Accommodation[1]20

14. ANNEXURES

14.4 ANNEXURE 4 8 November 1995

ESKOM ACCOMMODATION POLICY

1. POLICY

Eskom endorses the Government's goal which recognises the right of all South Africans to a secure home in which to live in peace and dignity. While the Government is ultimately responsible for ensuring that housing is provided to all, Eskom will provide subsidies and support to employees to enable them to obtain appropriate accommodation. Eskom prefers that employees own the accommodation in which they reside.

2. POLICY INTENT

2.1 Interest subsidy

An interest subsidy through the Eskom Housing Subsidy Scheme will be made available to subsidise an employee's bond repayment in respect of a residential dwelling purchased for his personal occupation. The subsidy on a Personal Housing Loan will also be an interest subsidy.

2.2 Rental subsidies for private rental agreements

As an alternative to home ownership and by the choice of the employee, the employee will be eligible to receive a rental subsidy for a private rental agreement. The subsidy will be based on the Eskom Housing Subsidy Scheme’s principles and formulas.

2.3 Renting of Eskom accommodation

Employees will be able to rent Eskom accommodation at a market-related rental minus a subsidy. The subsidy will be based on the Eskom Housing Subsidy Scheme’s principles and formula.

2.4 Security of tenure

Eskom will support security of tenure by promoting individual and group ownership. Eskom houses will be made available for sale to Eskom employees in support of this long-term goal.

2.5 Education

Home owners, prospective home owners and tenants will be informed and educated about available options and processes in order to enable them to make informed choices.

14 04(1)EFFECTIVE FROM 1 JULY 2005

2.6 Structures to assist employees

Structures will be created and implemented to: Assist employees by, amongst other things, facilitating access to

the state capital subsidies to augment Eskom subsidies and make housing more affordable.

Facilitate community and employee involvement.

2.7 Support for first-time home owners

Additional support will be provided to first-time home owners.

2.8 Supply of accommodation

Eskom will facilitate the supply of accommodation meeting agreed minimum standards for purchase or rental where the market cannot supply such accommodation.

2.9 Freedom of choice

Individual freedom of choice will be allowed within the parameters of this policy.

2.10 Criteria for the allocation of vacant Eskom houses

Eskom houses will be available to all employees, subject to the availability of houses and to prevailing Eskom policies.

2.11 Phasing out of water and electricity subsidies

Water and electricity subsidies will be phased out over a period of seven years. (refer to paragraph 14.4 of Annexure 4) below.

3. INTRODUCTION

3.1 In line with the Reconstruction and Development Programme (RDP) and National Housing Policy, Eskom promotes long-term security of tenure for its employees to acquire their own homes either through individual or group ownership. Home ownership is thus the preferred option.

3.2 Eskom employees will have the right to purchase homes through the Eskom Home Ownership Subsidy Scheme (EHS) or to rent suitable accommodation. On exercising one of these choices, the employee will be granted an accommodation subsidy, which may be an interest subsidy or a rental subsidy. An employee who rents accommodation in subsidised Eskom single quarters may also qualify for the Personal Housing Loan (PHL) scheme under certain conditions (refer to paragraph 4.3 of Annexure 4).


3.3 An employee who is a member of a family already receiving a housing subsidy and who lives with his family will not be eligible for an accommodation subsidy. An employee will be required to state formally that he is the sole recipient of a subsidy for such accommodation.

3.4 Eskom housing will be offered for sale to Eskom employees, or made available to employees for rental, subject to the rules set out in the policy document and addenda.

3.5 In any one geographic area a limited number of dwellings may be retained by business unit management to facilitate transfers of employees. These dwellings will not be placed in the pool of dwellings to be made available for sale or rent but will constitute a quota for that business unit. These dwellings may, however, be rented on the basis of a 30-day notice period, depending on operational requirements.

3.6 Except where it is essential for operational reasons that an employee live within a certain radius as discussed in the Business Unit Forum, taking into account where employees currently live, employees will have freedom of choice as to where they wish to reside. Eskom will not be responsible for providing transport other than on current defined routes if an employee wishes to buy or rent accommodation outside the radius.

3.7 An employee receiving an accommodation subsidy shall occupy the property himself. In the case of a Personal Housing Loan, the property shall be occupied by the employee’s immediate family. Abnormal cases will be dealt with on an ad hoc basis.

