Parliament warns of revenue loss and security risks as meter update deadline looms

Eskom warns prepaid customers to update meters urgently, with Parliament stressing nationwide compliance for uninterrupted electricity access. File Picture

Eskom warns prepaid customers to update meters urgently, with Parliament stressing nationwide compliance for uninterrupted electricity access. File Picture

Published 12h ago

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The Portfolio Committee on Cooperative Governance and Traditional Affairs has expressed concern about the looming deadline for recoding prepaid electricity meters, emphasising that full compliance is essential.

With the November 24 deadline fast approaching, committee members have urged the Department of Cooperative Governance and Eskom to ensure that all municipalities and customers meet this requirement.

Committee Chairperson Dr Zweli Mkhize stated, “Our concern is how all this could affect communities if it were not properly executed.”

IOL previously reported that Eskom said that prepaid electricity meters must be recoded to Key Revision Number (KRN) 2 to remain functional, in line with requirements from the Standard Transfer Specification Association (STSA).

If meters are not updated, they will no longer accept electricity tokens, rendering them inoperable.

Eskom has facilitated a Do-It-Yourself (DIY) recoding process for customers. Once prepaid customers buy credit tokens from authorised vendors, they receive two sets of 20-digit codes to enter into their meters.

“Eskom has already prepared 97% of the meters by pre-coding them, making it simple for customers to complete the process themselves,” said an Eskom spokesperson.

Despite the progress made, around 300,000 meters remain to be recoded, which includes potentially tampered or illegal meters.

Dr Kevin Naidoo, the department’s Deputy Director-General for Policy, Governance, and Administration, updated the committee on the department’s progress and highlighted the financial risks posed by non-vending meters, including an estimated R8 billion revenue loss due to illegal and tampered boxes.

“That’s a huge amount, and we hope that something is going to be done to deal with that,” said Mkhize.

The committee also raised concerns about the physical safety of technicians in certain "no-go" areas, where municipalities face challenges in upgrading meters due to security concerns.

Mkhize recommended that municipalities collaborate with law enforcement to address these areas.

Moreover, committee members sought assurances that the recoding process would not disadvantage any community members and requested a follow-up report from the department as the deadline approaches.

“We note the progress that has been made, but we remain concerned about the deadline that is approaching, and we want the department to come back around the deadline with an update report that tells us where things are so that we can be sure no one is left behind,” said Mkhize.

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