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Electricity

'Promise of free electricity backfires as costs spiral'

January 19, 2005

Business Day

ONE of government's flagship poverty-relief measures is in crisis, sounding warning bells ahead of local government elections later this year, according to Business Day.

Government's policy of providing free basic electricity for the poor has been lauded as one of the successes of the fight against poverty, but it has now been shown to be poorly run and failing dismally to reach those it is intended for, the newspaper reported.

It said that the delivery failure will be one of the issues discussed by the cabinet lekgotla, which meets in Gauteng for three days from today to discuss government's progress in implementing its mandate and programme of action for the coming year. President Thabo Mbeki, Deputy President Jacob Zuma, ministers, deputy ministers, directorsgeneral and other officials will attend the brainstorming event.

Ompi Aphane, chief director in the minerals and energy department, said yesterday that only 12% of the poor had received the freeelectricity benefit in the 18 months since its launch, while expenditure on the initiative had ballooned to about R750m 2,4 times more than budgeted.

"The issue (of nondelivery of free basic electricity) will explode very soon as we go into the (local government) elections", Business Day reported that Aphane warned in a briefing to Parliament's minerals and energy committee.

For more information see:
Business Day



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