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The Department of Minerals and Energy ‘Free Basic Energy Policy Guidelines’ document states that “Municipalities are Service Authorities and are constitutionally expected to provide or procure the provision of basic services to inhabitants in their jurisdictions… “
The document makes the concession that “Basic Alternative Energy Service is not naturally in the domain of municipalities. In this regard, municipalities must provide for the procurement of pre-determined energy services through the utilisation of external Service Providers.”
Red Cap seeks to assist municipalities in providing basic energy to those constituents who need it the most. The provision of energy is linked to poverty eradication and the upliftment of the poor. At Red Cap we are committed to assisting in the provision of energy to the underprivileged – our vision is “Empowering people through Energy”.
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A Municipality has the executive authority to administer local government matters. Following from this is access to Government’s Equitable Share allocation which “provides for the provision of access to other forms of energy.” (Source: DME ‘Free Basic Energy Policy Guidelines’ document).
The DME states that:
“Municipalities will therefore be required to:
- Provide access to basic municipal services including energy to indigent households
- Fund the provision of FBAE (Free Basic Alternative Energy) to indigent households as determined by their indigent register or policy
- Fund a large variety of other alternative energy sources to indigent households… “
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The Department of Provincial and Local Government (dplg) lists many socio-economic benefits obtainable from introducing an Alternative Energy Source into indigent communities.
A variety of job development opportunities for women and community empowerment, job creation and poverty alleviation, are initiated through introducing a new industry that requires distribution and retail outlets.
Compared to existing fuels distributed to poor communities, where the price is unregulated due to many commercial service providers, introducing Red Cap as a FBAE offers an opportunity to create a linear distribution network, with a regulated price, through a single provider. This guarantees affordable pricing both to the municipalities and to the poor themselves.
Rural areas will need to establish supply chains for the Alternative Energy Source and its appliances, which can create jobs in rural areas. The DME comments that “If well managed… there are opportunities for the establishment of Integrated Energy Centres, SMMEs and BEEs in facilitating access to Alternative Energy Sources (which assists with) the poverty reduction goal of… Government.”
In addition to providing empowerment and development opportunities, these poor communities will be uplifted through being able to cook, heat and have light from Red Cap, a safe and healthy energy source.
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