FREE BASIC ALTERNATIVE ENERGY FREE BASIC ELECTRICITY Matthews

FREE BASIC ALTERNATIVE ENERGY/ FREE BASIC ELECTRICITY Matthews Bantsijang Director: Electricity Policy 3/12/2021 1

PRESENTATION OUTLINE • Background • Previous challenges to be further discussed • Other challenges • Role of Cogta and National Treasury • Conclusion 3/12/2021 2

ISSUES RAISED ON THE PREVIOUS PRESENTATION Illegal connections vs. FBE Free basic electricity accrues to a designated POP on a monthly basis • Subjected to municipal credit control measures and policies which are subject to council approval and are unknown to the department • To be streamlined at Provincial, District and Municipal Capacity • On going forum on all levels • FBAE should be implemented where there is no FBE roll out due to lack infrastructure by municipalities. 3/12/2021 3

OTHER CHALLENGES Availability of low cost appliances • Limited intervention while participating of different forums with Dti on Standard and cost • Some provision to FBAE appliances, no provision for electricity appliances • Also, these energy carries are unregulated and more expensive compared to grid and non-grid electricity as Paraffin, Coal, Candles, Biofuel, Wood Accessibility of FBAE LPG, wood, paraffin, etc. • Geographic accessibility • Signing of Free Basic Electricity provision contract with Eskom • Delays due to lack indigent registers and municipal decisions Lack of information at Municipal level on roll out of FBAE • On-going Municipal, District Provincial workshops 3/12/2021 4

OTHER CHALLENGES Lack of indigent policies, registration, verification & management of indigents, contravention of policy and token collection • Cogta, Do. E, SALGA, ESKOM and other utilities are assisting Munics assisting • Enhancement and provision of FBS levels of service in Munics to assist beneficiaries on collection and advice on enhancement Lack of human Capacity at Municipality level • Presently there are National initiatives and Provincial to support Municipalities. • Cogta, Do. E, SALGA, ESKOM and other utilities are assisting Municipalities 3/12/2021 5

OTHER CHALLENGES Lack of communication • Ongoing communication (stakeholders). Lack of proper reporting, monitoring & evaluation system and limited coordination • Cogta is now facilitating the coordination Provincial proportional roll out of FBE • On going Provincial energy forums to harmonise policies Cogta and National Treasury as key players in the roll out of FBE/FBAE • Cogta: DORA approach on implementation • NT: Funding challenges 3/12/2021 6

CONCLUSION • Due to a lack of a monitoring mechanism on the ground it is difficult to establish accurate figures. Cogta to further coordinate. • National Treasury to intervene on the lack of implementation due to limited funding. • Poverty alleviation is an important challenge for the country. The links between poverty and energy are clear, and as such the policy on free basic electricity and free basic alternative energy still is an important key to uplifting the poor. 3/12/2021 7