The Western Cape government has put forward an initiative calling for a more substantial increase in the allowable norms for free water and electricity supply for households meeting need criteria, ahead of the publication of the National Treasury's Medium-Term Budget Policy.
On October 21, the province proposed raising the total monthly norm for free water supply for needy households from six to ten point five kilolitres, and also moving to an energy consumption threshold of 150 kWh per month, which is significantly higher than the standard 50 kWh.
These proposals are not yet approved policy. They emerged against a backdrop of broader demands for municipal support. For instance, GOOD party leader Brett Herron argued that Cape Town could use its stated surplus of 7 billion rand to reduce the financial burden on residents.
Premier Alan Windey noted that rising costs particularly affect vulnerable populations. Finance Minister Deidre Bartman stated that people continue to feel the impact of increased prices for fuel, food, and transport, according to the province's statement.
The government also reported that a study conducted with the University of Stellenbosch showed that the current benefits package no longer provides a 'decent standard of living.'
Municipalities set their own rules for needy citizens. In Cape Town, for example, homeowners whose monthly income is R7,500 or less may qualify for benefits by meeting conditions, including owning one property and residing there permanently, according to information from the City of Cape Town.
The latest update from Eskom indicates that 550,126 customers are registered for free basic electricity, which accounts for about 26% of the estimated 2.1 million eligible customers.
Households are advised to check local regulations and register. More extensive changes will require further decisions and implementation details.
The increases proposed by the Western Cape were not specifically announced or approved in the Medium-Term Budget Policy update on Wednesday. Nevertheless, Godongwana announced additional funding for free municipal services. An extra R21.8 billion will be allocated for local government's fair share in the medium term to cover higher overall costs associated with free basic water, sanitation, electricity, and waste removal. These services are currently provided to over 11 million households.
Godongwana clarified that this additional funding is intended to help municipalities cope with financial difficulties, but stressed that the problem can no longer solely be about resources; municipalities must improve financial management and service delivery.
He did not announce changes to the current national free service thresholds nor did he comment specifically on the Western Cape's proposal. Consequently, the provincial increases proposed remain only proposals at this time and require further decisions and clarification on implementation.

