Cape Town – In light of Eskom’s increased prices, the City of Cape Town on Friday said residents on its subsidised lifeline tariff whose property exceeded R1 million would soon be moved to the alternative domestic tariff.
“Price increases from Eskom are having a profound effect on the local economy. With this in mind, it is important that only those customers who are truly indigent continue to be subsidised by other residents,” said the City’s executive deputy mayor Ian Neilson.
The City charges one of two tariffs – the lifeline or domestic. To qualify for the lifeline tariff, which is meant for lower income households, the following criteria must be met: a municipal property valuation of R300 000 or less; average usage of less than 450 kilowatts per hour per month, including any free electricity; and possession of a prepaid electricity meter.
Also qualifying are those receiving a senior citizen or disabled persons rebate in terms of the Rates Policy and those registered as indigent in terms of the Credit Control and Debt Collection Policy. In these cases, the property valuation and metering requirements are null and void.
Neilson explained that the “migration of those currently receiving subsidised electricity but who do not meet the criteria for this subsidy will allow the City to reduce the average tariff increase for 2016/17 to 6.62 percent as opposed to 8.26 percent”.
The migration would begin on October 1, 2016.
African News Agency