe pressure. It is important that we are able to provide relief to those households and not just the protection of the poor but everyone across the board.
“I made a point that we want to achieve two things with the electricity pricing policy. The first is to ensure electricity is affordable to low income households and the second is to make sure it is cost-effective for all customers.”
TimesLIVE
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