Buffalo City throws lifeline to cash-strapped pensioners

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.

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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.

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