Free Basic Electricity South Africa (FBE) could be heading for its most important change in more than two decades. The government is considering increasing the monthly electricity allocation for qualifying low-income households from the national benchmark of 50 kilowatt-hours to between 200 and 300 kWh.
For struggling families, the proposed increase could provide meaningful relief. Electricity prices have risen sharply, while the amount of free electricity offered under the national policy has remained largely unchanged since 2003.
Even households that do not qualify for free electricity are feeling the pressure. I currently pay a hefty price for electricity, and the increases are becoming difficult to ignore. If paying customers can feel this pinch, it is worrying to imagine what poorer households are experiencing.
However, the proposed 200–300 free electricity units have not been approved or guaranteed. With South Africa’s municipal elections approaching on 4 November 2026, citizens are also entitled to question whether this is a serious, funded commitment or simply a promising announcement during election season.
Table of Contents
1. What is Free Basic Electricity?
Free Basic Electricity, commonly called FBE, is a government-supported municipal service intended to give qualifying poor or indigent households access to a limited amount of electricity every month.
It is not a cash grant paid into a bank account. The benefit is supplied as free electricity units or as a credit on a qualifying household’s electricity account.
The general national allocation is currently 50 kWh per household per month, although certain municipalities provide different allocations or additional support from their own budgets.
The programme originates from the National Electricity Basic Services Support Tariff Policy, which took effect in July 2003. At the time, the government considered 50 kWh sufficient for basic lighting, limited television and radio use, ironing and a small amount of cooking or water heating.
Under the current system:
- Prepaid customers generally claim a free token every month.
- Conventionally metered customers should receive a credit on their accounts.
- Households must pay for electricity consumed above the free allocation.
- Free units normally do not accumulate when they are not claimed.
- The allocation cannot be exchanged for cash.
The original Free Basic Electricity policy confirms that the 50 kWh allocation was based on research and household consumption patterns from more than 20 years ago.
2. Why is the government considering an increase?
Electricity and Energy Minister Kgosientsho Ramokgopa says the energy needs of low-income households have changed since the programme was created.
A typical household today may need to power:
- A refrigerator to prevent food from spoiling
- A television or radio for news and information
- Cellphones used for work, banking and communication
- A kettle and limited cooking appliances
- Lights for children studying at night
- An iron and other basic household appliances
These needs were not fully reflected in the original calculation.
The government has also acknowledged the effect of rising electricity prices. According to the Department of Electricity and Energy, tariffs increased by approximately 977% between 2007 and 2026.
Direct Eskom customers faced an average tariff increase of 8.76% from April 2026, while Eskom’s average bulk tariffs to municipalities increased by 9.01% from July 2026. Municipal customers do not necessarily receive exactly the same increase because local electricity tariffs are separately approved and may include municipal charges.
The revised pricing policy is intended to improve transparency, affordability and protection for vulnerable consumers while ensuring that electricity providers can still recover legitimate costs. The Department of Electricity and Energy says the policy must balance affordability with the financial sustainability of the electricity industry.
3. Have 200–300 free units been approved?
No. Qualifying households should not expect to receive 200 or 300 free units yet.
In August 2026, Minister Ramokgopa said the allocation could be increased to between 200 and 300 kWh per month, depending on household income. He also proposed modernising the programme through a central national database.
However, the published Revised Electricity Pricing Policy 2026 does not guarantee an allocation of 200 or 300 kWh.
Instead, the draft says the Department of Electricity and Energy, Cooperative Governance and National Treasury should determine annually how much Free Basic Electricity can be funded through government transfers.
It also proposes:
- Periodic reviews based on changing household needs
- Including the cost in the government’s medium-term budget
- A two-year study of the programme’s effect
- Improved monitoring and accountability
- Better coordination between municipalities and electricity providers
The important distinction is therefore:
The government is considering 200–300 free units, but the current draft policy does not guarantee that amount.
The complete proposals can be found in the official Revised Electricity Pricing Policy.
4. How much difference would 200–300 units make?
Fifty kilowatt-hours is relatively small for a modern household. A refrigerator, kettle, stove, geyser and heater can use the allocation quickly—especially during winter.
Increasing the allowance to 200 or 300 kWh could enable a qualifying household to meet more of its basic monthly needs. Depending on the appliances used and their efficiency, the additional units could support refrigeration, lighting, communication, studying and limited cooking or water heating.
The actual financial saving would vary because electricity prices differ between Eskom and municipal supply areas. Tariffs can also change according to usage blocks, fixed charges and local pricing structures.
