The municipal government of the City of  Cape Town and state electricity utility Eskom have signed a Funding Agreement  for the provision of a monthly supply of free basic electricity to all domestic consumers in the Eskom areas of supply within the City of Cape Town. The monthly allocation of free electricity will also be raised to 50 kilowatt-hours from 30 kilowatt-hours, effective from January 2004.
 
Announcing the agreement, Councillor Saleem Mowzer, Mayoral Committee Member for Trading Services for the City of Cape Town, said that it covers areas that previously did not receive the free basic allocation enjoyed by other parts of the city.
 
"The communities serviced by Eskom include some of the poorest communities in the city, who previously they did not receive this free basic allocation," explained Mowzer. "This 50 kilowatts of free basic electricity equates to nearly 20 rand, which may not seem much, but it is a massive saving for those who live at or below the poverty line. For theses communities, this is the  promise of a better life. Extending free basic electricity to these communities is a victory against poverty in our city."

He said Eskom will roll out the free basic electricity in phases as vending and billing systems are adjusted to facilitate the allocation of the free 50 kilowatt-hours each month.  By the end of January, one-third of the areas within Eskom's area of supply will be capable of claiming their portion of free basic electricity. This includes all domestic electricity consumers in  Khayelitsha.
 
The rest of Eskom's domestic electricity consumers will all have received their first 50kWh of free basic electricity by the end of February 2004.
 
"This is a groundbreaking achievement through which we are alleviating poverty and creating a better life for those who need it most," Mowzer elaborated. "Over the past few years we have experienced many fires in Khayelitsha due to the community's reliance on paraffin, drum fires and other forms of heating and lighting. In many cases lives and valuable possessions  have been lost.
 
"Now we are creating a better life for this and many other communities. They can now look forward to lighting and warmth in their homes, especially during the cold winter months. Children can now study with the comfort of a burning light, rather than by candlelight which is often dangerous. This demonstrates the human face of providing more electricity to those who need it most."
 
He concluded by saying the agreement reached between the City and Eskom is in line with the South African government's commitment to provide free basic services for poverty relief and alleviation. The City sees itself contributing to this through the agreement reached with Eskom, the implementation of its Indigent Policy and the City's affordable electricity tariffs that are competitive with that of other South African metros.
     
I-Net Bridge 30 December 2003