4. INTEREST SUBSIDIES

4.1 Eskom Housing Subsidy Scheme (EHS)

Subject to the following restrictions, employees qualify for an interest subsidy on a bond. The property on which a subsidy will be paid also has to fall within certain categories.

4.1.1 Employees who are unmarried and under the age of 21 years are subject to the following Deeds office conditions.

· The bond shall not exceed R100 000 (in terms of Government Gazette).

· Approval shall be obtained from the Master of the Supreme Court.

Apprentices, learners and trainees do not qualify, except:

· Permanent employees who have become apprentices.· Where it can be established that their positions are

permanent.


Insolvent employees will regain all previous rights after rehabilitation.

Temporary, casual or occasional workers do not qualify.

4.1.2 Restrictions on the property

· A bond shall be registered on the property.

· The property shall be registered in the employee's name or in the name of his spouse or in both names.

· The value of the property shall provide adequate security to cover the bond.

· The extent of the property shall not exceed 8,565 hectares (10 morgen).

4.2 Rules and regulations

The complete set of rules governing Eskom Housing Subsidies and Personal Housing Loans is contained in the following three documents:

4.2.1 Guide to Rules and Regulations providing details of the Eskom Finance Company's rules as a financial institution.

4.2.2 Eskom Housing Subsidy Scheme Rules providing details of the rules as set out by Eskom as the employer.

4.2.3 Eskom’s Service Conditions.

4.3 Personal Housing Loans (PHL)

Employees who wish to acquire family accommodation in traditional rural areas and/or unproclaimed areas where bonds cannot be registered, qualify for a PHL (refer to 3.2).

5. PHASING IN OF INCREASED RENTALS AND PRIVATE RENTAL SUBSIDIES

5.1 Where employees prefer to rent, Eskom will provide a rental subsidy upon satisfactory proof that a dwelling has been rented.

5.2 Rentals will be governed by market forces and Eskom will not attempt to artificially level the inherent inequalities of the housing market.

5.3 The rental subsidy will be based on the same formula used in calculating the interest subsidy for home owners through the EHS.


5.4 Satisfactory proof of rental of a dwelling will be deemed to be the production of a valid lease agreement, preferably for twelve months or more. In order to continue to enjoy an accommodation subsidy on rented accommodation the employee shall furnish proof of renewal of the lease agreement to the appropriate Human Resources function. The HR function will be responsible for maintaining a follow-up system based on the anniversary dates of all employees who receive the accommodation subsidy on rented accommodation. Eskom reserves the right to inspect the leased property.

5.5 When an employee chooses to rent in the external market, he will be provided with a proposed rental agreement containing a transfer break clause. Use of such a clause will assist the employee in the event of transfer.

5.6 In choosing a home to rent, the employee will be assisted by Eskom by means of market information and guidelines to ensure that rentals are realistic and market-related. Eskom reserves the right to investigate the market before approving rental subsidies.

5.7 Care will be taken to ensure that sound comparisons are drawn between Eskom-owned properties and the general external market.

5.8 In the case of rental of Eskom housing proof of a lease agreement will not be necessary as the rental will be recovered from the employee’s salary.

5.9 In the allocation of Eskom dwellings for rental, preference will be given to married or single-parent employees who have their spouses and/or dependants living with them. Only when no married or single-parent employees who have their spouses and/or dependants living with them wish to rent or purchase Eskom dwellings may such dwellings then be offered to single employees for rental.

5.10 Where no Eskom accommodation is available or where employees wish to exercise their right not to make use of available Eskom accommodation, employees will be responsible for finding accommodation in the normal commercial market. Employees who have difficulty in locating accommodation of a suitable standard may enlist the assistance of the Unit or Regional Manager of Esprop through the participative structures.

5.11 The increased rentals will also apply to Eskom single accommodation.

5.12 Rental subsidies for employees with private rental agreements:

5.12.1 The full subsidy will be paid with effect from 1 January 1996.


5.12.2 The rental subsidy will be based on the same formula used in calculating the interest subsidy for home owners through the EHS. The subsidy will be calculated over a repayment period of 20 years and at an interest rate of 16% based on 25% of the employee’s basic salary. The rental subsidy paid to the employee will be the lower of the rental subsidy based on 25% of the employee’s salary and the rental subsidy on market-related rent.

