NEWS RELEASE                                                                                       22 February 2001

FREE BASIC ELECTRICITY DUE BY JULY

Essential and costly changes to pre-paid electricity meters and vending machines, coupled with negotiations with Eskom and the National Electricity Regulator, will cause a short delay in the introduction of free basic electricity to the 635 000 consumers in the Cape Metro area.

The target date for implementation of the service by the City of Cape Town Council is July 1 this year, two months after free basic water comes on tap in May.

To fund the free electricity service, which will cost about R34 million a year at current tariffs, all consumers will have to pay 1,6 per cent more as a subsidy.

In line with the fundamental principle of equity, the service will be applied to all 470 000 municipal domestic connections, of which 291 000 are pre-paid, and 165 000 Eskom customers, of which 116 000 are pre-paid.

Key issues regarding the service emerged at a workshop for City of Cape Town councillors held in Parow today.

Senior city officials explained that concerns to be addressed included equity, conservation of the energy source, effective credit control, tariffs, a clear communication strategy and the implementation programme.

Free basic electricity is being introduced mainly to give the poorest of the poor access to a modern energy source that will improve employment and educational opportunities as well as the quality of life.

Mike Marsden, Interim Services Co-ordinator for the City of Cape Town, said initial implementation proposals were to make one free allocation per meter.

“We also plan to prevent the benefit being carried over from one month to the next,” he said.

Councillor David Erleigh, Executive Committee member responsible for City Infrastructure, said the benefit equated to the cost of two loaves of bread, two torch batteries, the use of a sewing machine for 235 hours or an iron for 20 hours.

“This will make a significant improvement to the quality of life for the poor as well as providing educational and employment opportunities,” he said.

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