Johannesburg gas supplier Egoli Gas has increased conversion rebates applicable to clients in the Kensington and surrounding areas affected by its decision to permanently terminate its services to the region.
These include a rebate of R8 000, increased from R3 000, to customers, following consideration of the average conversion cost.
Egoli Gas says it has purchased liquid petroleum gas (LPG) cylinders at “substantially reduced” rates from suppliers, in which each termination-affected household will be given a cylinder for free.
Moreover, Egoli Gas says it has engaged LPG practitioners to provide preferential rates for conversion, to affected community members. Egoli Gas highlights that the average conversion cost amounts to R11 000.
Egoli Gas says it will also cover the conversion costs for non-governmental and non-profit organisations in the area, while customers that have accounts in arrears up until December 1, 2023 will have their debt written off by Egoli Gas.
“We have setup a contact point at a local business in Kensington, where community members can be easily assisted with completing and submitting the necessary documentation required to process their rebate,” Egoli Gas states.
The gas company reports that it has been “proactive in taking steps” to reduce the impact of its decision to permanently terminate its services to Kensington and surrounding areas.
In a statement, Egoli Gas says it recognises the challenges this has created for residents; however, “there are economic and environmental factors beyond our control”.
“We unfortunately find ourselves in times of great uncertainty about the supply of gas and significant price increases. Adding to this developing economic burden, our customer base in the region has declined from approximately 5 000 in 2005, to just over 500 at the start of this year,” the statement reads.
Further, another factor Egoli Gas is taking into account through its termination of the services to the affected regions is what it says is soil in the greater eastern region being highly corrosive, which has affected the integrity of its low-pressure steel pipelines, over the years.
Egoli Gas says these pipes have reached the end of their lifespan, with no option to continue maintenance and their replacement being the only alternative.
“As a privately owned entity, [of] which these pipes are the property . . . it is our responsibility to ensure that we continue to keep them in a condition that does not pose a risk to the safety of our customers.”
As a result, Egoli Gas says it would be negligent for it to continue the use of these pipes beyond their lifespan. “The replacement thereof, in a period of economic downturn and a declining customer base, is simply not feasible for the company.”
Also, Egoli Gas clarifies that, through its exiting of Kensington, it currently has no plans to extend its pipeline network across its areas of operation.
As a means to assist gas consumers in the affected region, Egoli Gas says it is making available “workable and cost-effective provisions” to customers in the area, to reduce the adverse economic effects of the imminent termination of supply.