5.12.3 Only employees who can provide valid lease agreements will receive rental subsidies.

5.12.4 An employee who has an existing Personal Housing Loan will be eligible to receive a rental subsidy for a house or flat but will then not be eligible for a future Personal Housing Loan.

5.12.5 An employee shall occupy the house for which he is receiving a rental subsidy.

5.13 Phasing in of increased rentals for Eskom houses and single accommodation over a seven year period

5.13.1 Renting of Eskom houses is subject to availability.

5.13.2 Rentals for Eskom houses and single accommodation will be increased over a seven year period until they are equal to market-related rentals minus a rental subsidy.

5.13.3 During the phasing period an employee whose rental is currently fully subsidised will pay the following percentages of the rental he should actually be paying.

1996 1997 1998 1999 2000 2001 2002

10% 25% 40% 55% 70% 85% 100%

5.13.4 The rental subsidy will be based on the same formula used in calculating the interest subsidy for home owners through the EHS. The subsidy will be calculated over a repayment period of 20 years and at an interest rate of 16% based on 25% of the employee’s basic salary. The lower of the rental subsidy based on 25% of the employee’s salary and the rental subsidy on market related rent will be used to calculate the applicable rental as per the phase-in described in paragraph 5.13.3.

See examples in Sections 15 and 16.

5.13.5 The process by which market-related rentals are to be determined will be formulated by the National Housing Steering Committee for consideration by the CNF. The market-related rental will be determined in the last quarter of every year and applied from 1 January of the following year.


5.13.6 The rental of employees currently paying a higher rental than that specified in the proposal will be frozen until the phased rental is equal to their current rental. Employees paying a higher rental than that proposed for year seven of the phasing will be placed on the rental proposed for year seven.

5.13.7 An employee moving from one house to another will pay the phased rental applicable to the specific house into which he moves. (subject to 5.13.6).

5.13.8 An employee currently renting a house from Eskom will have first right to continue to rent the house or to purchase the house.

5.13.9 An employee shall occupy the house for which he is paying subsidised rental.

5.13.10An employee with an existing Personal Housing Loan will be eligible to occupy an Eskom house or flat but will then not be eligible for a future Personal Housing Loan.

5.13.11The increased hostel rent will not be implemented until the upgrading of a hostel room has been completed.

5.13.12An employee not already renting Eskom accommodation but wishing to rent an Eskom house or flat will have to pay the phased rental as per year seven of the proposal. This is the full market-related rental minus the subsidy as calculated per paragraph 5.13.4.

5.13.13 The allocation of transit accommodation where employees are transferred must be dealt with in terms of Eskom’s service conditions.

6. SALE OF ESKOM HOUSES

6.1 Eskom's housing stock (except for quota houses) will be offered to Eskom employees, subject to qualifying in terms of Eskom's Housing Subsidy Rules.

6.2 In the sale of houses, preference will be given to married or single-parent employees who have their spouses and/or dependants living with them. Only when no married or single parent employees who have their spouses and/or dependants living with them wish to purchase an Eskom dwelling may such dwellings be offered for sale to single employees.

6.3 An employee who has purchased an Eskom dwelling will not be eligible to purchase another within a period of three years, except in circumstances where he has been transferred to another business unit and is obliged to move there.


6.4 Where there is no requirement from qualifying Eskom employees to rent or purchase an Eskom dwelling, Esprop will offer the dwelling for sale in the commercial market, subject to the provision that no such dwelling shall be offered for sale in the commercial market before 31 December 1996. In areas where it has been established that there are no Eskom employees who could buy the houses, such houses may be offered for sale in the commercial market after discussion by the National Housing Steering Committee.

6.5 The process by which the selling prices of Eskom houses will be determined is as follows:

6.5.1. Basic Principles

The following basic principles have been agreed on:(i) A centralised method is to be used(ii) Prices will be finalised on a decentralised basis(iii) The Housing Steering Committee and the Regional

Housing Committees will oversee the pricing process on their respective levels

(iv) Tax implications should be taken into account when determining the method

(v) Simplicity must prevail.

6.5.2. Transparent Process

An employee applying to buy a house will be allowed insight into all the information pertaining to the house he wants to buy.

6.5.3. Determination of the market values of Eskom houses

(i) The market value of a house will be the average of 2 valuations done by valuators registered with the institute.

