The effects of electricity theft on Eskom distribution in KwaZulu-Natal operating unit.

Abstract

Electricity theft is becoming an increasing problem with a significant impact on the overall economy. Power utilities around the world are losing billions annually; this translates to reduced sales, resulting in revenue loss that could be invested in other critical developmental projects. In developing countries, electricity theft poses a serious threat to the sustainability of power utilities, economic growth, security and quality of supply, as well as the delivery of “electricity for all” universal access programme. To address this challenge, power utilities tend to focus on technical techniques, neglecting the socio economic challenges which are motivating factors behind the theft of electricity. This study has been undertaken to investigate and assess the effects of electricity theft on the operations of Eskom Distribution business in KwaZulu-Natal. The study aims to identify the factors contributing to electricity theft and the effects thereof, that will assist in the creation of an effective sustainable solution. A combination of qualitative and quantitative reseach design methodology was employed to establish the factors and effects of electricty theft on the operations of Eskom Distribution business. The research is of a mixed method, entailing a research methodology based on semi structured interviews and close-ended survey questionnaires.The target population of this research was Eskom employees selected from Eskom Distribution, KwaZulu Natal Operating Unit and households (Eskom customers), selected from Edendale area, Pietretmaritzburg. The major findings of the study identified socio economic factors, affordability, lawlessness, culture of entitlement and slow delivery of electricity access, as the main contributors to theft. The effects of theft leads to revenue loss, increased operational cost, power outages, increased electricity tarrifs, loss of life and electrocution injuries. The study found that electricity theft is a multifaceted socio economic problem which requires a multi-pronged approach. The issue of electricity theft cannot be addressed by looking at technical solutions only, it requires a multi pronged strategy consisting of political, social, economic and technical solution. Based on these findings, the study recommends that Eskom formulates holistic strategies that includes communities, government and private sector considering the factors contributing to electricity theft.