The role of smart meters in addressing energy poverty in South Africa

ENERGY poverty in South Africa remains acute. Research from the Public Affairs Research Institute (PARI) shows that more than half of households live below the upper-bound poverty line, with a significant share on the food poverty line. This is the context in which affordability and food-versus-energy choices are made at kitchen tables every day.

- THOMAS GARNER

Free Basic Electricity (FBE) was designed to ease this burden, but delivery is uneven across municipalities and coverage limited. Stats SA’s 2023 General Household Survey found that only about 14% of municipal electricity consumer units received FBE.

This shortfall undermines access to affordable electricity at levels sufficient to drive socioeconomic development and improve food security. Meanwhile, municipal finances are under severe strain, with arrears to Eskom approaching R100 billion.

In response, National Treasury has launched a smart-meter programme to improve billing accuracy and revenue collection.

Under the R2 billion RT29 Transversal Programme, about 67 000 smart meters were installed in 2024/25 at an average cost of R7 463 per unit. The target is 250 000 meters by 2027/28.

Smart meters, however, cannot solve the systemic failures driving municipal revenue losses.

These include the misappropriation of funds to politically connected service providers that fail to deliver, a longstanding culture of nonpayment fostered by weak enforcement, inadequate infrastructure maintenance leading to technical losses, and a lack of forward planning.