Each smart meter installed under the National Treasury programme costs it R7 500. (Photograph by Nicola Mawson)
As National Treasury sets a target of installing 250 000 smart electricity meters by the end of the 2027 financial year, it is facing pushback from communities that have not been adequately educated on the programme’s purpose and process.
The government-funded meters are being installed to make it possible for municipalities to pay debt due to Eskom, which is approaching the R100 billion mark.
So far, under National Treasury’s R2 billion RT29 transversal programme, 67 000 meters have been installed at a total cost of R500 million, which translates into cost to government of R7 462.70 per meter. National Treasury plans to add 100 000 additional metering points each year up to the 2027/28 financial year.
Ogalaletseng Gaarekwe, deputy director-general for inter-governmental relations at National Treasury, says the initiative works on the basis of an indirect grant model. The meters are funded through National Treasury, which pays the service providers directly and not via the municipalities and follows a tender process in 2023.
The need for this intervention is underscored by Eskom’s mounting municipal debt. The utility was owed R98.5 billion as of March this year, up from R74 billion a year ago. Eskom attributes much of this increasing debt to provinces such as the Free State and Mpumalanga.
In the 2024/25 financial year, more than 160 municipalities were classified as financially distressed, with 98 operating on unfunded budgets, according to information from National Parliament. South Africa has 257 metropolitan, district and local municipalities.
Sadesh Ramjathan, director of local government budget analysis at National Treasury, says the smart meter programme is designed to show how these installations can improve municipal revenue collection.
“Very soon we’ll be able to show the impact − the financial impact − of these meters in these municipalities… we’re looking at additional revenue that the smart meters are bringing to the municipality,” he says.
Gaarekwe adds that the Smart Meter Grant Project – a grant provided to municipalities that qualify for Eskom’s debt relief programme – aims to modernise municipal electricity management, address infrastructure challenges, enhance energy efficiency and reduce municipal debt to Eskom.
The rollout began in 2024/25, initially benefiting eight municipalities, and has expanded to 19 municipalities as of this year.
A central platform has also been developed to consolidate real-time electricity consumption data. “This improves billing accuracy, transparency and decision-making for stakeholders,” says Gaarekwe. The project is intended to reduce municipal losses and improve consumer experience through accurate billing.
Despite these benefits, Ramjathan acknowledges the opposition to installation from communities, particularly in rural areas, with National Treasury now set to ensure it actively engages community members about the project.
“We found that some municipalities have been very poor at doing the proper consultation, and then once the installation started, the service providers experienced resistance from the community.”
The department is also advising municipalities to carefully select the areas targeted for meter replacement, says Ramjathan.
“You would not want to go and replace a conventional meter in an affluent area where you’re getting payment regularly and on time from customers. You want to target areas where you have certain challenges,” Ramjathan explains.
This approach aims to focus resources on areas where smart meters can have the most significant financial and operational impact, he notes.
