NEWS RELEASE                                                                                                 29 March 2001

FREE ELECTRICITY BRINGS NEW OPPORTUNITIES TO THE POOR

The provision of free basic electricity will open new opportunities for the self-development of the poor.

This was said by Councillor Chris Hattingh, chairperson of the Trading Services portfolio committee at a meeting of the full City of Cape Town Council today.

Speaking in the debate over the Council’s decision to provide free basic electricity to all domestic households in the Cape Metropolitan Area, Councillor Hattingh said the free electricity policy would enable poor communities to embark on an ongoing process of self-development.

“It will uplift the quality of life in the sense that the poor will have access to educational programmes on television and they will be able to take advantage of the business opportunities presented by the freezing, heating and lighting abilities of electricity,” he said.

Students would be able to work under electric light, and the free quota would allow micro business people to use sewing machines, irons and welding equipment. For some, it would open up the world of the computer and the Internet.

“This decision by the Council has the potential to dramatically change the lives of the poorest of the poor,” said Councillor Hattingh.

Free basic electricity for all domestic consumers supplied by the Council is to be introduced from 1 July. However, a problem is that ESKOM, which supplies 25 per cent of consumers directly, has not yet agreed to make the same concession.

“We are trying to get a commitment from ESKOM so that this benefit can be enjoyed by all our people,” Councillor Hattingh said. “Surely, if this Council can overcome major technical problems, ESKOM can show a little flexibility.”

He added that tariffs would have to be adjusted from July to compensate for the cost of providing free basic electricity. An initial tariff increase of 1,6 cents would be applied across the board.

He said those using less than 394 kWh would probably pay less than they do at present, while the larger consumers would pay more.

Councillor Hattingh called on all members of the Council to support an initiative that, for the first time, would bring First World comforts to the poor.

“The provision of free basic electricity is a major step forward that will make a big difference to the lives of many of our people,” he said.

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