How Smart Are South Africa’s Smart Prepaid Meters – and for Whom?

Smart prepaid meters are often marketed as a win-win option. Landlords and corporations can reduce the risk of unpaid bills, municipalities and utilities improve revenue collection, and residents get real-time insight into how much electricity they’re using and what it costs. You can buy electricity in smaller chunks throughout the month, top up from an app or retailer, and see your remaining balance almost instantly.

Smart prepaid meters provide convenience to landlords and tenants

But the “smart” technology alone doesn’t guarantee a fair or trusted experience. As ESI Africa states, smart meter rollout in African countries is still in its infancy, and most adoption research remains heavily Euro- and US-centric. However, as they point out, smart meters have major benefits for all.

Smart Meters are only as Smart as their Management.

“Incorporating smart meters into the grid provides for monitoring and control – consumers can remotely manage their energy consumption while utilities can manage and control the electricity supply, billing and monitoring of a finite resource.” ESI Africa

In most cases, residents don’t get to decide which meter they use. That choice is made by landlords, managing agents, or municipalities. It just depends on where you live. Even if you own your house, you may be forced to pay the municipality directly rather than install a prepaid meter. Furthermore, in South Africa’s high-tariff, load-shedding world, the way prepaid meters are owned, priced, and dictate matters more than anything. 

We’re going to look at how prepaid electricity works in SA, then zoom in on landlord-owned smart sub-meters to unpack a key question behind every installation: Who are these meters really smart for?

How Electricity Prepaid Meters Work in South Africa

Most South Africans are familiar with the basic prepaid electricity model. Instead of getting a monthly bill from the state-owned electricity supplier, Eskom, you pay for electricity upfront. You can buy a token from a retailer, ATM, online from your bank, or via an app, and load it on the meter. Then, your balance will decrease as you use power in your home.

For municipalities and Eskom, prepaid meters reduce the risk of non-payment and remove the need for manual meter reading. For residents, they offer visibility and control. You see what you spend and can spread purchases over the month.

Two Main Options: Municipal Meters vs Landlord-Owned Sub-Meters

In residential settings, there are two main types of prepaid meters.

Municipal or Eskom Prepaid Meters (Primary Meters)

These are installed and owned by a municipality or by Eskom on the main supply to a property. The account holder, commonly the owner, applies for the meter, pays any connection or conversion fees, and then buys electricity from official vendors at the approved tariff.

Even when tenants live on the property, the relationship regarding a municipal or Eskom prepaid meter remains primarily between the owner and the utility. The tenant may reimburse the owner for electricity, pay a flat amount included in the lease, or, in some cases, load credit directly onto the prepaid meter themselves. But the municipality or Eskom still controls the meter, tariff, and rules, not the landlord.

Landlord-Owned Prepaid Sub-Meters (Secondary Meters)

Sub-meters, also known as secondary meters, are installed behind the main municipal or Eskom meter. They are typically used where:

• There are multiple dwellings on one erf or property (a main house plus cottages or flatlets).

• A block of flats, a townhouse complex, or a mixed-use building shares a bulk supply.

• A landlord or body corporate wants to allocate costs and manage risk unit by unit.

In this model, the landlord, body corporate, or managing agent owns and controls the sub-meter infrastructure, often using a specialist sub-metering company to supply hardware and a vending platform. Residents buy prepaid electricity for their unit, but the money ultimately goes towards paying the bulk municipal or Eskom account.

Although electricity is supposed to be billed according to prescribed tariffs, municipal and Eskom accounts often include seasonal charges, fixed fees, demand charges, and other variable or estimated costs, making accurate recovery from tenants a significant challenge for property managers. The degree of transparency between landlords and tenants ultimately determines the comfort of their relationship.

What Makes a Prepaid Meter “Smart”?

Smart prepaid meters take the familiar “pay before you use” model and add data, automation, and convenience on top.

On the technical side, they can be read and managed remotely, which saves time and removes the need for manual meter readings. They record usage in more detail, so it’s possible to see how much power your home uses by day or by hour. They also integrate with vending platforms so landlords, bodies corporate, and utilities can manage multiple meters from a single system.

For residents, the potential value lies in the services that sit around the meter: 

• apps or web portals that show recent purchases, usage history, and remaining balance

• flexible top-up options

• timely alerts before the power runs out. 

When these pieces work together, a smart prepaid meter doesn’t just protect revenue; it genuinely helps households plan better and avoid surprises.

What Drives Acceptance of Smart Prepaid Meters?

