Eskom electricity theft disaster

A compulsory prepaid electricity meter project carried out in 2024 revealed a high prevalence of electricity theft in South Africa. Eskom estimated that 2.1 million prepaid customers had been buying electricity illegally.

The timer built into the Standard Transfer Specification (STS) ran out of time at 20:15 on 24 November 2024, requiring customers with STS-compliant prepaid electricity meters to update them before that deadline.

Most prepaid electricity meters use STS.

By the deadline, roughly 2.1 million prepaid electricity customers had failed to update their meters.

However, many of these customers’ prepaid electricity meters weren’t vending electricity. Eskom gave them a lifeline, allowing “zero buyers” to come forward to receive Key Change Tokens that enabled them to update after the deadline.

Eskom began using the phrase “zero buyers” as a euphemism for electricity thieves — people who consume but do not pay for electricity.

The power utility later revealed that 400,000 “zero buyers” became paying customers through the prepaid meter update project, leaving roughly 1.7 million outstanding.

It said all of its paying customers have been upgraded to KRN 2. It is encouraging the 1.7-million-odd non-paying customers to come forward.

“In the past ten days, we saw zero buyers coming forward in huge numbers wanting to buy electricity and do the right thing,” said Eskom group executive for distribution, Monde Bala.

“We will continue to treat these users with dignity and respect as we resolve these issues for all who did the right thing.”

Before this, the power utility was effectively cracking down on electricity theft in the country. In September 2024, Eskom spokesperson Daphne Mokwena said the utility was disconnecting and fining offending customers and communities.

She added that the fines amounted to around R6,050, and Eskom disconnected the customers until they paid the fee.

“We’ve got customers that we have disconnected because when we audited their meters, we found that customers have done these illicit behaviours,” said Mokwena.

“The process is that we disconnect the customer. We fine the customer depending on what the customer is consuming. If it’s a 60amp or 20amp customer, we fine the customer about R6,050.”

“The customer stays disconnected until they pay that amount,” she added

She said the problem was so extensive in some regions that Eskom disconnected entire communities when it found that more than 90% of prepaid meters in an area weren’t vending electricity.

“We do disconnect these customers until we come to some agreement where they pay their penalties. We then replace the meters that they would have vandalised,” she said.

Eskom takes six years to raid illegal electricity farm

In early December 2024, Eskom announced the arrest of a farmer in Leeupoort, Gauteng, on charges of operating a large-scale illegal electricity operation.

The power utility gained access to the property with the assistance of City Power, the South African Police Service, and its contracted security personnel.

The team raided three houses on the farm and recovered critical infrastructure, including two transformers and 150 meter boxes belonging to Eskom and City Power.

The operation served more than 600 households in the area, and Eskom estimates that its losses in electricity sales due to the illegal operation amount to around R6.6 million.

However, it noted that it had first identified the illegal operation in 2018, and Mokwena later said it took six years to gain access to the property because it was protected by armed guards.

She added that the power utility didn’t want to endanger its technicians.

“We had to send our technical guys to go and read the meter, and we found some heavily armed guards at this customer’s property,” she said.

“So, clearly, we couldn’t just force our way in because we need to make sure that our employees are safe. However, we have been working with the police since 2018, since we found out that we are unable to get into the property.”

“Unfortunately, it took us this long to make a breakthrough. We had to come with about 80 police officers and beef up our security guys as well to assist,” added Mokwena.