NEWS RELEASE                                                                                                 5 July 2002 

CITY OF CAPE TOWN ALLEVIATES PLIGHT OF POOR 

1 July 2002 marks the first anniversary for the City of Cape Town's free electricity campaign. The allocation allows customers 20kWh free electricity each month, including prepaid meter systems and in blocks of flats. 

Over the past 12 months the City has connected some 20 000 new customers with more than half of those being the poor. The free quota of 20kWh  of electricity has therefore reached over 500 000 households each month. 

"Free electricity - like the free water introduced in May last year - has played a tremendous role in alleviating the plight of the poor", said Councillor David Erleigh, City o Cape Town executive member responsible for Trading Services. Cape Town was the first councils in South Africa to introduce this service to all domestic customers both rich and poor.

This concession only applies to the City of Cape Town's customers and not those served by Eskom. However, the City and Eskom are engaged in high level discussions to resolve this situation. 

"Our prime focus is to alleviate the financial burden on poorer communities. It is also the safety and health risks which are of great concern", said Erleigh. Air pollution from the burning of hydrocarbons which lead to health problems, and the threat of shack fires is reduced.

"We are proud that we are the first city in South Africa to have introduced both free electricity and water and hope that other cities will follow our lead."

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