D-day coming for South Africans stealing electricity

South Africa’s power utility Eskom has issued a stern warning to prepaid electricity users who have bypassed their meters or purchased illegal tokens.

As the country approaches a crucial deadline, the utility is ramping up efforts to address widespread electricity theft that has plagued its system.

Users have until 24 November 2024 to recode their prepaid meters or face potentially severe consequences, including the loss of functionality and costly penalties.

Eskom’s final warning comes as it implements the Key Revision Number (KRN) 2 update, a crucial step in its plan to modernise the prepaid electricity system.

After 24 November 2024, prepaid meters still operating on the outdated KRN1 system will no longer accept electricity tokens.

This means that once a user’s current electricity credit runs out, their meter will become inoperable.

The only solution at that point would be replacing the meter, a process that could cost up to R12,000 and must be covered by the customer.

Eskom has emphasised that many of the meters still on KRN1 belong to customers who have either not purchased electricity legally in over six months or are using illegal tokens obtained from criminal syndicates.

By ensuring that all customers recode their meters, Eskom aims to disrupt the illegal trade of electricity tokens, a practice that has contributed significantly to its financial losses.

After the deadline, unauthorised tokens will no longer work, forcing users to buy legitimate electricity from approved vendors.

Electricity theft remains a significant challenge in South Africa, with illegal connections and tampered meters accounting for billions of rands in lost revenue annually.

According to the South African Local Government Association (Salga), fraudulent or tampered prepaid meters are rampant in metropolitan areas, with up to half of the meters in some cities classified as non-vending.

This refers to meters that have not recorded any electricity purchases, often due to illegal tampering.

For example, eThekwini reports 173,850 non-vending meters compared to 260,000 paying customers, while Johannesburg’s City Power has identified 141,446 non-vending meters out of 154,000 prepaid customers.

Nelson Mandela Bay and other municipalities face similar issues, with non-vending meters making up 40% to 55% of their total prepaid systems.

These figures underscore the widespread nature of the problem and its devastating impact on municipal revenue, with Salga estimating annual losses of R8.6 billion due to electricity theft.

Eskom told MyBroadband that it is actively auditing customers and imposing fines to combat this issue.

In September 2024 alone, the utility audited 133,977 customers, uncovering illegal activity among 108,403 prepaid users.

This effort resulted in R14.24 million in fines for meter tampering and bypassing, alongside R158.08 million billed to postpaid users for unpaid historical consumption.

Eskom has vowed to continue these audits and impose corrective measures on those found guilty of tampering with its infrastructure.

To help customers comply, Eskom has launched a nationwide awareness campaign, urging prepaid users to update their meters before the deadline.

Customers can easily check their meter’s status by entering a specific code into the keypad. If the meter displays the number “1,” it indicates the need for an upgrade to KRN2.

Recoding involves entering two unique key change tokens provided by a legitimate vendor, followed by the electricity voucher for recharging on the updated system.

Eskom has stressed the importance of compliance for all prepaid users, whether they are supplied directly by Eskom or through a municipal provider.

Failure to recode will render the meter non-functional, leaving users without power and potentially facing hefty fines or penalties for tampering.

The utility’s efforts to tackle electricity theft extend beyond the KRN update.

Regular audits and enforcement actions will continue after the deadline, targeting illegal connections and unauthorised token sales.

With the 24 November deadline fast approaching, Eskom’s message is clear: customers must take immediate action to recode their meters and avoid severe disruptions.

Those using illegal means to access electricity are particularly at risk as the utility intensifies its crackdown on fraudulent practices.

This initiative marks a critical step in Eskom’s broader strategy to restore order and financial stability to South Africa’s embattled electricity system.

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