City Power has called on qualifying low-income households to register for free basic electricity (FBE) in an effort to improve compliance and reduce electricity theft. The initiative comes as the utility faces financial difficulties, including a reported negative bank balance of nearly R17 million.
Program Aims to Assist Vulnerable Communities
City Power spokesperson Isaac Mangena explained that the program targets approximately 130,000 households, particularly in informal settlements, where non-payment and illegal connections have contributed to revenue losses.
“We are doing this to ensure no one is left without electricity,” Mangena said. “Many people in these areas cannot afford to pay, so we are installing or repairing meters for free so they can access this service.”
The FBE program is funded by the National Treasury as part of a social support package, meaning the cost does not directly impact City Power’s strained finances.
Financial Challenges and Auditor General’s Findings
When questioned about City Power’s financial struggles, Mangena acknowledged mismanagement issues flagged by the Auditor General but denied allegations of corruption. He attributed part of the deficit to unexpected electricity purchases after load shedding was temporarily suspended, forcing the utility to spend unbudgeted funds.
“The Auditor General’s report highlights structural issues, not theft,” he said. “We are implementing stricter revenue controls to recover outstanding payments.”
Controversy Over Executive Salaries and Consultants
Mangena also responded to a News24 report alleging excessive spending on senior executives and outsourcing. The report claimed some managers earned up to R3 million annually while external consultants were paid for work that should have been handled internally.
Mangena dismissed the allegations, stating that consultants were hired through proper procurement processes to assist with organizational restructuring. “These claims are misleading,” he said. “The consultants support specialized projects as City Power transitions into an energy company, not routine executive functions.”
Broader Issues: Vandalism, Non-Payment, and Illegal Connections
Beyond financial troubles, City Power faces challenges such as infrastructure vandalism, illegal connections, and widespread non-payment. Mangena emphasized that the FBE registration drive is part of a broader strategy to formalize electricity access and improve revenue collection.
“We are addressing multiple issues at once,” he said. “This program helps us identify legitimate users while reducing losses from theft.”
Conclusion
As City Power pushes forward with its FBE initiative, the utility remains under scrutiny for its financial management. While the program aims to assist vulnerable residents, critics argue that systemic reforms are needed to ensure long-term sustainability.
For now, qualifying households are encouraged to register for free basic electricity to avoid disconnections and ensure legal access to power.