Smart meters, microgrids: Ramokgopa unveils plan to end load reduction within 18 months

Electricity and Energy Minister Dr Kgosientsho Ramokgopa says power cuts linked to load reduction will soon be a thing of the past, as government ramps up efforts to eliminate the practice across the country.

Speaking at a media briefing on Thursday, Ramokgopa unveiled a detailed plan aimed at eradicating load reduction - a form of electricity curtailment distinct from load shedding - which disproportionately affects low-income communities and informal settlements.

“If communities cooperate, the plan could be completed far earlier than anticipated,” he said. “Today, we are ending load reduction. We have set a timeframe of 12 to 18 months, but it could be significantly shorter.”

Unlike load shedding, which is implemented nationally due to power generation shortfalls, load reduction is applied locally - typically in areas where illegal connections, vandalised infrastructure, and overloaded transformers pose safety risks.

Ramokgopa said more than 1.69 million Eskom customers, representing over 8.5 million people, are affected daily.

“To the people experiencing it, it doesn’t matter whether you call it load shedding or load reduction - the impact is the same: hours without electricity,” he said.

According to the minister, Gauteng, Limpopo, Mpumalanga and KwaZulu-Natal account for nearly 80% of national load reduction.

In Gauteng alone, 632,158 customers are affected, supported by 604 overloaded feeders. The department aims to resolve 145 of those feeders by March 2026,  potentially more, depending on local support, he said. 

Ramokgopa said the strategy to end load reduction includes three key interventions: a national rollout of smart meters, refurbishment and upgrade of local infrastructure, and the deployment of decentralised electricity generation through solar-powered microgrids.

Ramokgopa emphasised that smart meters are crucial for isolating delinquent customers without punishing entire communities. 

“One of the biggest criticisms I get is from people who say, ‘Minister, I pay for my electricity, I am not illegally connected, and yet I am punished the same as everyone else.’ With smart meters, we can isolate those who choose not to pay, and not make others collateral damage,” he said.

The meters will also assist in improving access to free basic electricity (FBE). Currently, only 485,000 out of 2.1 million eligible Eskom customers are receiving FBE. With smart meters,

Ramokgopa said the government would be able to “front-load” the 50 kWh monthly allocation to qualifying households.

“We’re taking the money to where it belongs, directly to the people,” he said, adding that municipalities would need to maintain accurate indigent registers for the initiative to succeed.

Ramokgopa acknowledged the challenge of illegal connections and the individuals who profit from them, including some within Eskom and municipalities. He warned that these vested interests may stir resistance in some communities.

“We know there are those who are profiting from this. We are taking away illegally-earned income, and they will resist,” he said.

He noted that resistance is most likely in densely populated urban areas with informal settlements, where criminal elements sometimes obstruct access. By contrast, rural areas, often accessed through traditional leadership, were expected to be more receptive, he said. 

“If there is resistance, after multiple engagements, we will retreat from that area and move to the next. You’ll rejoin the queue from the back,” Ramokgopa said.

Beyond ending load reduction, Ramokgopa took the opportunity to highlight progress in stabilising South Africa’s national electricity supply. He said the country had definitively “turned the corner” on load shedding, with the energy availability factor climbing from 48% at the peak of the crisis in early 2023 to over 70% today.

“We are not about to turn the corner. We have turned the corner,” he said.

However, affordability remains a serious issue, he said. Ramokgopa noted that between 2007 and 2024, electricity tariffs increased by 937%, while inflation only rose by 155% in the same period.

“It’s eroding the disposable income of many households, even high-income ones are struggling to pay,” he said.

In response, the department is reviewing the FBE policy, with plans to increase the allocation from 50 kWh to 200 kWh per household per month.

Ramokgopa said this could be achieved without additional funding from Treasury by using low-cost technologies such as solar-powered microgrids.

He pointed to a successful pilot project in the Musina area of Limpopo, where previously unconnected villages now have uninterrupted electricity and public access to free Wi-Fi.

“We believe we can provide electricity far cheaper than is currently the case,” Ramokgopa said. “This is not theoretical. We have done it. You will see it when you visit.”

He added that the cost of inaction, particularly in terms of growing municipal and household debt, was far higher. Eskom is currently owed over R100 billion, with the figure rising by R2 billion each month.

According to Ramokgopa, the national plan to end load reduction will be rolled out in three phases. The first phase runs until March 2026 and focuses on provinces less affected by load reduction. The second phase spans from March 2026 to September 2026, while the third phase covers September 2026 to March 2027.

“Thirty-eight percent of the country’s total load reduction is in Gauteng, particularly in informal settlements,” Ramokgopa said.

“This is largely due to rapid population growth, the proliferation of informal housing, and municipalities’ inability to keep up with the demand for electricity infrastructure. As a result, illegal connections have increased significantly.” 

These latter phases will target hotspots in Gauteng, Limpopo, Mpumalanga, and KwaZulu-Natal, unless progress is accelerated by high levels of local cooperation..

The department has already identified specific towns and wards for intervention, said Ramakgopa. In KwaZulu-Natal, Wards 7 and 8 in the Nongoma Municipality have been prioritised, where 1,293 prepaid customers are currently subjected to daily outages, he said. 

The intervention there is scheduled to start in October 2025, with completion by March 2026, said Ramokgopa. 

“We are confident that we will eliminate load reduction much earlier than 2027,” said Ramokgopa.

“We are going to restore dignity to our people, whether they live in informal settlements, far-flung villages, or townships. Everyone deserves access to reliable electricity, 24 hours a day, 7 days a week, 365 days a year.”

hope.ntanzi@iol.co.za

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