Name:
Title: Investigating the socioeconomic impact of
high-cost electricity on the livelihood of Soweto
Residents
Supervisor: Mr Moseki Modise
I declare that this assignment is my own, original
work. Where I have used source material, it is
acknowledged in accordance with departmental
requirements. I understand what plagiarism is and I
am aware of the departmental policy on it.
,L. Mohlamme 25 October 2021
Table of Contents PAGE
CHAPTER 1: INTRODUCTION
1. Background.......................................................................................................
1.1 Global Energy Crisis…………………………………………………………………
1.2 Africa Energy Crisis………………………………………………………………….
1.3 Energy crisis in South Africa …………………………………………………….…
2. Problem Statement……………………………………………………………………
3. Research Aim…………………………………………………………………………
3.1 Research Objectives………………………………………………………………..
3.2 Research Questions…………………………………………………………………
4. Importance of the Study……………………………………………………………….
CHAPTER 2: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
CHAPTER 3: RESEARCH METHODOLOGY
CHAPTER 4: RESEARCH FINDINGS
CHAPTER 5: ANALYSIS OF THE FINDINGS
2
, CHAPTER 1
1. Background
The aim of this study is to investigate the high cost of electricity, where in the world it has
been introduced, why it was introduced and how it is impacting on development. Pre-paid
metering can be well defined as a technological tool/system used to manage the
usage/consumption of electricity by individuals or groups in the communities. Different
scholars explain pre-paid technology in their own different understanding because there is
no formal explanation of pre-paid technology due to lack of enough literature. According to
(Heymans et al, 2004 and Smith 2016:7), pre-paid is a debit operated meters system in
which clients by electricity and lead it onto the meter before consumption.
This technology allows communities / individuals with their own connection to manage
their consumption within limits they can afford, without the risk of arrears, disconnection, or
unexpected debt (Heymans at el, 2004:23). The pre-paid metering as it was introduced in
South Africa its main aim was to try and reduce the high cost of electricity and to relief the
communities from big debts therefore, by allowing the communities to manage the usage
of electricity according to their income or affordability. This technology is mostly applied by
countries globally; in Africa and South Africa because is found to be more effective and the
communities can manage their usage and become debt free.
3
, 1.1 Global Energy Crisis
It is imperative to firstly understand the global energy crisis before we bring it to our
respecting countries. It is a common knowledge recently that energy crisis is our biggest
challenge economically, socially, and politically. Coyle and Simmons, 2014:1, states that,
planet earth is facing and energy crisis owing an escalation in global energy demand. Due
to this global energy crisis faced worldwide a united form in addressing the challenge must
be developed to perverse the natural resources and avoiding burning of fossil fuels. With
energy crisis that is faced globally the energy distribution and future interconnected grid
networks is a growing interest to national energy utilities, with emerging opportunities for
greater cooperation between nations in both energy trading and in ensuring energy
availability and security of supply (Coyle and Simmons, 2014:5).
Moreover, Coyle and Simmons (2014:6) states that, a review and comparison of energy
policy in the US and the EU is made, including the important 1997 Kyoto Protocol and
subsequent UN energy and climate convention of energy policy directives and trends in
China, Russia, Brazil and India. It is imperative to mention that the prepaid meter was
introduced globally because most of the developed countries adopted the same
technology due to energy challenges in developing countries. Furthermore, these
countries considered other alternative energy sources to address their energy challenge,
which are, solar, wind, biofuels, gas and nuclear in order to increase their energy access
and give the communities choice to use these energy mix and not rely on the grid only and
safe high cost of electricity. Globally the energy mix still dominated by fossil fuels and they
account for more than 80% of energy consumption and the four major source of energy
are from oil, coal, gas and hydroelectric power.
