South Africa Power Metering Market Overview, 2031

Market Insights on South Africa Power Metering Market

•According to the research report, "South Africa Power Metering Market Overview, 2031," published by Bonafide Research, the South Africa Power Metering market is anticipated to grow at 12.95% CAGR from 2026 to 2031. South Africa’s power metering market is undergoing a forced and accelerated transformation, driven by Eskom’s aggressive smart meter rollout strategy. The utility has installed more than 800,000 smart meters to date, with a target of 6.2 million meters planned over the next three years. The project, which started in 2025 and will end in 2029, aims to replace outdated conventional and prepaid meters across the country. This massive infrastructure upgrade is essential as the Energy Availability Factor (EAF) reached 70%, surpassing this level more than 22 times since August 2025. The smart meter rollout is critical to eliminating load reduction by 2027, impacting around 1.69 million customers which represents 20% of Eskom’s customer base.
• The market’s evolution is anchored in a regulatory framework administered by the National Energy Regulator of South Africa (NERSA), which approved a 12% electricity tariff hike effective 1 November 2025. The regulator has also issued updated Electricity Trading Rules, requiring Network Service Providers to provide sellers with real-time access to customer meter data in a NERSA-approved format. NERSA’s Metering Code governs installation design, metering equipment maintenance, and data access, ensuring compliance with national standards. The regulator has also approved net billing rules to compensate solar users for power exported to the grid.
• The market faces significant challenges from electricity theft and illegal connections, with approximately 2.1 million households qualifying for Free Basic Electricity (FBE) in Eskom supply areas, yet only 485,000 currently benefit. Eskom’s Load Reduction Elimination Strategy, launched by Minister of Electricity and Energy Dr Kgosientsho Ramokgopa on 25 September 2025, sets a clear roadmap to strengthen distribution networks and address high-risk isolated areas.
• Eskom’s Generation Recovery Plan and improved maintenance practices have contributed to significant reductions in load shedding, with only 26 hours of planned power cuts experienced in 2025. Over the next five years, Eskom will invest approximately R320 billion to sustain and modernise electricity infrastructure, including smart meters, with 14% allocated to Distribution. Eskom reported a R16 billion profit after tax for the financial year ending March 2025, signalling improved financial stability.

Competitive Landscape of South Africa Power Metering Market

• The competitive landscape of South Africa’s power metering market is dominated by Eskom, the national vertically integrated utility, which orchestrates the procurement, deployment, and operation of the entire smart metering infrastructure as the primary buyer of metering hardware. The utility is procuring smart meters through open tenders, with suppliers being sourced in tranches to manage operational risks such as storage, theft, and damage.
• Eskom’s acting Group Executive for Distribution, Agnes Mlambo, has emphasised that smart meters are being procured and delivered in tranches to manage operational risks. The project is replacing conventional and prepaid meters with smart meters featuring advanced metering infrastructure.
• Key players supplying smart meters to Eskom include global technology leaders, though specific manufacturer names are not detailed in the public domain. Eskom is also deploying Distributed Energy Resources (DERs), with 250 microgrids planned over the next five years to support demand flexibility and reduce energy losses. A regulatory framework for microgrids is being developed in collaboration with NERSA and other stakeholders to establish guidelines and standards for implementation.
• Entry barriers into this market are substantial, given the need to comply with NERSA’s Metering Code, the Electricity Regulation Act, and the stringent technical specifications set by Eskom. The value chain is heavily integrated, with Eskom controlling the design, procurement, installation, and operation of the metering infrastructure. Municipalities face no requirement to modernise metering systems, leading to uneven adoption and limited data-driven grid optimisation.
• Consumer behaviour is evolving as the smart meter rollout enables near real-time detection of suspicious activity, supporting more effective investigations. The Department of Mineral Resources and Energy (DMRE) is being separated into two departments by April 2025, with the newly established Department of Electricity and Energy advancing transmission infrastructure development.

