NELSON MANDELA BAY, Eastern Cape — A controversial National Treasury directive has forced Nelson Mandela Bay to slash free electricity allocations under its Assistance to the Poor (ATTP) programme, leaving indigent households with 25 fewer kilowatts each month and exposing them to what opposition politicians are calling unlawful tariff increases of up to 61 percent. The policy shift, which reduces the monthly free power grant from 75 to 50 units, has intensified pressure on families already allocating the bulk of their income to food, school fees, and transport.
The ATTP framework was established to shield the municipality’s most financially vulnerable residents from the full cost of essential services. Under the programme, qualifying indigent households receive subsidised relief across four core areas: electricity supply, water provision, sanitation, and refuse removal. While each of these service categories has been scaled back, the electricity reduction has emerged as the most disruptive change for beneficiaries.
A One-Third Cut With Real-World Consequences
The adjustment represents a full one-third decrease in the free power allowance. For households where every kilowatt determines whether children can study after dark or whether a meal can be prepared, the reduction translates into immediate, tangible hardship.
A resident who has become a vocal voice for affected families in her community, is currently the primary caregiver to eight grandchildren and great-grandchildren following the deaths of most of her daughters. Eleven people share her home, yet only two hold employment. When finances permit, she purchases roughly R100 worth of prepaid electricity to supplement the municipal grant, but the reduced allocation means that top-up must now stretch considerably further than before.
Another resident speaking on behalf of struggling households in the area, described how the loss of his formal job years ago left his family dependent on his wife’s income. He explained that casual and piece jobs have grown increasingly scarce, making it nearly impossible to absorb additional utility costs without sacrificing other essentials.
Opposition Cites “Unlawful” Pricing Structure
The Democratic Alliance has mounted sharp criticism of the municipality’s approach, arguing that indigent families are being doubly penalised: first through the reduced subsidy, and second through the restructured pricing that applies once the 50-unit threshold is crossed.
Central to the DA’s objection is the elimination of the step tariff system. Previously, households that exceeded their free allocation faced a graduated pricing structure. That safety net has now been removed. Any family consuming more than the new 50-unit cap must pay the full tariff rate for every additional kilowatt — a rate the opposition says has surged by 61 percent.
DA spokespersons described the hike as disproportionate and legally questionable, stating that it is “totally unlawful to have unreasonable tariff increases like that” imposed on residents who depend on social assistance to survive.
Council Cites Treasury Mandate, Admits Initial Resistance
Municipal officials, however, maintain that the decision was not made locally. A council spokesperson confirmed that the reduction stemmed directly from a formal written instruction issued by the National Treasury. The directive was officially tabled and read aloud during a sitting of the municipality’s budget and treasury standing committee.
The councilor acknowledged that local leadership initially pushed back against the instruction. Describing the council as “a government that feels for our people,” the spokesperson stressed that no elected official wanted to reduce the subsidised electricity available to struggling residents. The municipality resisted the directive at first, but ultimately conceded that its opposition could not be sustained indefinitely.
The core constraint, the councilor explained, is financial dependency. Because Nelson Mandela Bay receives critical funding transfers from the National Treasury, the local government has limited room to defy national fiscal policy. When the Treasury adopts a firm position, the councilor noted, municipalities have little practical choice but to comply.
The Bottom Line for Vulnerable Families
For the estimated thousands of indigent households across Nelson Mandela Bay, the political and administrative explanations offer no relief at the prepaid meter. With the majority of monthly income already committed to groceries, education costs, and commuting, the loss of 25 free electricity units forces impossible trade-offs.
As residents navigate the new reality, the consensus among affected communities remains stark and simple: when budgets are this tight, every single unit counts.
