Threats against City electricity meter staff and contractors appear politically driven

11 September 2024

STATEMENT BY THE CITY'S MAYORAL COMMITTEE MEMBER FOR ENERGY, ALDERMAN XANTHEA LIMBERG 

There appears to be political instigation and deliberate misinformation being spread by a small group of individuals on electricity meter-related cases in some communities such as Lavender Hill and Hanover Park. The core issue revolves around investigations into alleged electricity meter tampering. The majority of residents in these areas are paying for their City-supplied electricity services with just 75 tampered meters found and 175 meters bypassed out of a total of 939 meters checked for bypass and defects in Lavender Hill alone.

The City treats the emerging threats against City staff and contractors performing their official duties in these areas as unacceptable and the City will open criminal cases against groupings or individual instigators. If the City has to suspend all electricity services to areas where threats are being made against staff and contractors, it is to the detriment of the majority of law abiding residents in these areas.

We've had numerous engagements about electricity costs and alleged illegal meter tampering with the 7945 Community Action Group, which appears to have political affiliations, in the Lavender Hill area in particular. We've also engaged them in writing and responded to their demands earlier today.

What has sparked the mobilisation has been the City's standard metro-wide meter functionality investigations, which found that only 26,6% of the checked 939 electricity meters in Lavender Hill have either been tampered with or bypassed. By far most of our customers are not tampering or bypassing in this area. It is best practice, when investigating meters for bypass, tampering, defects or aging infrastructure, to replace the meters with new meters. The false news being spread is that the new meters cause electricity costs to go up. This is false and unfounded. These meters merely measure electricity usage and do not consume any of the customer's electricity. The cost between the older and new meters are exactly the same. But where tampered or defective meters have been replaced with new meters, customers will notice a change in their purchasing patterns as they will be making accurate payments toward their electricity consumption. Again, we have extensive help available to those who qualify for assistance in terms of the Free Basic Electricity and the highly subsidised Lifeline tariff.

If the City did not carry out the meter functionality investigations and rectify the installations where tampering is found it could result in even higher electricity tariff increases.

It also appears that Eskom's continued unaffordable electricity price hikes are one of the main reasons for an apparent spike in tampering cases in recent years. Some 75% of the City's income received from electricity tariffs goes directly to Eskom. So any big Eskom increase has a profound impact on the City.

The City will not stop its standard revenue protection activities as any income lost is essential to help pay for the cost of providing electricity. Without it, and if people continue to consume electricity without paying for it, there will eventually not be enough income to cover the cost of providing services.

Significantly, income received from electricity sales already does not sufficiently cover the cost of rendering the service as the City absorbs some of the costs to shield customers from Eskom-driven increases. In an event a customer wishes to dispute a tampering finding by the City, a 21-day appeal period is granted prior to debt being loaded on the customer's account.

We have extensive subsidies available to qualifying residents to help struggling households. Approximately 30% of our customers receive Free Basic Electricity. I implore all residents who need help to visit their municipal customer interaction centre to see what help is on offer.

Where debt has been accrued either from non-payment of City supply services or through contravention, the City reserves the right to recover that debt by enforcing its credit control and debt collection policy. The issue of the high cost of electricity is raised repeatedly. The City has encouraged the action group to support the City in its fight against Eskom's proposed 44% increase.

The City has acted in good faith in engaging with the action group and has offered feasible assistance where possible and within reason. The City has an open door policy and we will always engage all communities in good faith but we will not tolerate deliberate misinformation intended to undermine the rule of the law.

What is meter tampering?

It 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. 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.
• Residents may not interfere with the City's employees and contractors performing their official duties. They may not prevent the City from entering areas where it has the legal right to perform its work and service delivery. It is illegal to threaten or prevent City officials and contractors from entering service areas and it is to the detriment of the broader communities.
• 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.
  
   
  
  Should a customer want to dispute or appeal the findings:

• Contact the City's Call Centre: 0860 103 089.
• Provide the reference number that they would have received as part of the notice of tampering issued to them. 
• Provide their contact information.
• The matter will then be reviewed and the customer contacted.
• If it is not resolved, the customer may make representation to the Electricity Generation and Distribution Department and even go so far as to approach the Office of the City Ombudsman.
• If the customer fails to dispute or make representation within the allotted time (21 days), the fees are loaded on the prepaid meter for recovery. The City never turns a customer away simply because the 21 days has expired but will always address a query.
  
   
  Why electricity costs go up in general, and in relation to tampering:
  
   When there is tampering, no payment is made for the electricity used. The meter is bypassed and evidence of the bypassing is typically very clear on investigation. Photographic evidence is taken for further investigation.

1. If the City did not carry out the meter functionality investigations and rectify the installations where tampering is found, it could result in even higher tariff increases.
2. 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.
3. Debt recovery action for the tampering will also be instituted, on average 50% of the purchase, but indigent customers may have a further reduced recovery.
4. Eskom has increased the price of electricity. The City must increase as well to cover costs as some 75% of the City's income received from electricity tariffs goes directly to Eskom. So any big Eskom increase has a profound impact on the City. Electricity income is also used for shared services. The cost increased in the new financial year that started from 1 July.
5. In winter and in colder temperatures, typically households use more electricity, this drives up costs.
   
    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.

End

Published by:
City of Cape Town, Media Office