Energy mix report
1.2 Energy crisis in Africa
1.2.1 Rwanda
As the population and economy of Rwanda continue to grow, the energy consumption in
Rwanda has shown a continuous rise consistently to the population and modern socio-
economic life desired in the past few decades. The Rwanda’s by 2018 had increased its
4
Title: Investigating the socioeconomic impact of
high-cost electricity on the livelihood of Soweto
Residents
Supervisor: Mr Moseki Modise
I declare that this assignment is my own, original
work. Where I have used source material, it is
acknowledged in accordance with departmental
requirements. I understand what plagiarism is and I
am aware of the departmental policy on it.
,L. Mohlamme 25 October 2021
Table of Contents PAGE
CHAPTER 1: INTRODUCTION
1. Background.......................................................................................................
1.1 Global Energy Crisis…………………………………………………………………
1.2 Africa Energy Crisis………………………………………………………………….
1.3 Energy crisis in South Africa …………………………………………………….…
2. Problem Statement……………………………………………………………………
3. Research Aim…………………………………………………………………………
3.1 Research Objectives………………………………………………………………..
3.2 Research Questions…………………………………………………………………
4. Importance of the Study……………………………………………………………….
CHAPTER 2: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
CHAPTER 3: RESEARCH METHODOLOGY
CHAPTER 4: RESEARCH FINDINGS
CHAPTER 5: ANALYSIS OF THE FINDINGS
2
, CHAPTER 1
1. Background
The aim of this study is to investigate the high cost of electricity, where in the world it has
been introduced, why it was introduced and how it is impacting on development. Pre-paid
metering can be well defined as a technological tool/system used to manage the
usage/consumption of electricity by individuals or groups in the communities. Different
scholars explain pre-paid technology in their own different understanding because there is
no formal explanation of pre-paid technology due to lack of enough literature. According to
(Heymans et al, 2004 and Smith 2016:7), pre-paid is a debit operated meters system in
which clients by electricity and lead it onto the meter before consumption.
This technology allows communities / individuals with their own connection to manage
their consumption within limits they can afford, without the risk of arrears, disconnection, or
unexpected debt (Heymans at el, 2004:23). The pre-paid metering as it was introduced in
South Africa its main aim was to try and reduce the high cost of electricity and to relief the
communities from big debts therefore, by allowing the communities to manage the usage
of electricity according to their income or affordability. This technology is mostly applied by
countries globally; in Africa and South Africa because is found to be more effective and the
communities can manage their usage and become debt free.
3
, 1.1 Global Energy Crisis
It is imperative to firstly understand the global energy crisis before we bring it to our
respecting countries. It is a common knowledge recently that energy crisis is our biggest
challenge economically, socially, and politically. Coyle and Simmons, 2014:1, states that,
planet earth is facing and energy crisis owing an escalation in global energy demand. Due
to this global energy crisis faced worldwide a united form in addressing the challenge must
be developed to perverse the natural resources and avoiding burning of fossil fuels. With
energy crisis that is faced globally the energy distribution and future interconnected grid
networks is a growing interest to national energy utilities, with emerging opportunities for
greater cooperation between nations in both energy trading and in ensuring energy
availability and security of supply (Coyle and Simmons, 2014:5).
Moreover, Coyle and Simmons (2014:6) states that, a review and comparison of energy
policy in the US and the EU is made, including the important 1997 Kyoto Protocol and
subsequent UN energy and climate convention of energy policy directives and trends in
China, Russia, Brazil and India. It is imperative to mention that the prepaid meter was
introduced globally because most of the developed countries adopted the same
technology due to energy challenges in developing countries. Furthermore, these
countries considered other alternative energy sources to address their energy challenge,
which are, solar, wind, biofuels, gas and nuclear in order to increase their energy access
and give the communities choice to use these energy mix and not rely on the grid only and
safe high cost of electricity. Globally the energy mix still dominated by fossil fuels and they
account for more than 80% of energy consumption and the four major source of energy
are from oil, coal, gas and hydroelectric power.
Energy mix report
1.2 Energy crisis in Africa
1.2.1 Rwanda
As the population and economy of Rwanda continue to grow, the energy consumption in
Rwanda has shown a continuous rise consistently to the population and modern socio-
economic life desired in the past few decades. The Rwanda’s by 2018 had increased its
4
