‘Although the Eskom-driven electricity price hike is the largest contributor to increasing household costs, the City has worked tirelessly over the past two years to absorb some of Eskom’s increases and do more to assist a greater number of indigent and lower income customers.
‘It was an absolute pleasure to visit one of the City’s social relief recipients, Ms Sikelelwa Ncwadi who invited the City’s Energy Portfolio Chairperson, Councillor Zimkhitha Sulelo and I into her home so we could see for ourselves the difference this assistance is making to her household. Apart from offering subsidised electricity allocations to some of the largest numbers of qualifying residents in the country, we’ve also implemented a significant price reduction for larger families or vulnerable households who maintain a monthly average of 450 units on the highly subsidised Lifeline tariff. In the last financial year, the City raised the number of units that could be bought by Lifeline customers on the cheaper tariff from 350 to up to 600 units a month. In this financial year, the blocks were collapsed into one block on the lower tariff. Importantly, assistance is on offer, but the City must be mindful that help can only be provided in a sustainable manner and within what is allowed within the budget.
‘In winter, we typically use more electricity and this coincides with price increases and drives household costs. Helping our vulnerable households is key, but we also remind all our households that if they use less electricity and water, one can bring costs down. In addition, buying prepaid electricity in bulk is not cheaper. So if they buy prepaid electricity units, buy only what is needed. Buying bulk units could push them into a more expensive tariff category.
‘We thank our customers for their contributions. It enables us to provide electricity services as all income from tariffs go toward service delivery,’ said the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Progressive Lifeline tariff benefits in a nutshell:
· Big price reduction of 44% less to help larger or vulnerable families, averaging 450 units per month – that’s R1,89 less per unit.
· No other city has reduced the price of electricity for indigent households over the last two years.
· Last year the City raised the number of units that could be bought by Lifeline customers on the cheaper tariff from 350 to 600 units a month. This financial year, the blocks were collapsed into one block on the lower tariff.
· Remember, customers must stay on 450 units per month over 12 months.
· Lifeline customers using up to 600 units in a month, will pay R113,94 less compared to two years ago.
The City’s electricity tariff is driven by the Eskom increase. It spends more than 70% of the tariff income to buy the bulk electricity from Eskom. So if Eskom’s price goes up, it makes it much more expensive for the City to buy the power from Eskom too.
To see if you qualify for social support or payment arrangements to settle debt, please visit your nearest customer offices.
Top tips to reduce household costs:
· Use less water; use less power. See how here: https://www.capetown.gov.za/Family%20and%20home/residential-utility-services/residential-water-and-sanitation-services/make-water-saving-a-way-of-life/Think%20water and https://www.capetown.gov.za/Family%20and%20home/residential-utility-services/residential-electricity-services/saving-electricity
· Turn the geyser temperature down to 60°C or put it on a timer.
· Switch to a prepaid electricity meter. It gives households better oversight of consumption with an in-home display, making budgeting easier and eligible customers can then be placed on the Lifeline tariff. See how here: https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/apply-for-an-upgrade-to-a-new-prepaid-electricity-meter
· Only buy the electricity you need – this will keep costs down. When buying in bulk, you move onto the second block for units above the monthly usage threshold, which is more expensive.
