GOOD Statement by Brett Herron,
GOOD Mayoral Candidate: City of Cape Town
26 October 2021
Loadshedding – immensely damaging as it is to productivity, business and our feeling of well-being – is not our only electricity crisis. When power is available, it is unaffordable to many households.
Cape Town is probably the only South African city with the means to tackle both ends of the crisis. It has nearly R20 Billion in reserves in the bank and operates a pre-paid electricity system that guarantees its monthly income and is the envy of many towns and cities.
The only factors holding us back are a dearth of progressive thinking, imagination and political will.
The City of Cape Town must invest in the supply of clean and affordable power that will reduce dependency on Eskom and contribute to decelerating climate change. At the same time, it must prioritise increasing access to electricity by those who can presently least afford it.
It is a two-pronged investment process that the City began under the leadership of Patricia de Lille, but which quickly began unraveling after her resignation three years ago.
The first investment involves building on the positive outcome of the case de Lille took to court to force government to allow local governments to buy electricity from independent producers.
Rather than wasting money on an election campaign claiming credit for the role the Steenbras Dam pump storage scheme built in the 1970s reduces the impact of loadshedding, the City would do well to take the first step to actually procure independent power.
Buying power from independent producers doesn’t necessarily mean investing in big business. A GOOD-led City government has plans to set up community energy cooperatives to produce their own power.
Cape Town must reinstate the prioritization of installing solar kits in informal settlements, as part of the delivery of new public housing, and across the City’s considerable portfolio of rental stock.
The City must also reconsider its approach to assisting homeowners to finance their own solar systems using the PACE model (Property Assessed Clean Energy), where the debt is linked to the property and repaid with rates over 20 years.
The second broad category of investment required by the City is investment in making power more affordable to more consumers. This entails reconfiguring tariffs, reducing profits, and increasing the availability of free power to qualifying families and individuals.
The City has already paid for its electricity metering infrastructure, and should therefore drop this fixed surcharge. It should stop the illegal practice of debt-collecting via the pre-paid electricity system, which makes buying any electricity virtually unaffordable for already indebted families.
The free basic electricity grant is insufficient to keep the lights on in poorer households. There is a “lifeline tariff” enabling consumers to buy a certain amount of electricity at the lowest base rate. This amount must be increased from the present 350kwh to at least 600.
Finally, Cape Town must invest in relationships. When she was mayor, de Lille leveraged her international contact base to secure funds to insulate old council properties. Insulating properties reduces consumers’ heating bills.
If Cape Town invests wisely, it really can remove Eskom from the equation while contributing to a reduction in inequality that presently threatens the City’s sustainability.
For media inquiries, please contact:
Ms Fiona Furey, Communications Director: City of Cape Town Mayoral Candidate
Cell: 0722455803
Email: fionaf@forgood.org.za
Mr Wilfred Solomons, Campaign Manager: City of Cape Town Mayoral Candidate
Cell: 0847117709
Email: wilfreds@forgood.org.za