Eskom CEO
Johannesburg – Eskom CEO Dan Marokane has exposed a massive shortfall in South Africa’s social safety net, revealing that while nearly 10 million households qualify for free basic electricity, just 2 million are getting it – leaving millions in the lurch as soaring power prices push families deeper into energy poverty.
This stark admission, shared during a recent interview with Newzroom Afrika, shines a harsh light on a system that’s failing the country’s most vulnerable. Marokane pointed out that the free basic electricity programme, meant to ease the burden on low-income homes, is stuck in the past. Set about 15 years ago at 50 kilowatt-hours per month per household, the allocation no longer covers modern needs like charging phones or running a small fridge – essentials that have become part of daily life for many. “There are about 10 million households that are classified as indigent in terms of their being eligible to receive free basic electricity. Only two million of those are actually receiving it,” Marokane explained, highlighting an eight-million-household gap that’s not just a statistic but a daily struggle for countless families.
The revelation ties directly into broader worries about affordability. Last month, Electricity and Energy Minister Kgosientsho Ramokgopa didn’t mince words, calling the cost of electricity “unsustainable” and a key driver of energy poverty across the nation. “We are revising the electricity pricing policy to address the issue of the cost of electricity. It’s unaffordable. I mean, it’s dealing a major blow to the disposable income of households,” he said during a public address. For many, the tough choices boil down to basics: a loaf of bread for the kids or topping up prepaid electricity tokens to keep the lights on. Ramokgopa warned that without urgent changes, South Africa is teetering on the edge of a full-blown energy poverty crisis, where even the poorest can’t afford the power they need to survive.
The Roots of the Problem: An Outdated Safety Net and Hidden Barriers
Free basic electricity kicked off in 2003 as a lifeline for indigent households – those earning below a certain threshold, often verified through municipal indigent registers. In theory, qualifying families get 50 units monthly at no cost, enough for lights, a TV, and a radio back then. But fast-forward 22 years, and that amount falls short. A typical low-income home now uses closer to 100-150 units just for essentials, experts say, leaving folks dipping into meagre wages for the rest.
Why the huge gap? Marokane broke it down simply: awareness is low, registration processes are clunky, and some municipalities drag their feet on updating lists. In rural areas or informal settlements, where poverty bites hardest, people might not even know they qualify – or fear the paperwork will expose them to other hassles. Take the Eastern Cape or Limpopo, where over 40% of households scrape by on social grants; here, the disconnect means kids study by candlelight while billions in aid go unused.
Eskom’s pushing for a rethink. “So there’s a gap there of some eight million households that are not receiving the free basic electricity that is allocated to them. We need to solve that problem so that, in the first instance, they get what the government provides for them,” Marokane urged. He called for bumping up the quantum – maybe to 100 units – to match today’s realities. This isn’t just talk; it’s tied to Eskom’s turnaround plan, which includes digitising registers for faster payouts and partnering with social development departments to auto-enrol grant recipients.
Ramokgopa’s Wake-Up Call: Unsustainable Tariffs Fuel Energy Poverty
Minister Ramokgopa’s blunt talk last August hit home for millions feeling the pinch. Electricity prices have skyrocketed over 600% since 2007, outpacing wages and inflation by miles. A single municipality hiked tariffs by 18% this year alone, turning power from a right into a luxury. “For many families, the choice comes down to buying a loaf of bread or replenishing electricity units,” Ramokgopa noted, painting a picture of desperation in townships where blackouts – whether from load shedding or empty meters – mean no cooking, no charging, and no cooling in scorching summers.
Energy poverty isn’t abstract; it’s families skipping meals to pay bills or risking health with unsafe alternatives like paraffin lamps that cause deadly fires. In Gauteng’s informal areas, for instance, one in three homes reports going without power for days at a stretch. Ramokgopa’s ordered a full tariff review, aiming to cap hikes at inflation levels and introduce tiered pricing that shields the poor. But change is slow – the next round of adjustments hits in April 2026, and unions warn it’ll still sting without subsidies.
Illegal Connections: Eskom’s Billion-Rand Headache Straining the Grid
Marokane didn’t stop at the free electricity shortfall; he zeroed in on another thief in the night – non-technical losses from illegal connections and meter tampering. These sneaky bypasses cost Eskom a whopping R22 billion yearly nationwide, with Gauteng alone bleeding R7 billion. “We argue that the number needs to be increased to ensure that people who are indigent are not forced into finding other ways of accessing electricity. Because we want to focus on the illegal connections. We want to focus on those who are buying illegal tokens. That revenue loss from an Eskom perspective is significant,” he stressed.
Picture this: in Soweto or Alexandra, folks desperate for light drill into cables or buy “ghost” tokens from street vendors, pocketing the cash while Eskom foots the bill. It’s not just lost money – these hacks overload transformers, sparking fires that kill dozens yearly and trigger unplanned outages. Eskom’s clocked 640,000 such illegal spots, mostly in high-density areas where poverty and poor infrastructure collide. In winter, it worsens: overloaded lines cause blackouts just when heating’s crucial.
Eskom’s fighting back hard. Since January 2025, they’ve yanked over 35 illegal transformers in Gauteng, aiming to clear 2,843 connections daily through March 2026. Tech’s helping too – smart meters that detect tampering and drone patrols spotting hot wires. But Marokane admits it’s a cat-and-mouse game: for every bust, desperation breeds more. Linking this to free electricity makes sense – give folks their due units, and fewer turn to crime.
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