From a resident’s point of view, the question is rarely “Is this technology advanced?” but rather “Does this make my life easier and feel fair?” Several themes tend to shape the answer.

Perceived Value and Control

Smart meters are most welcome when people feel they gain something. They might provide better insight into their usage, fewer billing disputes, and/or the ability to spread purchases across the month without losing track. Clear, easy-to-read information about consumption and cost is often more convincing than any technical specification.

Ease of Use and Everyday Convenience

Top-up options, payment methods, and simple interfaces matter. If residents can buy credit through channels they already use, see their balance at a glance, and get quick help when something goes wrong, the system feels “smart” in a very practical sense.

Trust in Who Operates the System

For many residents, trust is as much about people and institutions as it is about devices. Knowing who owns the meter, who sets the tariff, and who to contact if there’s a problem goes a long way toward building confidence. Responsible landlords and reputable sub-metering partners can position smart meters as a neutral, rules-based way to handle electricity, rather than a point of tension.

Perceived Fairness and Transparency

Acceptance improves when the tariff, any service fees, and the way shared costs are allocated are explained in plain language and embedded in the lease or scheme rules. When residents can see how the numbers are made up, they’re more likely to view the system as fair and less likely to assume there is hidden profit in the background.

Stories and Proof

Word of mouth in complexes and neighbourhoods can either support or undermine smart metering. Installations where communication is clear, support is responsive, and costs align with expectations create advocates. Poor experiences do the opposite. For providers who believe in smart meters, every well-run site becomes a proof point.

Sub-Metering on the Ground: Landlord vs Tenant Perspectives

Why Landlords and Bodies Corporate Favour Smart Prepaid Sub-Meters

From the owner’s side, smart sub-meters often make clear sense:

• Reduced arrears risk: Electricity is paid upfront, not months later, which improves cash flow and reduces bad debt.

• Simplified management: Automated readings and consolidated reports for multiple units save time and admin, especially in larger buildings or sectional title schemes.

• More accurate allocation of shared costs: Instead of a flat “electricity contribution,” usage and sometimes communal consumption can be allocated more fairly.

• Faster tenant changes: When tenants move in or out, there is no long wait for final readings and adjustments.

These are legitimate benefits. They also highlight why sub-metering is becoming common in sectional title schemes, student housing, and multi-unit rentals.

Why Tenants May Resist or Question Smart Prepaid Sub-Meters

Tenants often move into a home where the metering decision has already been made, so they judge the system entirely on how it feels day to day. When smart sub-meters are implemented well, tenants appreciate being able to see exactly what they use, avoid end-of-month surprises, and know that they’re paying for their own consumption rather than subsidising neighbours.

Concerns usually arise when there is uncertainty rather than from the technology itself. This relates to uncertainty about how tariffs and fees are structured, what happens if there is a fault or a disputed transaction, or how disconnections are handled in practice. Many of these worries can be reduced upfront by giving tenants clear written information, showing them how to use the meter or app, and explaining their rights and responsibilities.

In that sense, acceptance has less to do with whether a meter is “smart” and more to do with whether residents feel informed, heard, and treated consistently.

Questions Residents Should Ask Before Accepting a Smart Prepaid Sub-Meter

Because residents rarely choose the metering system, informed questions become their main lever of control. Useful questions include:

• Who owns and controls the meter? Is it the municipality, Eskom, the landlord, the body corporate, or a third-party company?

• What tariffs and fees apply? What is the rate per kWh, and are daily, monthly, or other charges applicable? 

• How do I buy electricity? Which channels can I use (shops, apps, online), and are there transaction fees?

• What happens if something goes wrong? Who do I contact for support? What is the expected response time? 

Clear, written answers to these questions don’t just protect residents; they also help responsible landlords and meter providers build trust.

When Is a Smart Meter Actually Smart?

Smart prepaid meters are not a silver bullet for South Africa’s electricity challenges, but they are a powerful tool. In particular, well-designed sub-metering solutions can help landlords and corporations manage risk, simplify administration in multi-unit properties, and allocate costs more accurately across individual units. For residents, these same systems can bring clarity, flexibility, and better budgeting – provided fair tariffs, clear agreements, and responsive support back them.

Asking “How smart are these meters, and for whom?” is not an attack on the technology. It’s an invitation to design and operate smart metering and sub-metering solutions so that they deliver tangible benefits on both sides of the plug. 

When landlords, bodies corporate, sub-metering partners, and residents share the same information and expectations, smart prepaid meters can live up to their name: not just technically advanced but also practical and widely accepted.

How smart is YOUR electricity meter?