Pensioners to pay less

N$1 million subsidized

10 December 2018 | Local News

A council resolution that was passed in 1993 to subsidize electricity costs of pensioners living in old age homes, is now being amended to include ­pensioners also living in their own homes.

Due to the continued public outcry and bad publicity towards the City of Windhoek from pensioners, old age homes and individual pensioners in private homes, council said there is a need to fast-track this implementation.

“To ensure sustainability in this regard, the conversion is deemed critical in order to ensure that pensioner account holders do not fall back into debt. Thus, a discounted prepaid tariff implementation is critical,” according to municipal documents.

The tariff will be implemented to both defaulting pensioners whose meters are converted to prepaid meters as well as non-defaulting pensioners who have prepaid meters installed at their houses.

As the electricity is supplied at a reduced cost, it will have a financial implication but, according to the City, this is usually catered for via cross-subsidies within the department of electricity tariff application to the electricity control board.

The department anticipates that 1 000 pensioners will benefit from this tariff within the remaining seven months of the 2018/2019 financial year. The financial implication is based on the recommended 250kWh per month. With the subsidy op N$0.61 per kWh, the subsidized amount over seven months totals N$1 067 500. Pensioners will pay N$1.44 per kWh instead of N$2.05.

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