More free water and electricity for qualifying households is among the cost-of-living measures the Western Cape Government wanted the National Treasury to consider ahead of the Medium-Term Budget Policy Statement, Cape {town} Etc reports.
Originally published via Cape {town} Etc
On 21 October, the province proposed increasing the general monthly free-water allocation for qualifying indigent households from six to 10.5 kilolitres and moving towards a 150kWh monthly energy threshold, compared with the usual 50kWh electricity allocation. These proposals are not yet policy.
The proposal comes amid wider calls for municipal relief, with GOOD Party leader Brett Herron arguing that Cape Town could use its reported R7 billion surplus to ease residents’ cost-of-living pressures, according to EWN’s report.
Premier Alan Winde said rising costs are ‘particularly acute for vulnerable residents’. Finance MEC Deidré Baartman said people ‘continue to feel the effects of rising fuel, food and transport costs’, according to the province’s statement.
The government said research with Stellenbosch University found the current package no longer supports a ‘dignified standard of living’.
Who qualifies now?
Municipalities set their own indigent rules. In Cape Town, homeowners earning R7 500 or less monthly may qualify, subject to conditions including owning one property and living there full-time, according to the City of Cape Town.
Eskom’s latest update says 550 126 customers are registered for free basic electricity, around 26% of its estimated 2.1 million eligible customers. Read Cape {town} Etc’s guide to claiming free basic electricity.
Households should check municipal rules and register. Wider changes would require further decisions and implementation details.
What did Godongwana say?
The Western Cape’s proposed increases were not specifically announced or endorsed in the Medium-Term Budget Policy update on Wednesday. However, Godongwana did announce additional funding for free basic municipal services.
An extra R21.8 billion will be allocated to the local government equitable share over the medium term to cover higher bulk costs associated with free basic water, sanitation, electricity and refuse removal. Government currently provides these services to more than 11 million households.
Godongwana said the additional funding was intended to help municipalities deal with financial pressures, but stressed that the issue could no longer be only about resources and that municipalities needed to improve financial management and service delivery.
He did not announce a change to the current national free-service thresholds, nor did he specifically address the Western Cape’s proposal. This means the province’s proposed increases, for the time being, remain proposals and would require further decisions and implementation details.
Originally published via Cape {town} Etc
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