Response from Eskom:

Eskom says all their tariffs are regulated by the National Energy Regulator of SA and the power utility abides by those tariffs for each category of customers. Customers will, therefore, pay the tariffs applicable to their category.

Eskom cannot negotiate separate tariffs or have preferential arrangements outside of what is regulated. A fixed charge per household will result in customers paying a fixed amount irrespective of the amount of electricity used. This could lead to wasteful usage of electricity.

Above all, this will cause network overloading and hindrance in providing good service to customers. Eskom’s lifeline tariffs are Homelight 20 A and Homelight 60 A.

The lifeline tariffs are meant to provide a basic electricity service at a subsidised rate to those who cannot afford to pay the full tariff.

The utility is not in a position to provide services in areas where the residents are not paying for their electricity. Nonpayment of electricity does not only affect the security of supply for paying customers, but it also contributes to energy and revenue losses, coupled with increased operational costs.

Eskom maintains and replaces failed infrastructure on a regular basis due to overloading caused by illegal connections. This is not sustainable and a Public Finance Management Act issue, while not in line with Eskom’s revenue management practice and efforts to improve on its financial and operational objectives. – Moneyweb