Prepaid electricity meters can both alleviate and exacerbate energy poverty, depending on their implementation
Pre-paid electricity meters are increasingly being used in South Africa to control household energy use. In an interview with the University of Cape Town Radio, researcher Isaac Nunoo explained that their impact on energy poverty is complicated. On the one hand, they help households to budget for energy, which can reduce waste and increase energy efficiency. But they can also force low-income households into self-rationing, notably in food consumption, resulting in inadequate access to electricity.
Nunoo explored this dichotomy, focusing on the impact of clean and dirty energy sources on household energy poverty in the context of cooking and heating. Low-income households in South Africa receive a fixed amount of free electricity each month through the Free Basic Electricity (FBE) programme. The Reconstruction and Development Programme (RDP) aims to eradicate poverty by promoting economic growth and equality in a post-apartheid society. By providing free electricity and energy-efficient appliances, these policies aim to reduce energy poverty.
Nunoo's research highlights the importance of combining technological advances with social innovation to ensure equitable access to energy. He conducted this research at Charles University as part of the work package on the impact of climate change on the environment. A graduate from University of Cape Town’s School of Economics, Nunoo is currently an energy economist at the World Bank in Washington.