The National Association of Social Housing (Nasho) has urged government to consider alternatives for the social housing sector as electricity tariffs are set to increase further, arguing that tenants and social housing developers will not be able to absorb the higher costs.

Power utility Eskom has indicated that it will apply for a near 40% increase in electricity tariffs and municipal electricity tariffs could increase costs for consumers further.

"Currently, social housing tenants are not cushioned from the high cost of municipal services, including the exorbitant price of electricity, in any way," says Nasho GM Karabelo Pooe.

"This is despite the fact that around 35% to 40% of social housing tenants earn below R6 700 a month and, therefore, should qualify as indigent.

“However, because they rent their homes through an 'institutional landlord', they are not able to apply for indigent benefits. This means that although they are in effect indigent, they are expected to fund their living costs without the safety net of indigent subsidies," he adds.

This means that in areas such as the City of Johannesburg, social housing tenants, or affordable housing tenants, that meet the income criteria that qualify them as indigent, struggle to apply to receive the benefits thereof because of “bureaucratic red tape and onerous city processes,” Nasho explains.

The association says this is not unique to the City of Johannesburg, noting that indigent social housing tenants in most municipalities with social housing projects across South Africa are unable to access free or subsidised basic services.

Whether someone owns their property, rents from a private landlord or lives in social housing, if they qualify as indigent, they should receive the benefits that go along with it, the association argues.

Nasho says its primary objective is to assist in building a strong and sustainable social housing sector in South Africa.

The association explains that it is concerned that a large number of social housing tenants who should be eligible for indigent status will be unable to afford the looming electricity price increase without indigent benefits, putting them at risk of financial hardship.

Thus, Nasho urges local municipalities to treat social housing tenants that qualify as indigent the same as any other indigent person.

It also calls on national and local government to examine the real impact that the electricity price hike is likely to have on social housing tenants, as well as on social housing landlords.