After City Power reversed additional charges to residents who normally pay Lifeline Tariffs in May and June, of those most affected are pensioners who consume little electricity and they are concerned about the increase.
Although the charges have been reversed by the power utility, the City of Johannesburg’s group finance spokesperson, Maphologela Kgamanyane, said once all customers have been notified, those who can afford it will no longer pay the cheaper Lifeline tariffs. This tariff excluded users who consume less than 500kW a month from paying a monthly service and network charge. This means some residents will now start paying these costs.
With the implementation of the Expanded Social Package (ESP) package, your usage will no longer be the sole determinant. Now all customers have to apply for their free electricity through the ESP programme. This means that if you do not qualify for the package, you do not qualify for the Lifeline Tariff.
But Roland Solomon, a pensioner who lives in Blairgowrie, since the tariff change, his account increased by a few hundred rands. He says he is concerned about his costs going up since he no longer has the ability to earn extra income. “While I do have a roof over my head, I fear what will happen going forward.”
Alex News has received many calls, specifically from pensioners with similar concerns.
Even though City Power did not initially communicate the changes clearly and consequently had to reverse the charges, the changes will inevitably still come.
Maphologela said the reality is that once the Lifeline tariff is taken away from customers who do not qualify for the package, their bills will inflate. “The Lifeline Tariff was designed to provide free electricity for lower income households.”
The ESP was also designed to help those living on a monthly income of less than R5 308.20 to gain access to water, electricity, refuse removal and property rates rebates.
But you can still save the monthly service and network fees, which on average totals R500, by installing a prepaid electricity meter. You can apply for it and be quoted on a single or three-phase; or enquire whether you currently have a smart meter or an old postpaid meter.
If you have a single phase or three-phase with a smart meter, the installation will cost you R1 368. If you have three-phase and an old meter, you can expect to pay around R5 000. If you have a single phase and an old meter, payment is around R2 700. City Power does not permit residents to install prepaid meters themselves. The entity is responsible for this.
Details: City Power prepaid queries call 011 490 7484; estimations@citypower.co.za
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