Electricity pylons carry power from Cape Town's Koeberg nuclear power plant. PICTURE: Reuters/Mike Hutchings/File Photo
Mitchell’s Plain pensioners and the destitute simply cannot afford the latest electricity price hike.
The Plainsman has received several calls from readers who said they have to choose between buying groceries or electricity.
A Lentegeur pensioner, who refused to be named, said he, his wife and daughter could not cover their electricity needs for the month of July.
As from the start of the month, ratepayers have had to fork out 17.6% more for electricity, after the City of Cape Town had Eskom’s 18.49% increase reduced.
Mayor Geordin Hill-Lewis, while tabling Cape Town’s “Building Hope” Budget for 2023/24 in March, said they had made changes to the tariff structure for residents who qualify for the subsidised Lifeline electricity tariff.
Households consuming more than 350 units would pay R3.71 per unit but because of the Lifeline shift those customers would now pay R1.84.
“We have also raised the property value criteria for Lifeline customers to R500 000 – up from R400 000 – to compensate for residents’ property value growth,” he said.
Tafelsig resident Natasha Gertse, founder of Electricity tariffs must fall, a Facebook social media group, who also wrote to the mayor. “These increases are literally killing the citizens of SA,” she said.
In an email dated July 6, she questioned recent home valuations, moving several households from the Lifeline tariff to the Domestic tariff because their properties were now valued at more than R500 000 after the General Valuation (2022).
This made those ratepayers ineligible for rates rebates, indigent or pensioner support, she said.
“These people have now been removed from the Lifeline tariff, being switched over to the domestic tariff automatically, without even a warning.
“Immediately their units have now been changed from R1.60 per unit to R3.51 per unit, also losing out on the free units received monthly, and that's besides the City's increase as of 1st July 2023,” she wrote.
Ms Gertse said this increase was more than 100%, and for most of the people they have been using less than 300 units.
She appeals to the people to stand up against the City.
“They cannot deal with illegal connectivity but run to us working class who have bonds to pay. Leaving us with a choice of electricity over food...
“This cannot go on. It's blatantly done. No checks are done. Valuations were done on assumptions,” she said.
Ms Gertse said besides the electricity, everything else was on the increase, but workers must settle for one increase per year on wages or salaries, which is below inflation.
“You (the government) are making it impossible for us to survive. Nobody is focusing on decent wage/salary increases but more focused on increasing everything else which is an expense to the citizen.
“Electricity, fuel, foods.. Even the things that low income people buy to survive, such as peanut butter, jam, eggs, bread has become unaffordable,” she said.
Ms Gertse said most of the elderly people had been removed from the Lifeline tariff, having to reapply for their indigent grants.
“Frail people need to walk and go through so much, whereas the City can just apply automatically on behalf of everyone who needs it. Especially the elderly, sick and frail people,” she said.
Another Lentegeur resident, who did not want to be named, said she was getting 18 electricity units less.
“For R400 I used to get 142 units now I get 124 units,” she said.
Luthando Tyhalibongo, City spokesperson, said to qualify for the Lifeline tariff, one needs a property value of up to R500 000; or one has to apply and qualify for indigent benefits or for a rates rebate that relates to people dependent on a pension/social grants and one needs to keep one’s usage below 450 kWh per month on average over a 12-month period.
“However, due to the new General Valuation (2022) that the City implements every three or four years, as is required by law, it is often the case that property values have grown in between valuation cycles.
“Thus, those whose property values have grown to above R500 000, who previously qualified, are now on a domestic tariff, not the lifeline,” he said.
Customers who have moved from the Lifeline tariff to the Domestic tariff because their properties are now valued at more than R500 000 after the General Valuation (2022) may, however, qualify for rates rebates, indigent or pensioner support. If they do, they could receive their supply at the Lifeline tariff on application.
“Customers are encouraged to reduce their usage to below 600 kWh per month. This will reduce their costs and keep them within the first block of the domestic tariff which is the lower tariff,” he said.
Lifeline tariff customers using 350 to 600 units will now pay R1.84 in this usage band, compared to R3.15 per unit in 2022/23.
The City has also upped the property value criteria to qualify for the Lifeline tariff, from R400 000 to R500 000. Residents with a property value higher than R500 000 may also still qualify for the Lifeline tariff if their household monthly income is below R7 500.
Pensioners and social grant recipients benefit from the lifeline tariff and rates rebates, with the qualifying limit now R22 000 monthly income, up from R17 500 in 2022/23.
He said the metro continues to offer South Africa’s highest allocation of free water at 15kl, the highest allocation of free sanitation at 10,5kl, and up to 60 free electricity units, the most of all metros linking social relief to property value.
Mr Tyhalibongo said with the current valuation cycle, the City has availed unprecedented levels of relief.
“Where there are residents who are indigent or objectively unable to pay, who have been negatively impacted by the new valuations, there are avenues of assistance available,” he said.