(2001) South Africa

  • Indicator 3: Households with Access to Electricity
    • Figure 4. Annual electricity connections by Eskom and Local authorities, 1991-1999
    • Vector Value calculations and values
    • Discussion and notes to SEW or next year's Observer-Reporter

The South African mass electrification programme has been one of the most successful elements of the South African Reconstruction and Development Programme. Initiated by Eskom in 1991, and included as a key government programme after the 1994 elections, the programme has brought electricity to more than 3.3 million homes (NER 1999). The annual connections made by Eskom and the local authorities in charge of distribution for most municipalities are shown in Figure 4.
Figure 4. Annual electricity connections by Eskom and Local authorities, 1991-1999
Vector Value calculations and values
In most Southern African countries less than 15% of the population have access to electricity (Ruffini 2000), but in South Africa that share stood at 66% at the end of 1999, with 80% and 46% of urban and rural households having access, respectively (NER 1999). This is up from less than 35% access in 1990 (Eberhard & Van Horen 1995).
For this indicator, the value for 1 on the vector is 0% access, while the value for 0 is 100% access. For vector value for South Africa in 1999 is therefore 0.34, and 0.65 for 1990 (ie one minus the share with access).
Metric (actual data) for 1990: 35% and 1999 66%
Vector values for 1990: 0.65 and 1999 0.34
Discussion

The electrification programme is likely to slow down, as costs per connection have started to rise and as the target-driven approach is being replaced with a 'market-related' one. Most of the connections in the 1990s were in urban areas and rural areas that were relatively cost effective to electrify. The challenge facing government is how to further extend access in the face of rising costs and declining average consumption. While Eskom originally estimated the customers would need to use 300 kWh per month for the electrification investment to break even, average use among these customers five years after electrification is less than 140 kWh (NER 1996).

Two important shifts in this programme are the new government commitment to off-grid electrification in rural areas, and the change in electrification financing. The DME has launched a programme under which seven concessionaires will be in charge of providing off-grid electrification to a total of 350 000 homes (NER 2001b). This market is discussed in more detail with Indicator 4. On the second point, in the past Eskom financed their electrification connections internally, essentially subsidising electrification for the poor from revenues from other customers. Government has proposed shifting this funding into an institution such as the National Electricity Regulator or even the Development Bank of Southern Africa. Eskom would pay tax and dividends to government, which they have not in the past, and part of this funding would go into the National Electrification Fund, which would fund both Eskom and local authority connections.

Notes to SEW or next year's Observer-Reporter:

The National Electricity Regulator regularly publishes electrification statistics, which are updated annually. The annual trend for this indicator should be reported for all years from 1990 to the present.

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