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According to the latest official numbers from Eskom, there are 900,000 South Africans registered to receive free basic electricity from the power company.
In response to questions from MyBroadband regarding the adoption of its Free Basic Electricity (FBE) program, the power company said that out of this number, 700,000 claimed their electric vouchers.
However, he noted that this was based on May 2020 data and did not provide an estimate of the current number of FBE beneficiaries.
The Free Basic Electricity Program is an initiative aimed at poor households who are unable or have difficulties to pay basic electricity costs.
“The Free Basic Electricity Program is a government program, through which it aims to provide some free electricity to indigent households,” Eskom said.
How does it work
Eskom explained that free basic electricity is requested through municipalities, which is then reimbursed by Eskom.
“Through the municipalities, the government pays for its electricity vouchers that can be exchanged monthly for free electricity.”
“Upon presentation of the voucher, which you can obtain by visiting your local municipal office, Eskom will pay the customer the amount decided by the municipality, which ranges between R50 and R150 per month, depending on the municipality.”
This means that in May 2020, Eskom spent between R35 million and R105 million to provide free basic electricity to indigent South Africans.
The municipality pays Eskom directly for any electricity claimed under the program.
Eskom said that to qualify for free basic electricity, households must earn R3,500 per month or less.
Eskom cracks down on non-paying customers
TO recent court victory for Eskom has cemented its right to cut electricity for non-paying customers.
The case was brought against the utility company by Pioneer Foods and sought to overturn a 2018 Eskom decision to cut off electricity to the municipality of Walter Sisulu.
The municipality had not paid for electricity, so Eskom had cut off their access to electricity.
As of December 2019, the municipality had a debt of R222 million with Eskom.
South African municipalities owe Eskom a collective total of R31 billion in late electricity payments, and Eskom claims this case would help it improve its collection efforts.
Now Read: Eskom Turned Homeowners Into Instant Millionaires In Nuclear Land Grabbing
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