National Free Basic Electricity comes online in July 2024

National Free Basic Electricity comes online from Monday 1 July 2024. This follows the National Energy Regulator of South Africa’s (NERSA’s) approval last month. The National Free Basic Electricity rate is the threshold at which local municipalities compensate Eskom for free units to qualifying customers. At the NERSA meeting held on 30 May 2024, a qualifying rate of 194.40 c/kWh was agreed upon.

NATIONAL FREE BASIC ELECTRICITY

A 12.8% electricity tariff increase in 2024 from Eskom has left Mzansi feeling the pinch. Image: File

According to Stats SA, 22 out of every 100 households in South Africa is considered indigent. That means they’re too poor to pay for basic municipal services. This includes water, electricity and refuse removal, and would therefore qualify of indigent benefits. Furthermore, it is the type of home that National Free Basic Electricity is aimed at. So, how does it work?

As The South African has covered previously, you need to contact your local municipality to see if you qualify for indigent benefits. Homes are then identified by local municipalities who, in turn, alerts Eskom through a list of beneficiaries. Moreover, if you’re surviving off a South African Social Security Agency grant, you should consider contacting your local municipality for financial relief.

ELECTRICITY VOUCHERS

If you qualify, you’ll receive a monthly voucher and pay for any electricity over and above that. Image: File

If eligible, you’re loaded onto the National Free Basic Electricity database. This enables you to collect free electricity vouchers on a monthly basis from Eskom. Accordingly, the maximum National Free Basic Electricity amount ranges between 50 and 60 kWh per household per month. However, a customer is charged for anything used above this limit. And only one voucher is accepted per meter per month.

At the announcement last month, NERSA had the following to say. “This amount of energy is sufficient to provide basic lighting, media access and water heating. The use of a kettle, iron, as well as basic lighting,” explained NERSA. The National Treasury provides funding for indigent households through equitable share allocation. Eskom customers who think they qualify for National Free Basic Electricity must contact their local municipal office.

HAVE YOUR SAY

Time to have your say. Image: Duncan P Walker

What do you think of the concept of National Free Basic Electricity for the poor? Is it fair that others must suffer the 12.8% Eskom price increase? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.