(ii) One valuator will be appointed by Eskom.

(iii) The employee applying to buy the house will choose one valuator from a list developed by the Regional Housing Steering Committee.

6.5.4. Selling prices of Eskom houses

When buying Eskom Houses:

(i) Up to 31 December 1996 Employees shall receive a discount of 20% of the average market value of the house.

(ii) The discount will be processed via the payroll and will be taxable.

(iii) The after tax portion of the discount shall be used as a deposit on the house.


7. STRUCTURES

7.1 Where necessary, Eskom will develop and implement structures enabling employees to gain access to accommodation and providing information that will assist them in their decision-making. These structures will facilitate:

· The education process.· Housing transactions.· Access to state subsidies to employees who qualify.· Monitoring the implementation of the Housing Policy.· Initiatives that will enable our employees to gain access to

accommodation.· Initiatives which ensure employee and community involvement.

7.2 A "one-stop shop" for housing will be created.

The Eskom Finance Company will serve as a One-Stop-Shop for the Eskom Accommodation Policy. This will reduce the confusion as to whom the employee should see when he decides to enter into any form of accommodation contract to be subsidised by Eskom, and will provide:

7.2.1 Education

The complete education package as envisaged by Eskom and the trade unions will be presented by appropriately trained EFC practitioners. This programme will be tested at the CNF

7.2.2 Rental subsidy administration

Systems and facilities to administer the rental subsidies will be implemented in order to provide a complete service to Eskom and its employees.

7.2.3 State capital subsidies

An application will be made to the Director of Housing to enable the EFC to act as a government agent in order to facilitate Eskom employees' access to these subsidies.

7.2.4 Interest subsidies

The Eskom Finance Company will provide the administration of interest subsidies.


7.3. The National Housing Steering Committee will:

7.3.1. Monitor the implementation of the Housing Policy. Accounting systems will be developed and implemented to assist with the implementation and monitoring of the new Housing Policy. The monitoring of the implementation process will be carried out in cooperation with the CNF.

7.3.2 In cooperation with the Esprop Manager, investigate potential joint ventures for the provision of accommodation to employees. These initiatives will depend on demand and each venture will be structured according to the specific needs.

7.3.3 Coordinate implementation in order to ensure fair implementation and the investigation of needs and local conditions without diluting the overall intent of the total Eskom Housing Policy.

7.3.4 Coordinate National Housing Forum representation through SACOB and the BSA. Currently representation is being formalised.

7.3.5 Facilitate community and employee involvement at local level.

8. SUPPORT FOR FIRST-TIME HOME OWNERS

8.1 The Eskom Housing Subsidy Scheme is available to employees wishing to use the interest subsidy as an option. The interest subsidy is geared to support first-time home owners who can only afford a smaller bond as their subsidies are proportionally higher than those of employees who can afford larger bond repayments.

8.2 Structures that will assist employees with accommodation will be implemented and adapted from time to time in order to meet the requirements of the changing environment.

8.3 Education programmes will be presented to provide Eskom employees with requirements so that they can make informed choices.

8.4 A Communication Strategy specific to Eskom’s Accommodation Policy will be adopted to reach and involve all Eskom employees.

8.5 Support structures such as the One-Stop Shop are being put in place to assist all employees.

8.6 To make it as easy as possible for the first-time home buyer or anyone else who qualifies for the state's capital subsidy to gain access to this subsidy, in order to make housing more affordable, Eskom will facilitate the process.


8.7 Alternatives to facilitate owner-building and protect owner-builders as well as Eskom will be investigated on a continuous basis.

9. SUPPLY OF ACCOMMODATION

9.1 Should the Esprop Manager be satisfied that the normal commercial market is unable to meet the needs of the employee(s), the Esprop Manager will facilitate the purchase, rental or construction of dwellings of an appropriate standard, taking into consideration community needs and standards.

9.2 In the event of construction of a new power station or other operational function such as a major substation, Eskom will be responsible for ensuring that the normal market can provide for the accommodation needs of the power station employees. In the event that the market is unable to provide such accommodation, Eskom will facilitate the provision of appropriate accommodation of a suitable standard at market-related rentals or purchase prices to these employees.

