Evaluating the Electrification Programme for Informal Settlements in South African Municipalities and Its Impact on Municipal Revenue

The South Africa national programme aims to enhance energy in informal settlements by maximising access to energy, alleviating poverty, and promoting urban inclusion. Nevertheless, a high rate of unlawful connections and old distribution systems has been identified in municipalities already experiencing financial poverty. This article assesses the suitability of electrifying informal settlements, mainly by funding capital programmes with grants. These programmes have beneficial effects on municipal revenue, non-technical electricity losses (NTLs), network destruction, and sustainability in the long run. Based on recent studies, city reports, and case studies in large cities, this paper concludes that electrification without commensurate investment in revenue protection systems, reinforced infrastructure, and institutional changes drives losses in revenues and leads to additional maintenance burdens. This article ends with policy guidelines, which aim to unify the process of electrification with sustainable municipal revenue recovery.