Indigent Policy Nelson Mandela Metro

Present scheme Introduced July 1997 Provided – two schemes – household income 0 to R700 per month – 100% – R700 to R800 – 50% Services credited – rates, refuse / environmental, water up to 12kl and sewerage 2001/2002 financial year –Households assisted –Total credits R Approximate average account credit R70 per month

New scheme Target July 2003 Qualification criteria reviewed Benefits extended to include electricity

Qualification criteria- requirements Must occupy Must not own other property Maximum household income of R1500 pm Maximum municipal valuation Prepaid meter with consumption not exceeding 150Kwh monthly average

Benefits Rates to the maximum value - 100% Refuse and environmental charge - 100% Water 6 kilolitres - 100% Sewerage – to the maximum of the minimum - 100% Free prepaid token for 50Kwh

Other Application Subject to on-site audit Annual review by applicant Annual Policy review linked to Equitable share and sustainability

Future refinements Remove application process Self assessment and control Possibility of alternative targeting system - consumption levels, valuation levels or combinations

Challenges Control water consumption above the benefit vs cost of prepaid water systems If benefits are exceeded who pays excess or cost of alternative control system How will this be enforced vs cost –Prepaid electricity –No further benefit until paid Determining a future self assessment / control system and the consumption levels