10. SWITCHING BETWEEN RENTAL AND INTEREST SUBSIDIES

From 1 January 1996 no employee will be allowed to change from an interest subsidy on a bond to a rental subsidy unless he is transferred by Eskom and is required, as a result, to move to his new workplace. Other exceptional cases will be evaluated on an ad hoc basis.

11. SECURITY OF TENURE

11.1 Sale of Eskom houses

11.1.1 There will be no contractual control over the resale of dwellings purchased from Eskom.

11.1.2 An employee who currently rents a dwelling from Eskom will have first right to continue to rent the dwelling on implementation of the Accommodation Policy.

11.1.3 An employee who currently rents a dwelling from Eskom will have first right to purchase the dwelling after implementation of the Accommodation Policy.

11.1.4 Housing currently let to non-Eskom employees will be offered for rental or sale to qualifying Eskom employees subject to the law of ‘hire goes before sale’. The existing tenant’s lease must reach its full term first. (See Section 18 for criteria for allocation of Eskom houses).


11.2 Unproclaimed areas

11.2.1 The proclamation of Eskom villages and flats is in process and proclamation of all villages and flats except Drakensberg is anticipated. The purpose of the proclamation is to enable Eskom to sell the houses in these areas.

11.2.2 It is illegal to sell residential property in an unproclaimed area. For this reason, employees who wish to purchase in an unproclaimed town will be allowed to obtain an option to purchase at the specified price, which price shall remain fixed for a period of 24 months.

11.2.3 During the period of occupation of a dwelling on which the employee holds an option, the employee shall pay the prevailing Eskom rentals.

11.3 Security of tenure with regard to rental

11.3.1 Death

In the event of the death of an employee, the employee's spouse will be allowed to continue to occupy the dwelling at a subsidised rental for a period of four months after the decease of the employee. Thereafter the spouse shall vacate the dwelling, subject to the following:

(a) The surviving spouse of an Eskom employee will have the pre-emptive right to purchase the dwelling that is occupied by the spouse on the terms and conditions outlined in Eskom's Accommodation Policy with regard to the sale of houses.

(b) Such pre-emptive right shall be exercised in writing before the expiry of a four-month period following the death of the Eskom employee.

11.3.2 Prolonged illness

In a case of prolonged illness where an Eskom employee no longer has any vacation or sick leave to his credit, and is financially unable to afford the rental, the Business Unit Manager may elect to subsidise the employee's contribution to the rental of the dwelling.

11.3.3 Retrenchment

Where an Eskom employee occupies a rented Eskom dwelling and is retrenched by Eskom, Eskom will allow the employee to continue to rent the dwelling at a subsidised rental for a period of six months. Thereafter the employee may be allowed to occupy the dwelling at a normal market-related rental if there is no demand for the dwelling by Eskom.


Where an employee is retrenched by Eskom and occupies a dwelling rented from a third party, Eskom will include in the employee's retrenchment package an amount as negotiated at the CNF. The employee will remain personally responsible for the rental payments.

11.3.4 Divorced/widowed

If an Eskom employee who has dependent children and occupies a dwelling rented from Eskom gets divorced or is widowed, the employee will be allowed to continue to occupy the dwelling.

11.3.5 Retirement/resignation

In the event of retirement or resignation, an employee may elect to purchase a dwelling rented by him from Eskom at prevailing market rates, subject to the operational requirements of the BU. Where the employee does not exercise this option, the dwelling rented from Eskom shall be vacated within 30 days of the date of retirement/resignation.

12. EDUCATION

12.1 Intent

Through a process of education and information every Eskom employee will be made aware of the benefits of the Eskom Accommodation Policy and be empowered to:

12.1.1 Understand and be aware of his rights, risks and responsibilities.

12.1.2 Apply this knowledge to obtain appropriate accommodation by making use of the most effective subsidy scheme available to him.

.12.2 Quality criteria

12.2.1 Every employee without exception must:

Be informed about the policy, what it is and the reasons for it.

Be able to identify his own position and know what aspects of the policy apply to him.

Be aware of the benefits, rights, risks and obligations/responsibilities applicable to his choice.


Be able to determine the affordability of his choice.

Know where to get detailed information and advice on the procedures and administration requirements in terms of both of his current position and his next option(s).

12.2.2 Administration support and counselling staff should have:

Detailed exposure to the policy, with emphasis on the principles involved.

Been trained in the procedures and systems, supported by appropriate manuals, hard copies, computer systems, etc.

