# NFBE

- Link: https://dearsouthafrica.co.za/nfbe/
- Published: 2020-11-27T13:59:18+02:00
- Author: dearSA

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### The National Energy Regulator (NERSA) has called for public comment on the review of the National Free Basic Electricity Rate.

A review of the Methodology for the National Free Basic Electricity (NFBE) Rate 
that Eskom charges the municipalities to supply Free Basic Electricity (FBE) to 
households in the Eskom supply areas within the municipal boundaries.

### **1221**** **participants (closed 7 December)

[view DearSA's report on the public participation ](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/12/20190815/NFBE-report-.pdf)

[view a summary of the review ](https://dearsouthafrica.co.za/nfbe/summary)

[click to download a PDF of the public comments ](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/12/20190820/NFBE-web-s.pdf)

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## [CLOSED] Have your say – shape this policy.

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### SUMMARY

 1. Municipalities have the constitutional responsibility to provide basic services,
    and the equitable share allocation enables them to do so. In areas where Eskom 
    is the supplier, the FBE is provided on behalf of municipality by Eskom. In such
    areas, the municipality enters into an agreement with Eskom which covers households
    that are in the Eskom supply areas within the municipality.
 2. The National Energy Regulator of South Africa (NERSA) developed a methodology to
    determine the National Free Basic Electricity (NFBE) rate. The tool is used annually
    to determine the NFBE rate that Eskom charges the municipalities for supplying 
    FBE on its behalf. The methodology was approved in May 2011, and reviewed in 2013
    and 2017.
 3. The purpose of the review is to enhance FBE regulation. Certain sections of the
    mechanism have been revised to align objectives and ensure that the process of 
    determining the FBE rate is fair and transparent.
 4. One lesson learned through the previous methodology was that some of the sections
    were not clear on their intended objectives, particularly on when volume forecasts
    made by Eskom are not met.

### DOWNLOAD DOCUMENTS

 * [NERSA notice](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/11/20190834/Notice-review-of-the-methodology-FBE-by-Eskom.pdf)
 * [NFBE Methodology](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/11/20190833/National-Free-Basic-Electricity-rate-methodology.pdf)
 * [Consultation paper](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/11/20190833/Consultation-paper-ELS-NFBE.pdf)

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