The increase would not necessarily cover a household’s entire electricity bill. Families using more than the free allocation would still have to purchase additional units.
Nevertheless, receiving four to six times the current national allocation could offer much more meaningful assistance than 50 kWh.
It could also reduce unsafe coping strategies. Households that cannot afford sufficient electricity may rely on candles, paraffin, fires or unsafe connections. Increasing the allocation will not eliminate these dangers entirely, but reliable access to additional legal electricity could help.
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5. Who qualifies for Free Basic Electricity?
FBE is intended for households classified as poor or indigent. However, there is no single income threshold used by every municipality.
Each municipality adopts its own indigent-support policy. Qualification may consider:
- The combined monthly income of household members
- Whether residents receive social grants
- The value or ownership of the property
- Average electricity consumption
- The capacity of the electricity connection
- Whether the applicant permanently lives at the address
- Whether the property has a legal connection
- Whether the household already receives free electricity elsewhere
According to Eskom’s Free Basic Electricity guidance, municipalities decide which households qualify and include them on their indigent registers.
Municipalities also submit approved information to Eskom when Eskom supplies the property directly. Eskom does not independently determine or own municipal indigent lists.
Receiving a Sassa grant may help demonstrate financial need, but it does not currently guarantee automatic approval for free electricity.
The government’s proposed national database may eventually connect information from Home Affairs, social-grant records and electricity providers. The intention is to improve identification of qualifying households and reduce the number of eligible families who are excluded.
6. How can households apply?
Applications generally begin at the local municipality—even where Eskom supplies electricity directly to the home.
Contact your municipality.
Visit or contact your municipality’s customer-care centre, Free Basic Services office, indigent-support office or ward office.
Ask for an indigent-register application or Free Basic Services application. Some municipalities provide online forms, but this is not available everywhere.
Confirm the local requirements.
Ask the municipality:
- What is the household-income threshold?
- Which free services are included?
- Which documents must be submitted?
- How long will the application take?
- Must the application be renewed annually?
- How are Eskom-supplied properties processed?
- What can applicants do if they are rejected?
Prepare the required documents.
The exact requirements differ, but applicants may be asked to provide:
- Identity documents for adult household members
- Proof of income or unemployment
- Recent bank statements
- Sassa grant confirmation
- Proof of residence
- Municipal account or prepaid meter number
- An affidavit explaining the household’s financial position
- Proof of property ownership or lawful occupation
Applicants should obtain an official document list from their municipality rather than relying entirely on general online advice.
Complete the verification process.
The municipality may verify income, examine databases or conduct a household visit. Applicants should provide truthful and complete information.
Incorrect information can delay an application or lead to removal from the indigent register.
Keep proof of the application.
Request a reference number and retain copies of submitted forms and documents. Ask when a decision can be expected and how the municipality will communicate the outcome.
If the application is rejected, request written reasons and ask about the municipality’s appeal or objection procedure.
7. How do approved households receive their free units?
Prepaid customers generally need to claim their allocation every month.
Eskom says qualifying customers may be able to claim a free token through participating electricity vendors or by dialling:
- *130*869#
- *130*269#
Households should confirm the correct method with their municipality because local systems may differ.
Approved prepaid customers should remember:
- You do not have to buy electricity to claim an FBE token.
- Only one allocation is available per household each month.
- Unclaimed units do not normally roll over.
- Tokens should be entered within the relevant calendar month.
- The benefit cannot be exchanged for cash.
- Keep the token or receipt in case the units do not load.
Conventionally metered households should receive the allocation as a credit. Their bill should reflect the electricity consumed minus the approved free amount.
If a registered household suddenly stops receiving its benefit, it should contact both the municipality and electricity supplier. Indigent registrations may also require regular renewal.
8. Why do qualifying households still miss out?
The draft Electricity Pricing Policy acknowledges serious problems with the implementation of Free Basic Electricity.
These include:
- Incomplete or outdated municipal indigent registers
- Poor communication with residents
- Complicated application and claiming processes
- Inconsistent qualification rules
- Weak monitoring
- Insufficient coordination between municipalities and Eskom
- Uncertain or inadequate funding
- Households not knowing that they must apply
The draft warns that intended beneficiaries do not always receive the support, while inconsistent municipal systems can result in unequal access.
The proposed national database could help identify households more accurately. The government says the system could be integrated with Home Affairs and social-grant information.
However, a database alone will not repair poor administration. Municipalities still need qualified staff, reliable systems and updated information. Residents must also be given a way to challenge incorrect records.
The government will need to explain how personal information will be protected, who may access the database and how errors will be corrected.
