MyBroadband reported that a South African municipality has introduced smart electricity meters that are allegedly burning through prepaid electricity tokens at an accelerated rate. The city has not disclosed which municipality is involved, nor have officials provided detailed data on the scale of the problem.
Smart meters are digital devices that replace traditional analogue meters and can communicate usage data in real time. In many South African towns and cities, households pay for electricity using prepaid tokens, a code entered into the meter that deducts a set amount of kilowatt-hours from the balance.
If a meter consumes tokens faster than the actual electricity drawn, customers may find themselves without power despite having paid for it. For low-income households that rely on prepaid electricity, unexpected token depletion can translate into higher costs or forced load-shedding.
What the issue could mean for consumers
Consumers facing unexplained token loss may need to contact the municipal electricity department for refunds or adjustments. However, without clear guidance from the city, many may be left to navigate the problem on their own.
The regulator responsible for overseeing electricity pricing and metering standards, Nersa, typically steps in when systematic faults affect large numbers of customers. At this stage, it is unclear whether Nersa has been notified or is investigating the matter.
For businesses that operate on prepaid electricity, such as small retail outlets or informal traders, unpredictable token consumption can disrupt operations and affect cash flow. Companies may need to factor potential meter-related losses into their budgeting and consider alternative payment arrangements if the issue persists.
While the city’s statement, if any, has not been made public, the allegation itself highlights the importance of robust testing before rolling out new metering technology. Municipalities across the country have been urged to ensure that smart meters are calibrated correctly and that any software updates do not inadvertently increase token usage.
Stakeholders, including consumer advocacy groups, will likely monitor the situation closely. If the problem proves widespread, it could prompt a review of procurement processes for smart meters and lead to stricter compliance checks.
Until more information emerges, affected customers are advised to keep records of token purchases and meter readings, and to report any discrepancies to their local electricity provider.
The complaints match a broader pattern reported by Newsday out of Mbombela, where residents with newly installed smart meters say their electricity units are depleting faster than expected and, in some cases, cannot be reloaded at all. A local Democratic Alliance councillor has called on the mayor to address the issue directly. South Africa’s prepaid meter problems extend well beyond any single city: roughly 40% of prepaid meters controlled by Eskom, the City of Johannesburg and eThekwini have previously been found to be non-vending, unable to properly register purchased credit, a fault linked to an estimated R8.6 billion in lost or foregone municipal revenue nationally. For related coverage, see this site’s Energy and Infrastructure coverage.
Municipalities that roll out smart meters generally do so to cut exactly this kind of revenue leakage, since a networked meter can flag tampering or non-payment in real time in a way an older mechanical meter cannot, which makes complaints about the new technology itself malfunctioning particularly damaging to public trust in the rollout.
Provincial energy regulators have also been drawn into similar disputes elsewhere in the country, since a smart meter rollout is typically procured and installed by the municipality itself while Eskom or the relevant distributor remains the entity billed for bulk electricity, a split in accountability that can leave residents unsure which authority is actually responsible for fixing a faulty unit.
