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Free basic electricity for the poor: Billions in fundin

Chris Yelland is managing director of EE Business Intelligence. A new research report published by the Public Affairs Research Institute reveals that in the 2019/20 financial year alone, about R9-billion budgeted and disbursed by National Treasury to local government for the provision of free basic electricity (FBE) to the poorest of the poor has been misappropriated by municipalities.   The report, Broken Promises: Electricity access for low-income households – good policy intentions, bad trade-offs and unintended consequences, by Dr Tracy Ledger, further shows that in the six financial years from 2014/15 to 2019/20, about R38.3-billion disbursed by National Treasury for FBE to indigent households failed to reach the intended recipients, and was instead used by municipalities for other unauthorised purposes. 

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