Protest over meter investigation cases, amid Eskom-driven tariff hike, cost of living crisis
22 August 2024
The City notes the protest in Lavender Hill related to disputed electricity meter tampering incidents. In recent years, the City has seen a spike in meter tampering cases largely linked to soaring energy costs that are driving South Africa’s cost of living crisis, impacting all residents and especially vulnerable households. The City has among the highest levels of social support available among the metros to qualifying residents and often absorbs part of Eskom’s tariff hikes. It also has a large distribution of Free Basic Electricity grants and extensive help through the Lifeline tariff.
‘In recent years, the City has observed a notable increase in prepaid meter tampering cases. It is our view that these incidents are linked to the growing cost of living crisis driven by unaffordable and unreasonable electricity tariff hikes proposed by Eskom and approved by the National Energy Regulator (Nersa) over the years. Just yesterday, Executive Mayor, Geordin Hill-Lewis, wrote to Nersa, asking it to reject Eskom’s unconscionable 44% proposed electricity hike.
‘There are currently more than 12 000 meters that have been established as having been tampered with, setting up electricity theft. It is simply illegal and not sustainable for the City as income is essential to enable the City to provide these electricity services. In addition, we have extensive subsidies already available to qualifying residents to help struggling households. Approximately 30% of our customers receive Free Basic Electricity.
‘Apart from offering subsidised electricity allocations to some of the largest numbers of qualifying residents in the country, we’ve also implemented a significant price reduction for larger families or vulnerable households who maintain a monthly average of 450 units on the highly subsidised Lifeline tariff. In the last financial year, the City raised the number of units that could be bought by Lifeline customers on the cheaper tariff from 350 to up to 600 units a month. Importantly, assistance is on offer, but the City must be mindful that help can only be provided in a sustainable manner, within the City’s available financial resources,’ said the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Meter tampering occurs when a person interferes with the City’s electricity meter equipment to pay less or not pay for electricity at all. This is despite the extensive subsidies and help available to qualifying residents.
All electricity meters belong to the City of Cape Town and thus the law requires that all households with City meters must give the City and its contractors reasonable access to check on suspected faulty meters or check irregular power usage. Residents may not interfere with the City’s employees and contractors performing their official duties. It is illegal.
Thorough tampering investigations take place on an ongoing basis. When evidence of tampering is found, the City conducts a full investigation, which includes examining the resident’s electricity usage and purchase history, in detail, over a number of years. If tampering is found, the resident also has a right to appeal.
The City’s Electricity By-law (Section 26 – Tampering with service connection or supply mains) states that no person may in any manner or for any reason whatsoever tamper with, interfere with, vandalise or deface any meter or metering equipment or service connection, or protective device or supply mains or any other equipment of the service provider.
Busting fake news – why electricity costs go up:
- When there is tampering, no payment is made for the electricity used. Once the illegal tampering at the identified household is rectified it would be normal for the consumer to see an increase in their electricity costs, due to paying for the actual electricity usage in their household. Debt recovery action for the tampering will also be instituted.
- When a faulty prepaid electricity meter is found and is replaced with a new prepaid meter it is normal for the consumer to see an increase in their electricity costs, due to the consumer now paying for the actual electricity usage in their household.
- Eskom has increased the price of electricity. The City must increase as well to cover costs. The cost go up in the new financial year that started from 1 July.
- In winter, typically households use more electricity, this drives up costs.
City’s compulsory meter replacement programme
- The City’s beneficial Meter Replacement Programme DOES NOT increase costs. In fact, replacing the old meters with new prepaid meters could help households to monitor and bring down costs.
- The unit price of electricity between the old credit meters and the new prepaid meters is EXACTLY THE SAME.
- As part of the Meter replacement project, the conversion to the new prepaid meter is entirely free of charge.
- Importantly, the customer will remain on the same tariff after the conversion. If the customer qualifies for the Lifeline tariff that includes free basic electricity, they will be converted to that tariff.
- It is not normal for any new prepaid meter to require a reset token when the meter goes to zero units. It is being claimed that if new meters run down to 0, a City team must come and fix it as no units can be bought then. This is false. It typically does not require a team to reset the meter if a customer uses up all the units. If there is a blank screen, it means there is a fault at the supply point. These cases are the exception rather than the norm.
Progressive Lifeline tariff benefits in a nutshell:
- Big price reduction of 44% less, averaging use of 450 units per month - that’s R1,89 less per unit.
- No other city has reduced the price of electricity for indigent households over the last two years.
- Last year the City raised the number of units that could be bought by Lifeline customers on the cheaper tariff from 350 to 600 units a month. This financial year, the blocks were collapsed into one block on the lower tariff.
- Remember, customers must stay on 450 units per month over 12 months.
- Lifeline customers using up to 600 units in a month, will pay R113,94 less compared to two years ago.
To see if you qualify for social support or payment arrangements to settle debt, please visit your nearest customer offices.
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Published by:
City of Cape Town, Media Office