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8th March Launch of Free Basic Electricity Research

Press Release: Launch of Free Basic Electricity Research and Protest Action
Earthlife Africa Jhb
4th of March 2010

There is a direct link between the provision of electricity and the upliftment of people’s lives. This is especially true in terms of the lives of women. On 8th March 2010, International Women’s Day, Earthlife Africa Johannesburg and the Women’s Climate Change Forum will be holding a demonstration outside Eskom Regional office in Braamfontein from 9h00 – 12h30 in response to the electricity tariff hikes that are to be implemented in April 2010.

In addition, Earthlife Africa Johannesburg will also be launching its report ‘Free Basic Electricity –A better life for all’ at:

Venue: Braamfontein Recreational Centre, Johannesburg
Cnr Harrison and Smit streets, Braamfontein.
Time:  14h00 – 15h30
Date:  8th of March 2010

Members of the press are welcome to attend

The Report assesses the 50kWh of free basic electricity suggested by Government for poor households. The rationale of the Free Basic Electricity (FBE) Policy was to provide “electricity to all” through the provision of a ‘limited’ amount of free electricity to poor households. Subsequently, government decided on an amount of 50kWh per household per month.

The Report finds that not only is the amount not sufficient for basic needs but there is also a problem in the way it is being rolled-out. For example, in some areas, such as the Ekurhuleni Metropolitan Municipality, 100kWh of free electricity (instead of the 50kWh proposed in the policy) is being provided to all households. Other areas require households to register for the free electricity allocation and therefore limited to a few households on the indigent list. Furthermore, Eskom’s current CAPEX programme, rising tariff costs, and spiralling fossil fuel costs are causes for concern, as the rising costs of energy will leave poor households in a deepening cycle of poverty and increasing the danger of economic disconnections.

Given the findings of the Report, Earthlife Africa Jhb thus proposes that there should be an increase in the amount of FBE to 200kWh per month per household. In addition, using Eskom’s 2008/2009 statistics of the amount of electricity used and the cost thereof, the funding model proposed suggests that in order to fund the increased 200kWh there should be:

* A rising step block tariff
* Environmental levy ring-fenced for FBE
* A levy placed on high-end users including industrial users

Without any of these in place, the increased tariffs over the next 3 years means that the poor are going to be most affected and thus deepen the cycle of poverty. As a society, we have to believe that people come before profits.

For more information contact:

Ferrial Adam
Researcher
Earthlife Africa Jhb
Cell: 074 181 3197
Tel: 011 339 3662
Email: feradam@gmail.com
www.earthlife.org.za

Makoma Lekalakala
Programme Officer
Earthlife Africa Jhb
Cell: 082 682 9177
Tel: 011 339 3662
Email: makoma@earthlife.org.za
www.earthlife.org.za