Question NW1746 to the Minister of Public Enterprises

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21 September 2020 - NW1746

Profile picture: Singh, Mr N

Singh, Mr N to ask the Minister of Public Enterprises

(1) Whether his department and/or the entities reporting to him currently provide free basic electricity under programmes other than the Free Basic Electricity programme; if not, why not; if so, (a) to whom and (b) what are the relevant details; (2) whether the installation and maintenance of electricity prepaid meters would be (a) subsidised or (b) free under certain parameters; if not, why not; if so, (i) under what parameters and (ii) what are the relevant details; (3) whether his department and/or the entities reporting to him prescribe electricity tariffs and rates to municipalities in order to ensure that the most vulnerable and indigent communities receive free basic electricity; if not, why not; if so, (a) in what manner and (b) what are the relevant details?

Reply:

(1) No the Department of Public Enterprises and its entities do not provide free basic electricity under programmes other than the Free Basic Electricity (FBE) programme.

(1)(a) Not applicable (1)(b) Not applicable

(2)(a) Under the FBE programme, installation and maintenance of electricity prepaid meters is not subsidised.

(2)(a)(i) and (ii) Not applicable

(2)(b)(i) and (ii) The installation of electricity prepaid meters is free under the Government’s Integrated National Electrification Programme (INEP). INEP is funded by the Department of Mineral Resources and Energy as per the Division of Revenue Act, 2013 (Act No.2 of 2013) schedule 6.

Eskom maintains prepaid electricity meters. Eskom has a maintenance budget for repairs and maintenance for its infrastructure and this is allocated from the tariff.

(3) Eskom does not prescribe electricity tariffs and rates to any of its customers but charge all its customers tariffs approved by the National Energy Regulator of South Africa (NERSA). The Electricity Regulation Act prohibits Eskom from charging its customers any other tariffs other than those approved by NERSA.

(3) (a) Not Applicable

(3) (b) Not Applicable