South Africa allocates billions of rand each year to help poor households pay for electricity, but most households the programme is designed to support do not receive it, according to research by the Public Affairs Research Institute and civil-society estimates.
The Free Basic Electricity programme provides eligible low-income households with 50 kilowatt-hours of free power a month. The allocation has not changed since 2006, even as electricity prices rose 450% between 2007 and 2022, compared with 129% inflation, according to the OECD.
The Electricity for All Campaign estimates municipalities redirected about R14.6 billion ($790 million) in 2025 from funding intended for indigent households’ energy needs to other operating expenses. The figure is an estimate rather than an audited Treasury line item, because Free Basic Electricity is funded through general municipal transfers rather than a ring-fenced grant.
PARI estimates the national budget funds free basic services for about 11.2 million households, while fewer than 3 million receive the full package. The campaign estimates that of roughly 10 million households qualifying for Free Basic Electricity, about 8 million are missing out.
“If we can get at least 350 kWh as subsidy grant for electricity, that will make a real difference,” said Aaron Mahlangu, a Labour Party ward candidate in Steve Tshwete Local Municipality. “But the big question is: how are NERSA, Eskom and municipalities going to work together to make this happen?”
Access depends on municipal indigent registers, which often require proof of residence and income details. Those requirements can exclude households in informal settlements, backyard dwellings and rental accommodation.
PARI has proposed a national grant, potentially administered through the South African Social Security Agency, with municipalities or Eskom paid only after delivery is verified.
“Energy poverty is now a shared national crisis,” said Ferron Pedro, senior campaigner at 350.org South Africa. “People are not struggling because they waste energy; they are struggling because our energy system is designed around corporate profit instead of human dignity.”
Municipal financial distress compounds the problem. Eskom told Parliament that municipal arrears rose from R74 billion ($4 billion) in March 2024 to R98.5 billion ($5.3 billion) by February 2025, while municipalities carried about R94.1 billion ($5.1 billion) in overdue debt in January 2025.
Municipalities distribute roughly 40% of South Africa’s electricity and face persistent maintenance, revenue-collection and debt challenges, according to the OECD.
PARI’s costed alternative would raise the free allocation to 150 kWh a month for about 7.5 million low-income households, at an added cost of R6.5 billion ($350 million) a year across free basic services.
A universal 350 kWh entitlement would cost far more: at PARI’s estimated R805 ($43.50) per household per month, 10 million households would require about R96.6 billion ($5.2 billion) a year for electricity alone.
Campaigners want ward candidates to commit to expanding the benefit and improving access. “Our votes must translate into accountability, not empty promises,” said Thandiwe Tess Tshaka of the Botshabelo Unemployed Movement. “Communities deserve leaders who serve the people, not themselves.”
The central constraint is not the absence of a free-electricity policy, but whether money allocated for poor households reaches verified electricity deliveries.