Question NW4052 to the Minister of Public Enterprises
08 January 2024 - NW4052
Graham, Ms SJ to ask the Minister of Public Enterprises
Whether Eskom has determined the extent to which ghost vending impacts the revenue and financial stability of it and local municipalities; if not; why not; if so; what are the relevant details; (2) Whether any measures are in place to detect and prevent electricity ghost vending; if not, why not; if so, (a) what measures and (b) what are the legal penalties or consequences for individuals or entities involved in electricity ghost vending; (3) Whether Eskom has provided vendor education about the risks and consequences of selling illegally obtained electricity tokens or units; if not, what steps are being taken to raise awareness about electricity ghost vending and encourage consumers to purchase electricity tokens from authorised and reputable sources; (4) Whether there are any technological advancements or innovations being implemented to enhance the security and integrity of electricity token distribution and usage; if not, what is the position in this regard; if so, what are the relevant details; (5) (a) how can consumers protect themselves from inadvertently becoming victims of electricity ghost vending schemes and (b) what action processes are provided by Eskom for communities or individuals who suspect they may be affected by electricity ghost vending activities in their area?
Reply:
According to information received from Eskom:
(1)
Eskom is unable to quantify the ghost vending impact since it is difficult to determine the revenue losses directly associated with illegal sales, as they are done clandestinely.
(2)(a)(b)
Eskom works closely with law enforcement agencies, including the Hawks, to conduct covert investigations on detected or reported illegal vending activities and thereafter tries to locate illegal vending machines, confiscate, and criminally prosecute the perpetrators. On 02 November 2023, the Pretoria High Court granted a preservation order to the amount of R36 million on the property (movable and immovable) belonging to 13 ring leaders of an illegal vending syndicate.
Eskom has recently upgraded its Online Vending System (OVS) to be compatible with Key Revision Number 2 (KRN 2) software and the meters are being converted to KRN 2 applications where the ghost tokens will not be credited by the meters. Furthermore, Eskom is in the process of replacing the current OVS with a new one. The current vending system has been in operation for 16 years and there is a need for a more modern and integrated one.
Eskom conducts meter audits and the customer credit that was not bought through Eskom agents is removed, thereafter the prepaid meter box is disconnected immediately. The customer is then required to pay a minimum fine of R6 052.60.
(3)
Eskom-approved prepaid electricity vending agents are given clear terms and conditions in the service level agreement with specifications on the service scope and control measures. Notifications or warnings are provided regarding the consequence of selling illegally, otherwise the terms and conditions of the contract and service level agreements are enforced.
(4)
(a) Eskom has since decommissioned all officially registered offline Credit Dispensing Units and security modules and migrated to a new centralised OVS. The new Online Vending STS6 security modules have embedded security features that automatically disable a security module after either a certain amount of electricity is sold or after a set duration.
Also, Eskom has recently upgraded the OVS to be compatible with Key Revision Number 2 (KRN 2) software and the meters are being converted to KRN 2 applications where the ghost token will not be credited by the meters. In addition, Eskom is in the process of replacing the current OVS with a new system. The current vending system has been in operation for 16 years and there is a need for a more modern and integrated one. The new system is also expected to have better controls to minimise fraudulent activities.
(b) Eskom periodically runs campaigns to educate customers regarding energy losses and illegal vending is part of this campaign.
Customers are also urged to buy Eskom prepaid vouchers only from legal Eskom national vendors that have their footprint in supermarkets, petrol stations and local shops with registered point-of-sale machines, ATMs, mini markets, mobile apps, and online banking. Customers are encouraged to be vigilant and not be deceived or tempted on social media by unknown people promising big discounts for their purchases. Customers are advised to report incidents of suspected illegal buying of electricity in their areas to the SMS crime line number 32211 or call the Eskom contact centre on 0860037566.
(5)
(a) Customers are informed through campaigns and customer education to buy Eskom prepaid vouchers only from legal Eskom national vendors such as supermarkets, petrol stations and local shops with registered point of sale machines, ATMs, mini markets or mobile apps and online banking and not be deceived and tempted on social media by unknown people.
(b) Customers are urged to report such activities to Crime line number 32211 or call the Eskom contact centre on 0860037566. Eskom also continuously runs campaigns to educate customers about ghost vending.
Remarks: Approved / Not Approved
Ms Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
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