When we think of entrepreneurial spirit, we often picture innovation, resourcefulness, and a drive to create value. However, the recent arrest of a Fochville farmer accused of apparently running an illegal electricity supply operation reveals the darker side of this ambition. This case, involving over 600 informal households connected to potential illegal electricity, raises serious questions about the boundaries of entrepreneurship and the consequences of bending them too far.

The Scheme That Perhaps Went Too Far

The farmer in question, whose heavily guarded property in Leeupoort became the hub of this large-scale illegal operation, managed to bypass legal channels for years. With transformers and metering equipment allegedly stolen from Eskom and City Power, he supplied informal settlements with electricity in exchange for payment. This “business” reportedly caused a financial loss of over R6.6 million to Eskom, a utility already grappling with financial and operational challenges.

Investigations into the farm began as far back as 2018. Despite multiple disconnections, the farmer apparently repeatedly reconnected his operation, demonstrating a brazen disregard for the law. Authorities finally acted, recovering two transformers and 150 meters during a joint raid, and the farmer now faces charges of tampering with essential infrastructure, malicious damage to property, and illegal electricity resale.

The True Cost of Illegal Enterprise

This incident is part of a broader problem. Eskom reports that illegal electricity connections and theft cost the utility billions annually. In the 2022/23 financial year alone, non-technical losses, including illegal connections, amounted to R5.5 billion—approximately R15 million per day. These activities contribute directly to South Africa’s persistent load-shedding woes, as illegal connections increase demand unpredictably, overload infrastructure, and cause outages.

While some might argue that the farmer was meeting a real need in underserved communities, the consequences of his actions paint a different picture. Illegal connections not only potentially jeopardise public safety but also disrupt legitimate power supply, worsen load-pressures, and erode trust in critical infrastructure. Eskom’s senior manager for maintenance and operations, Mashangu Xivambu, has emphasized that eradicating illegal connections in Gauteng alone equals two stages of load-shedding. Yet, as this case shows, even when illegal connections are removed, they often reappear—a cycle that perpetuates Eskom’s challenges.

A Dangerous Precedent

The Fochville case also highlights the perils of unchecked ambition. This operation, while ingenious in its execution, is potentially illegal, unsafe, and exploitative. By tampering with critical infrastructure, the farmer not only potentially endangered lives but also undermined efforts to build a sustainable electricity network.

Striking a Balance

Entrepreneurship, at its best, drives progress and meets unmet needs. But as this case demonstrates, it must operate within the boundaries of the law and ethical responsibility. South Africa’s electricity crisis, exacerbated by illegal activities like this, is a stark reminder that shortcuts and self-serving schemes are not the answer.

For those living in informal settlements, the story underscores a broader systemic issue: the need for equitable access to basic services. Until these communities are adequately served, the temptation for similar schemes will remain strong.

Moving Forward

As Eskom continues its efforts to combat electricity theft, including through legal action and collaboration with law enforcement, it is essential to address both the symptoms and the root causes of this issue. Public reporting of illegal activities and stronger community partnerships can play a vital role in tackling these crimes.