Eskom Targets End to Load Reduction by March 2027 with Massive Smart Meter Rollout and Infrastructure Upgrades
Eskom has rolled out an ambitious strategy to completely phase out load reduction by March 2027, capitalising on the growing stability of South Africa’s electricity grid. The plan, unveiled by Acting Group Executive for Distribution Agnes Mlambo, centres on rolling out smart meters to all 7.2 million customers nationwide, alongside boosting Free Basic Electricity (FBE) access and deploying distributed energy resources. With over 800,000 smart meters already in place, the utility aims to use real-time data to spot illegal connections and cut revenue losses of R30 billion yearly from theft. However, challenges like budget shortfalls, procurement delays, and ongoing vandalism loom large, as highlighted in recent parliamentary scrutiny.
This move comes as Eskom celebrates improved generation performance, with the Energy Availability Factor (EAF) hitting 70% and unplanned outages dropping by 1,201MW year-on-year. While load shedding has eased, load reduction – used to protect overloaded networks in peak times – still affects about 1.69 million customers in 971 feeders, mainly in high-impact provinces like Gauteng, Limpopo, Mpumalanga, and KwaZulu-Natal. By addressing these through tech and community ties, Eskom seeks a safer, more reliable system for all.
Eskom’s Three-Pronged Strategy to Eliminate Load Reduction
Eskom’s Load Reduction Elimination Strategy, launched by Minister of Electricity and Energy Dr Kgosientsho Ramokgopa on 25 September 2025, takes a phased approach over the next 12 to 18 months for the hardest-hit areas. It builds on the Generation Recovery Plan’s successes, focusing on modernising distribution to prevent equipment damage from overloads caused by illegal connections and tampering.
Expanding Free Basic Electricity Access
A key pillar is registering more indigent households for FBE. Of 2.1 million eligible homes in Eskom-supplied areas, only 485,000 currently benefit. This expansion aims to reduce theft incentives amid rising costs, needing close work with municipalities and government. By making legal power more accessible, Eskom hopes to ease network strain and promote fair usage.
Accelerated Smart Meter Rollout
The nationwide push for smart meters is central, with plans to install 6.2 million new units by March 2029, starting with 577,000 by end-March 2026 in priority zones. Over 800,000 are already fitted, enabling real-time monitoring to identify unpaid usage and tampering. Mlambo explained: “With the smart meters and the consumption of those customers that are legally connected, we will be able to identify the load that is consumed by our customers because we will have that information at customer level, and we will also be able to tell at which transformer do we have these illegal connections. It will help us to identify those areas and be able to deal with them almost immediately.”
Smart meters will send alarms for bypass attempts, allowing quick response. All procured meters meet 50% local content rules, sourced through open tenders to support jobs. By mid-2026, lower-impact provinces like the Northern and Western Cape should be load reduction-free, with full elimination by 2027.
Deployment of Distributed Energy Resources
Over five years, Eskom will install 250 Distributed Energy Resources (DERs) in remote or high-demand spots. These small-scale power sources will back up supply, creating a sustainable local energy setup and reducing reliance on strained grids.
Timelines and Provincial Focus
The strategy prioritises Gauteng, Limpopo, Mpumalanga, and KwaZulu-Natal, where overloads are worst. Monthly targets include 100,000 installations soon, dropping to 45,000 in December for planning. By 2027, all 7.2 million customers should have smart meters, ending load reduction nationwide. Mlambo stressed customer education and cooperation as vital: “Of course, for the customers that are illegal and that would have fiddled with our equipment by bypassing – the smart meter would give us an alarm and we will be able to respond and attend to the customer that is attempting to bypass the meter.”
Provinces with milder issues, like the Northern and Western Cape, are on track for freedom from the practice by mid-2026.
Challenges: Budget Gaps, Theft, and Procurement Hurdles
Despite optimism, hurdles remain. Eskom faces scrutiny over the rollout’s cost – undisclosed due to tender rules – and lack of a finalised budget. It relies on its balance sheet under the Public Finance Management Act, but MPs question feasibility without set funds. National Treasury’s target is just 250,000 meters by end-2027 financial year, far below Eskom’s 6.2 million ambition.
Theft and vandalism pose ongoing risks, causing R30 billion yearly losses and safety hazards. Mlambo noted: “Eskom is fully prepared to implement the programme, and smart meters are being procured and delivered in tranches to manage operational risks such as storage, theft, damage, and inefficiencies.”
Procurement delays could slow progress, with Eskom seeking more suppliers via expressions of interest. Over five years, R320 billion will be invested in infrastructure, with 14% for Distribution, but economic damage from theft demands urgent community action.
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