Thousands of pensioners in Buffalo City will receive relief from the metro’s controversial monthly basic electricity charge after it officially rolled out a new tariff that exempts qualifying senior citizens from paying the fixed fee.
The National Energy Regulator of South Africa (Nersa) has approved BCM’s Pensioners Electricity Relief Scheme, which came into effect on July 1
The measure insulates qualifying ratepayers aged 65 and older from the monthly basic electricity charge of R461 — saving them about R5,532 a year.
To qualify, account holders must also own and live on the property, have the electricity account registered in their name and earn a combined household income not exceeding double the state pension.
The relief follows a long-running battle over the metro’s basic electricity charge, which was approved by the regulator and sparked public outrage and a legal challenge when it was introduced in 2024.
The same year, Buffalo City ratepayers marched against the municipality after it introduced a 12% electricity tariff increase together with a monthly basic charge of R376 for prepaid customers and R660 for postpaid users.
The tariff structure was challenged in the Bhisho High Court by several ratepayers’ associations and nonprofit organisation Friends of Schalk.
The city lost the battle in 2025, when acting judge Ntsikelelo Mtshabe declared the council’s decision to introduce the basic charge unconstitutional due to the city’s failure to consult residents.
In this year’s budget, which took effect on July 1, the tariff was reintroduced after the city conducted a public participation process.
The effect of the relief measure should reflect on the bills of qualifying pensioners with postpaid electricity meters from the end of July.
Prepaid users, according to the city, have been benefiting from the reprieve since the beginning of the month.
BCM spokesperson Luzuko Buku said the pensioners’ relief scheme formed part of the metro’s social relief measures aimed at easing the financial burden on elderly residents.
“This relief scheme introduces significant savings designed to directly assist qualifying elderly residents who are over 65 years of age.
“Senior citizens on this tariff are completely exempt from paying the basic charge, eliminating a major fixed overhead cost,” Buku said.
He said the municipality had automatically migrated most qualifying residents to the new tariff before its rollout.
“To ensure a seamless transition into this Pensioners Scheme, BCM executed an automated system conversion prior to rollout, migrating most eligible domestic account holders to the new structure.
“Prepaid meter users have been enjoying these discount rates since July 1, while credit meter adjustments are being reflected in July billing statements,” he said.
Pensioners welcomed the decision, though political parties differed on whether the relief scheme went far enough.
Beacon Bay Ratepayers’ Association chair Scott Roebert said: “This is definitely a step in the right direction and though we realise BCM needs to increase its income, we still urge them to look at ways to limit losses instead of taking the easy route and lumping increases onto ratepayers.
“Theft of infrastructure is on the rise in Beacon Bay, and this also adds frustration [for] the ratepayers as many of us are sitting without power for days and are still paying these basic charges.
“We call on BCM management to reduce the basic charges for all ratepayers and focus on reducing illegal connections as a better way of increasing revenue. We deserve better.”
Gonubie resident Desirée Abrey, 71, said: “It was really a pleasant surprise when I received this month’s BCM account and saw that the amount owing had decreased by a few hundred rand.
“That was because the prepaid electricity surcharge had been removed,” she said.
DA Buffalo City councillor Geoff Walton said the tariff would provide much-needed financial relief.
“This is a new tariff approved by council to bring relief to those on pension.
“As the DA, we welcome this as this will be a much-needed reprieve to pensioners in BCM who have difficulty affording this payment.
“This was introduced as part of the budget and was approved by council when adopting the budget,” he said.
However, the EFF’s leader in the council, Mziyanda Hlekiso, described the measure as a drop in the ocean.
“There is no change at all. As long as they are still paying there is no change because they are still affected by a billing system that is inaccurate.
“They should in fact not be paying at all, as they are no longer working and they should be falling under the indigent category.
“It is like a drop in the ocean. Nothing much has changed. They should not be paying at all.”
Residents who qualify but have not been transferred to the new tariff, or those who recently turned 65, have been urged to register at any Buffalo City customer service centre by presenting their identity document, a recent municipal account and their electricity meter number.
Beacon Bay resident Johan Koekemoer said he had applied to benefit from the relief scheme but had received no joy.
“Late in June, this matter was communicated to consumers by email from BCMM ... we were told to submit copies of our latest billing account as well as ID document to [BCM] offices.
“This I did on June 23 but was told by the staff that they knew nothing about this amendment.
“According to the letter received ... these amendments were included in the official annual tariff book for 2026/2027, which was still unknown to the staff a week before the start of the new financial year.”
He said though he did all that was required, he was surprised when he received his July statement and discovered that he was “still being charged with the basic charge”.
Daily Dispatch
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