City of Cape Town’s indigent grant 'not enough' to offset high electricity tariffs

Cape Town residents protesting outside City offices over the weekend. Picture Tracey Adams/African News Agency(ANA)

Cape Town residents protesting outside City offices over the weekend. Picture Tracey Adams/African News Agency(ANA)

Published Sep 7, 2021

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Cape Town - The Stop COCT group has questioned the City’s intentions with the Indigent Grant Campaign Drive which seeks to inform residents about the relief available to homeowners as well as to facilitate the registration and application process.

The group said this drive came 50 days before the municipal elections and at a time when Capetonians were voicing their rejection of the “high” electricity tariffs.

The City said R3.4 billion in relief was available to qualifying and registered indigent customers and currently more than 40% of residents benefited from some level of financial rates and services relief.

Mayoral committee member for urban management Grant Twigg said the uptake of indigent support among City residents remained relatively low.

“We are therefore embarking on another indigent grant campaign to increase the number of residents getting rates and services relief. The campaign will include the distribution of pamphlets, sessions with community based organisations and loud-hailing in specific areas,” he said.

Stop COCT founder Sandra Dickson said the group received numerous reports on the huge amount of red tape that has to be navigated to qualify for the grant. She said this ranged from commissioned affidavits to first applying for a Sassa pension before approaching the City.

“Where is the relief for the working class suffering the effects of Covid-19, lost jobs and having to live with pay cuts or no salary increases, and those earning a bit above this cut-off?

“According to deputy mayor Ian Neilson it is impossible to bring relief to the working class by lowering the electricity tariffs in any way. The City says it needs the income to provide services and cover its costs but this is hard to fathom as the City currently has access to R18bn in cash reserves and continues to expand its executive numbers,” she said.

Ratepayer Adele Pote said the free basic allocation amount for electricity and water for indigents fails to take into account the total number of people living on the property, including backyard dwellings.

Mayco member for finance Ian Neilson said the indigent grant was in addition to the R4.1bn the City was offering as a debt write-off incentive for historic debt.

“We also continue to assist residents and businesses that have been severely affected by Covid-19 and the lockdowns. Entering into a formal payment arrangement is key. Residents and businesses in need of support should please contact the City to see if they are able to enter into a formal payment arrangement agreement,” he said.