The knowledge as to whom and where to obtain expert advice (e.g. EFC, etc)

. The appropriate competencies to advise Line Managers

and decision makers.

12.2.3 Information and education appropriate to the different levels or target populations should be developed.

12.2.4 The education programme should be able to tie in with future education interventions regarding for instance, subsidised meals, catering, subsidised water and lights, transport policies, etc.

12.2.5 Appropriate and user-friendly systems should be in place.

13. DETERMINATION OF MINIMUM ACCEPTABLE STANDARDS FOR ESKOM SINGLE QUARTERS

.13.1 Minimum acceptable standards

13.1.1 Overview

The following minimum standards have been compiled after consultation with parties from within Eskom, the hostel residents themselves, representative trade unions, the CSIR and the National Housing Forum. While it is probable that all the single-quarter rooms and related facilities will far exceed the standards set out, the objective is to ensure that the residents in Eskom hostels have these minimum facilities available to them.

Once these standards have been finalised and the gap between current and proposed standards has been measured, the costing of the project will be carried out.


13.1.2 Individual choice

The resident’s right to decide whether he wishes to live in a single room or in communal quarters cannot be ignored. There is concern that individuals will be forced to move into the more private facilities whereas there are those residents who may wish to remain in communal rooms.

13.1.3 Room occupancy and size

(i) Only one person shall occupy a single room which shall be approximately 12-14 m2 in size. The size of the room may vary from one place to another depending on the physical structures already in place. The minimum acceptable standard will be approximately 12 m2.

(ii) The new accommodation will contain no self-catering facilities. There are numerous reasons for this, the most obvious concerns being safety, insurance and hygiene factors.

.13.1.4 Furniture

While Eskom will attempt to maintain some extent of uniformity on a national basis, it must be accepted that there will be differences in the appearance of furniture. It is recommended that all rooms could be equipped with the following:

(i) Metal bed base with a spring mattress.(ii) Vinyl tiles and rugs.(iii) Curtains.(iv) Bedside tables.(v) Cupboard or lockers that can be locked.(vi) Desk and chair.(vii) Reading lamp.(viii) Doors with locks.

13.1.5 Electricity

While all hostels currently have electricity, rooms will be provided with the following electrical appliances and fittings in future:

(i) At least one plug fitting.(ii) Built-in space heater, where appropriate. This will

depend on the location of the quarters.(iii) Overhead light.(iv) The rooms at Matimba will be provided with

fansinstead of heaters.

14 04 (15)EFFECTIVE FROM 1 JULY 2005

13.1.6 Ablution facilities

Current ablution structures at the Eskom hostels will allow for the following facilities to be provided to the residents. The facilities set out below will be shared by five single-quarter residents:

(i) Ablution facilities including hot, running water,(ii) One toilet with seat and cover,(iii) One basin,(iv) One shower fitted with shower curtain for privacy,(v) One mirror,(vi) Towel rail or hooks on which to hang towels,(vii) The passage between the rooms and the ablution

blocks will be covered,(viii) Urinals will be included in the ablution blocks.

13.1.7 Other

The following will be provided:

(i) Basic laundry facilities consisting of washtubs, ironing tables, plug points and washing lines.

(ii) Ventilation in buildings.(iii) Painted walls as per normal maintenance

requirements.(iv) Predetermined maintenance standards will be adhered

to including replacement of burnt-out light bulbs, plumbing repairs, ensuring that ablution blocks have toilet paper, etc.

(v) Cleaning of rooms, including basic dusting, emptying refuse bins, etc on a weekly basis.

(vi) Cleaning of ablution blocks on a daily basis.(vii) Guest toilets for visitors to the single quarters.

13.1.8 Security

The following security will be provided:

(i) Rooms that can be securely locked.(ii) Access control at the main entrance to the single

quarters. Day guests will be signed in and out by the single-quarter residents.

(iii) Demarcated parking bays.

13.1.9 Sports, recreation and entertainment facilities

Eskom will provide the following facilities:

(i) Television lounge (one television set for every 50 residents).

(iii) Bar facilities on cost-recovery basis.


(iv) Indoor entertainment facilities. Where the cost of these facilities is deemed to be high (pool tables, etc.),

(v) these will be provided on a user-pay principle.(vi) Public telephones.(v) Library facilities are deemed to be a reasonable

request and Eskom will endeavour to make this service available to the residents. This issue should be dealt with by ABD. Mobile libraries and other available resources will be used where possible.