9. Could other electricity customers pay more?
Increasing Free Basic Electricity will require funding. That money could come from national transfers, municipal budgets, authorised cross-subsidies or a combination of these sources.
The draft policy says the Department of Electricity and Energy, Cooperative Governance and National Treasury must determine what the government can fund annually. It also says FBE costs should be included in the medium-term budget.
This raises an important question: will the government fund the increased allocation directly, or will some of the cost eventually be passed to paying customers?
The answer is not yet clear.
The new pricing policy supports transparent subsidies, meaning consumers should be able to see how electricity costs are calculated instead of hidden expenses simply being built into tariffs.
The government should disclose:
- The expected annual cost of the increase
- The number of qualifying households
- How much national government will contribute
- Whether municipalities must contribute
- Whether paying customers will cross-subsidise the programme
- How FBE money will be protected from misuse
Poor households need meaningful relief, but diligent paying customers should not be surprised by hidden charges. A sustainable programme requires honest information about who receives the benefit and who pays for it.
10. Is this genuine relief or an election promise?
South Africa’s municipal elections are scheduled for 4 November 2026, while the new Free Basic Electricity discussion emerged only a few months before voting.
It is therefore reasonable for citizens to question the timing. Electricity is one of the country’s most emotionally and financially sensitive issues, and an offer of more free units is likely to attract attention.
From my perspective, South Africans have heard many positive government announcements that later became trapped between departments, budgets and municipal failures. That history makes scepticism understandable.
However, timing alone does not prove that the proposal is a political trick. The existing Electricity Pricing Policy dates from 2008, and the separate Free Basic Electricity policy dates from 2003. Both genuinely need modernisation.
The best way to judge a government’s intentions is through measurable action:
- Is a specific minimum allocation included in the final policy?
- Is sufficient funding approved?
- Is the 2003 FBE policy formally updated?
- Is the national database completed?
- Are municipal indigent registers corrected?
- Are application processes simplified?
- Do qualifying households actually receive additional units?
- Are implementation figures published after the election?
If these actions follow, the proposal could represent genuine social relief. If the announcement fades after election day, public criticism will be justified.
11. What happens next?
The Revised Electricity Pricing Policy was published in the Government Gazette on 28 August 2026 for public comment.
The Gazette invites comments within 30 days of publication. However, an earlier departmental media statement listed 20 September 2026, apparently because the document was originally expected to be published sooner.
Because of this inconsistency, interested citizens and organisations should submit comments by 20 September to avoid missing the consultation.
Written submissions can be emailed to:
Comments should be addressed to the Director-General of the Department of Electricity and Energy and marked for the attention of Mr Joseph Maraba.
Members of the public could ask the government to:
- Guarantee a meaningful national minimum allocation
- Explain exactly how the increase will be funded
- Establish fair and consistent qualification principles
- Simplify indigent-registration applications
- Protect applicants’ personal information
- Create an accessible appeals process
- Publish the number of households receiving FBE
- Prevent funding from being diverted to unrelated expenses
12. Final thoughts
Increasing Free Basic Electricity could provide real relief, but households cannot cook with a press statement or load a political promise into a prepaid meter.
The possible increase to 200–300 kWh recognises an important reality: 50 units were calculated for a different time. Electricity has become far more expensive, and modern households depend on it for food safety, communication, education and basic dignity.
The government now has an opportunity to put vulnerable households first. To prove that this is more than an election-season announcement, it must finalise a clear policy, provide sufficient funding and ensure that qualifying people continue receiving the benefit after the campaign posters have come down.
13. Frequently asked questions
1. How much Free Basic Electricity do qualifying households currently receive?
The national benchmark is currently 50 kWh per household each month. Some municipalities provide different amounts or additional support through their own policies.
2. Has Free Basic Electricity increased to 200–300 units?
No. The government is considering an increase to between 200 and 300 kWh, but it has not yet been approved or guaranteed. Qualifying households should continue claiming their existing allocation.
3. Who qualifies for Free Basic Electricity in South Africa?
The benefit is intended for poor or indigent households. Each municipality sets its own requirements, which may consider total household income, social-grant status, electricity consumption and whether the property has a legal connection
4. How do I apply for Free Basic Electricity?
Contact your municipality’s indigent support, Free Basic Services or customer care office. Ask for an indigent-register application and confirm which identity, income, residence and electricity-account documents are required.
5. How do I claim my free electricity units?
Approved prepaid customers can usually claim a monthly token through participating vendors or designated USSD services. Conventionally metered customers should receive an account credit. Confirm the correct process with your municipality because claiming methods differ between areas.
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