Free Basic Electricity Compiled by: M Tshabalala

Table of Contents  What is Free Basic Electricity Programme  Stakeholder and obligations  Funding framework  Registration and access to Free Basic Electricity  Hints and Tips  Communication strategy  Highlights & lowlights  Challenges  Way forward  Conclusion

What is Free Basic Electricity (FBE)  lt is a limited amount of FBE deemed necessary to provide basic services as determined and funded by the National Government  The Free Basic Electricity programme aims;  to contribute towards raising the standards of living  to help poor households to have access to basic electricity  Through this programme, government provides funding for 50kWh of electricity to poor households per month

Stakeholders and their obligations n National Government provides direction and funding. n Municipalities are accountable for the provision of free basic electricity and sets selection criteria within the parameters of the national FBE guideline & within their boundaries. n Eskom is a Service Provider for FBE in Eskom areas of supply.

Funding framework n The cost of the free allocation (FBE) is funded through the equitable share from National Government n Municipality funding criteria u lndigent policy u Blanket approach n Funding agreement u Service level agreement between the municipality and Eskom as the service provider in Eskom supplied areas n Billing u Monthly bills are submitted to munics u Invoices are expected to be paid within 30 days

Registration and Access to FBE n lndigent register u Council resolution u Policy u Registration n Access u Municipality & Eskom F Through the billing system for conventional customers F Credit tokens from vending points for prepaid customers

Hints and Tips n Token are collected monthly n Units are not tranfer from month to another n Units are collected at local vendor n Always check tariff code and supply group code

Communication Strategy n Municipality u Ward meetings u Community structures n Eskom u Pamplets u Vendor training u Customer forums u Awareness campaign

Highlits and Lowlights n Highlights u Sucessful roll out within the district u Payment level is very good u Good stakeholder relations n Lowlights u No roll out within Lesedi boundries u No indigent register in place u Token collection very low

Challenges n Data u Munic and Eskom system not aligned u Data standard not common n Customers u Relocation u Tampering u Illegal connections n Vending system u Technological challenge u Vending availability and security

Way forwad n Data u Standardise data templates u Municipality to verify illegibility of registered customers u Reduce tempering u Minimise illegal connections u Enforce By-Laws n Vending system u Vendor training u Roll out latest vending software u On-line system

I THANK YOU

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