13.2 Measuring the gap between existing and proposed standards

It should be noted that in order to close the gap between existing and proposed standards, all existing accommodation will have to be physically upgraded so as to turn the communal rooms into single rooms.

One of the serious problems the hostels currently face is the fact that each hostel has its own set of standards in terms of the furniture. Following an evaluation of all the hostels, it is estimated that approximately 75% of all the rooms will have to be refurbished in terms of providing items such as reading lamps, study desks and chairs, etc. Almost none of the rooms currently have these articles.

13.3 Implementation of the upgrading

Closing the gap between current conditions at Eskom single quarters and the proposed standards should begin as soon as feasible.

14. PHASING OUT OF WATER AND ELECTRICITY SUBSIDY

The water and electricity subsidy currently received by employees will be phased out over a period of seven years, during which the employee will receive the following units of electricity and water free of charge.

14 04(17)

EFFECTIVE FROM 1 JULY 2005

14.1 Proclaimed municipal areas

1996 1997 1998 1999 2000 20012002Water (kl) 27 23 18 14 9 5 0Electricity Octoberto March (kWh) 450 375 300 225 150 75

0Electricity April toSeptember (kWh) 720 600 480 360 240 120 0

14.2 Outside proclaimed municipal areas

1996 1997 1998 1999 2000 2001 2002

Water (kl) 27 23 18 14 9 5 0

Electricity Octoberto March (kWh) 900 750 600 450 300 150

0Electricity April toSeptember (kWh) 1 710 1 425 1 140 855 570 285

0

14.3 Employees currently residing in Eskom single accommodation and moving to Eskom family accommodation will receive the phased water and electricity subsidy payable at the date of movement and this subsidy will be phased out as described above.

14.4 Employees not currently residing in Eskom accommodation will not receive water and electricity subsidies when moving into Eskom Houses.

14.5 Employees currently residing in Eskom Houses but not receiving water and electricity subsidies will still not receive water and electricity subsidies.


15. 7 YEAR PHASING EXAMPLE

7 YEAR PHASING EXAMPLECurre

nt199

6199

7199

8199

9200

0200

12002

Market rental (level 1 house)

1400 1540

1694

1863

2050

2255

2480

2728

Rental subsidy 558 598 642 690 743 801 865 935Employee should pay 842 942 105

2117

3130

7145

4161

51793

Employee pay 42 94 263 469 719 1018

1373

1793

Increase in employee rent

52 169 206 250 299 355 420

Eskom pay 1358 1446

1431

1394

1331

1237

1107

935

Market rental (level 2/3 house)

1200 1320

1452

1597

1757

1933

2126

2338

Rental subsidy 501 535 573 643 660 710 765 825Employee should pay 699 785 879 954 109

7122

3136

11513

Employee pay 35 79 220 382 603 856 1157

1513

Increase in employee rent

44 141 162 222 253 301 356

Eskom pay 1165 1242

1232

1216

1154

1077

969 825


1000 1100

1210

1331

1464

1611

1772

1949

Rental subsidy 442 472 503 538 576 618 664 715Employee should pay 558 628 707 793 888 993 110

81234

Employee pay 32 63 177 317 488 695 942 1234Increase in employee rent

31 114 140 171 207 247 292

Eskom pay 968 1037

1033

1014

976 915 830 715

Market rental (level 4 house)

800 880 968 1065

1171

1288

1417

1559

Rental subsidy 383 407 433 462 492 526 563 604Employee should pay 417 473 535 603 679 762 854 955Employee pay 32 47 134 241 373 533 726 955Increase in employee rent

5 86 107 132 160 193 229

Eskom pay 768 833 834 824 798 755 691 604



600 660 726 799 878 966 1063

1169


16 59 75 93 114 139 165

Eskom pay 584 628 635 632 619 593 551 492


400 440 484 532 586 644 709 779


3 34 43 55 67 84 101

Eskom pay 384 421 432 438 436 427 408 377

Market rental (hostel/S.Q.)

300 330 363 399 439 483 531 585


12 24 29 35 45 54 70

Eskom pay 298 316 326 333 337 337 331 314

Market rental (hostel/S.Q.)

