Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Newspaper group Caxton deploys AI editors

      Newspaper group Caxton deploys AI copy editors

      11 September 2026
      So, who exactly will buy Apple's R50 000 iPhone Duo

      Why Apple can’t tell you who its R50 000 iPhone is for

      11 September 2026
      'There are no adults in the room': the AI safety exodus

      ‘There are no adults in the room’: the AI safety exodus

      11 September 2026
      US in move to counter Huawei in Africa

      US in move to counter Huawei in Africa

      11 September 2026
      SAPS wants to deploy AI bodycams with facial recognition

      SAPS wants to deploy AI bodycams with facial recognition

      10 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » To prepay or not to prepay Eskom

    To prepay or not to prepay Eskom

    By Chris Yelland7 May 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Brian Molefe
    Brian Molefe

    In the first two weeks of his appointment, some questionable public statements made by Eskom’s new acting CEO Brian Molefe makes one wonder whether he is receiving sound information from his executive team. Public enterprises Lynne Brown seems to have had similar problems.

    After a presentation to the public enterprises parliamentary portfolio committee, and a media briefing thereafter that reeked of unfounded confidence and hubris, Molefe suggested that the solution to Eskom’s financial woes would be to bypass municipal electricity distributors and supply all customers with electricity in South Africa — domestic, commercial, agricultural and industrial — directly, thus extending its monopoly.

    Local government, in the form of municipalities, have the constitutional right to distribute electricity. Like Eskom distribution, they purchase electricity in bulk from Eskom, operate a distribution network, and deliver electricity to residents and businesses embedded in their geographic service areas. Municipalities use surpluses from this activity to cross-subsidise and fund their other municipal service delivery obligations.

    While the problems of some 20 defaulting municipalities out of a total of some 180 has been well publicised, it must certainly be galling to the significant majority of municipal electricity distributors to hear that the failing Eskom wants to bypass them all in order to use their surpluses to sort out its own financial problems.

    This especially as Eskom’s own performance in distributing electricity direct to domestic and commercial businesses in areas such as Soweto is among the very worst of them all, with theft and non-payment amounting to some 83% of electricity supplied direct to the residents and commercial businesses in Soweto by Eskom. Indeed, with no end in sight, Eskom’s own theft and non-payment financial problem in Soweto alone is bigger than its non-payment problem with all 20 defaulting municipalities combined.

    Molefe went on further to suggest that all Eskom customers, large and small, that currently have credit meters, and pay for electricity monthly on a 30-day credit account, should be required to change to prepayment meters. His rationale was that this would quickly resolve Eskom’s cash-flow crisis by bringing forward some two months’ revenue, amounting to about R20bn, into Eskom’s depleted coffers.

    Is it conceivable that Molefe and his executives are unaware that Eskom’s existing domestic, commercial, agricultural and industrial customers have to make a prepaid deposit amounting to three months’ electricity usage before opening a 30-day credit account? As such, electricity customers on credit meters effectively prepay even more than customers on prepayment meters, who do not pay this three-month deposit.

    This means that if all credit customers were to change to prepayment meters as suggested by Molefe, the three-month prepaid deposits for credit customers would presumably have to be refunded, which would mean that Eskom’s cash flow crisis may in fact worsen rather than improve.

    eskom-640

    Finally, Molefe appears to have been led to believe that prepayment meters are somehow a panacea for all the revenue protection and collection problems experienced by Eskom Distribution and municipal electricity distributors.

    This is strange, because prepayment meters were pioneered by Eskom itself in the early 1990s, and have been around for decades, alongside credit meters. Strange, too, because Eskom’s long experience with both prepayment and credit meters shows that there are areas with prepayment meters having good levels of non-technical losses, and other with poor levels. The same applies to areas with credit meters.

    Thus it is clear that successful revenue protection and collection are not simply a choice of meter technology, but a holistic approach where both prepayment and credit meters, and a whole range of good management, performance monitoring, credit control and enforcement practices form part of the solution.

    A number of regulated tariff options, including those involving both prepayment and credit meters, are currently available and approved by energy regulator Nersa, and it would certainly not be left to Eskom’s whim or discretion to force a credit customer onto a prepayment tariff without good reason, simply to suit Eskom’s financial needs.

    After neglecting the theft and non-payment of electricity in Soweto and other problematic areas for decades, there is simply no quick fix as Molefe seems to believe. The solutions will require a long haul, with commitment and support from national and local government politicians, the cabinet, relevant government departments, Nersa, Eskom, municipalities, the police, courts and correctional services.

    • Chris Yelland is the investigative editor of EE Publishers
    • This piece was first published on Moneyweb and is republished here with permission
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Brian Molefe Chris Yelland Eskom Lynne Brown
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSA science making its mark, bit by bit
    Next Article Microsoft Surface 3 review: laptop killer?

    Related Posts

    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    R1.5-billion to switch off the sun

    R1.5-billion to switch off the sun

    7 September 2026
    The grid unbundling finally has a deadline

    The grid unbundling finally has a deadline

    7 September 2026
    Company News
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Newspaper group Caxton deploys AI editors

    Newspaper group Caxton deploys AI copy editors

    11 September 2026
    Why businesses are moving n8n onto their own servers - Domains.co.za

    Why businesses are moving n8n onto their own servers

    11 September 2026
    So, who exactly will buy Apple's R50 000 iPhone Duo

    Why Apple can’t tell you who its R50 000 iPhone is for

    11 September 2026
    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    Nitda, NDPC and Galaxy Backbone back CyFrica 2026

    11 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}