South Africa Market Dynamics

Driver: Government-Mandated Smart Meter Rollout
Eskom’s accelerated smart meter rollout, targeting 6.2 million meters over the next three years, is the primary driver of the power metering market. The Load Reduction Elimination Strategy, launched by Minister Ramokgopa, mandates smart meter installations to strengthen distribution networks. This creates sustained, non-discretionary demand for metering hardware and services across all customer segments.

Challenge: Electricity Theft and Illegal Connections
A significant challenge is the rampant electricity theft and meter tampering that continue to cause equipment overload and unsafe conditions. While Eskom is rolling out “smart” prepaid meters to combat theft, it is not the silver bullet many hoped it would be. Load reduction remains essential as a preventative measure, impacting 1.69 million customers.



Trend: Integration of Distributed Energy Resources and Smart Grid Technologies
Eskom is diversifying its technology mix, developing a pipeline of clean energy with at least 2GW of projects ready for execution by 2030. The utility is rolling out 250 microgrids over the next five years. Smart meters with bidirectional capability are being installed for solar users, with Eskom offering free smart meters for systems up to 50kVA.

Segment Analysis

South Africa Power Metering Market By Phase
• Single-phase meters are the dominant segment in the South African market, serving as the standard for residential households. The smart meter rollout has focused on replacing conventional and prepaid single-phase meters, with Eskom aiming to install 800,000 smart meters in 2025/2026.
• Three-phase meters, while a smaller segment by volume, are critical for commercial and industrial sectors where they monitor power quality and manage heavy loads. Municipalities offer three-phase prepaid metering for connections up to 60 amperes.

South Africa Power Metering Market by Technology
• Smart meters dominate the only growing technology segment, with Eskom having installed more than 800,000 smart meters to date. The project started in 2025 and will conclude in 2029, targeting 6.2 million meter replacements. Smart meters enable real-time usage tracking, automatic readings, and accurate billing, eliminating estimated bills.
• Prepaid meters remain widely used, with all new connections being metered by prepaid meters in many municipalities. Eskom is phasing out CTS meters, transitioning to STS-compliant prepayment systems.

South Africa Power Metering Market by End-user Industry
• Residential customers represent the largest end-user segment by volume, being the primary focus of the national smart meter rollout. The smart meter programme supports Eskom’s efforts to expand Free Basic Electricity access, with 2.1 million households qualifying for FBE.
• Commercial customers, including offices and retail spaces, benefit from smart meters for accurate billing and energy management.
• Commercial credit meter tariffs are effective from July 2025. Industrial customers demand advanced metering solutions, often requiring three-phase meters for power quality monitoring and load management.
• Industrial tariffs include demand charges. Utility customers, such as Eskom and municipalities, leverage the vast network of meters for grid management and system optimisation. Eskom provides meter installation and replacement services on behalf of municipalities.

South Africa Power Metering Market By Application
• Billing and revenue assurance remain the foundational application, ensuring accurate consumption measurement and revenue collection. Eskom’s smart meter rollout is designed to protect revenue and enable remote disconnection for non-payment. The rollout of smart meters has enabled near real-time detection of suspicious activity.
• Energy management is a rapidly growing application, with smart meters allowing customers to see consumption and budget energy costs.
• Grid management is a critical application, with smart meters enabling remote monitoring, troubleshooting, and quick detection of outages and faults. Load monitoring is used to track real-time consumption patterns and manage peak demand.
• Demand response is emerging as an application enabled by smart meters, helping customers reduce peak-period consumption and strengthen grid stability.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Power Metering Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Phase
• Single Phase
• Three Phase

By Technology
• Analog Meters
• Digital Meters
• Smart Meters

By End-user
• Residential
• Commercial
• Industrial
• Utility

By Application
• Energy Management
• Billing and Revenue Assurance
• Load Monitoring
• Demand Response
• Grid Management