Eskom tariff hike: Here's how the City is protecting vulnerable residents

As Eskom’s tariff hike enters the municipal billing cycle from July, the City of Cape Town says it is offering unprecedented social relief measures for households in 2023/24.

Lifeline Tariff customers will pay significantly less per unit in the 350 – 600 usage band this winter.

The City is also protecting all households from Eskom’s 18,5% tariff hike as much as possible, reducing this to 17,6% while still funding a reliable electricity service and plans to end load-shedding.

Lifeline Tariff relief

Customers using 350 – 600 units will now pay only R1,84 in this usage band, compared to R3,15 per unit in 2022/23. An average usage of 450 units over a 12-month period still applies to remain in this tariff category.

The City has also upped the property value criteria to qualify for the Lifeline tariff, from R400 000 to R500 000. Residents with a property value higher than R500 000 may also still qualify for the Lifeline tariff if their household monthly income is below R7 500.

Pensioners and grant beneficiaries

The City is further expanding the qualifying threshold for pensioners and social grant recipients to benefit from the lifeline tariff and rates rebates, with the qualifying limit now R22 000 monthly income, up from R17 500.

Social package increased

The City has increased the total social support package by more than half a billion rand for 2023/24, to R4,3 billion in total for rates and services relief.

The metro continues to offer an allocation of free water at 15kl, free sanitation at 10,5kl, and up to 60 free electricity units.

Everyone under the R7 500 monthly household income threshold will get a 100% rebate for property rates and refuse removal, benefitting 192 500 households across Cape Town.

Those in residential living units with a property value of R450 000 will also get this benefit.

All residential properties valued at R5 million and under are also receiving a R450 000 reduction in the property valuation for rates calculation purposes.
This translates into R450 000 of a residential property valuation not being rated.
Customers who have moved from the Lifeline tariff to the Domestic tariff because their properties are now valued at more than R500 000 after the General Valuation (2022) may, however, qualify for rates rebates, indigent or pensioner support. If they do, they could receive their supply at the Lifeline tariff on application.

It’s worth noting that currently, around 70% of the City’s income from the electricity tariff goes towards buying bulk electricity purchases from Eskom, with the remaining 30% going towards delivering a reliable electricity service and to fund plans to end load-shedding.

With winter in full swing there are ways to reduce your household bills:

Reduce your geyser’s temperature to 60 degrees Celsius to reduce costs.

Buying electricity in bulk is not cheaper. Rather buy small amounts as required to stay on the cheaper tariff band.

To apply for financial relief and rebates visit the City’s website.