200 220 242 266 293 322 354 390


7 15 19 23 27 32 39

Eskom pay 198 211 218 223 227 230 230 227

NoteMarket rental increase by 10% per year


16. EXAMPLES OF THE CALCULATION OF INCREASEDRENTAL PAYMENTS WITH EFFECT FROM JANUARY 1996

Example 1

Employee's basic salary per month (M/P) R7 16825% of employee’s basic salary R1 792Rental subsidy based on 25% of employee's basic salary R 935Market-related rental R1 100Rental subsidy on Market-related rental R 472

Rental payment = 10% (1 100-472) = R63 per month

Example 2

Employee's basic salary per month (CU) R5 22225% of employee's basic salary R1 305Rental subsidy based on 25% of employee's basic salary R 742Market-related rental R1 100Rental subsidy on Market-related rental R 472

Rental payment = 10% (1 100 - 472) = R63 per month

Example 3

Employee's basic salary per month (CL) R4 20425% of employees basic salary R1 051Rental subsidy based on 25% of employee's basic salary R 642Market-related rental R1 100Rental subsidy on Market-related rental R 472Rental payment = 10% (1 100-472) = R63 per month

Example 4

Employee's basic salary per month (BU) R2 81225% of employee’s basic salary R 703Rental subsidy based on 25% of employee's basic salary R 503Market-related rental R1 100Rental subsidy on Market-related rental R 472

Rental payment = 10% (1 100-472) = R63 per month


Example 5

Employee's basic salary per month (BL) R2 13625% of employee’s basic salary R 534Rental subsidy based on 25% of employee's basic salary R 433Market-related rental R 880Rental subsidy on Market-related rental R 407

Rental payment = 10% (880-407) = R47 per month

Example 6

Employee's basic salary per month (AAA) R1 66425% of employees basic salary R 416Rental subsidy based on 25% of employee's basic salary R 383Market-related rental R 660Rental subsidy on Market-related rental R 339

Rental payment = 10% (660-339) = R32 per month

17. EXAMPLES OF PRIVATE RENTAL SUBSIDY CALCULATIONS FOR 1996

NB: The lower of the rental subsidy based on 25% of employee’s salary and the rental subsidy based on Market-related rental will be paid to the employee.

Example 1

Employee’s basic salary (M/P) R7 16825% of employee’s basic salary R1 792Rental subsidy based on 25% of employee's basic salary R 935Market-related rental R1 100Rental subsidy on Market-related rental R 472

* Rental subsidy for 1996 R 472

Example 2

Employee’s basic salary (CU) R5 22225% of employee's basic salary R1 305Rental subsidy based on 25% of employee's basic salary R 742Market-related rental R1 100Rental subsidy on Market-related rental R 472



Example 3

Employee’s basic salary (CL) R4 20425% of employee’s basic salary R1 051Rental subsidy based on 25% of employee's basic salary R 642Market-related rental R1 100Rental subsidy on Market-related rental R 472


Example 4

Employee's basic salary per month (BU) R2 81225% of employees basic salary R 703Rental subsidy based on 25% of employee's basic salary R 503Market-related rental R1 100Rental subsidy on Market-related rental R 472


Example 5

Employee's basic salary per month (BL) R2 13625% of employees basic salary R 534Rental subsidy based on 25% of employee's basic salary R 433Market-related rental R 880Rental subsidy on Market-related rental R 407


Example 6

Employee's basic salary per month (AAA) R1 66425% of employees basic salary R 416Rental subsidy based on 25% of employee's basic salary R 383Market-related rental R 660Rental subsidy on Market-related rental R 339


18. CRITERIA FOR THE ALLOCATION OF VACANT HOUSES

The following criteria will take effect from 1 January 1996:

18.1 Qualification criteria

Subject to the availability of family accommodation any permanent employee, as defined in Eskom’s service conditions, qualifies to rent any Eskom house, excluding:

18.1.1 employees who have a Home Ownership Scheme loan;


18.1.2 employees and their dependants who will not personally reside in the accommodation.

18.2 Monthly rental payable

18.2.1 Employees currently living in Eskom houses will keep on paying their present rental until 31 December 1995, after which the rental as per the new Accommodation Policy will apply.

18.2.2 An employee currently residing in Eskom’s single accommodation and moving into a house will pay the current rental applicable to the house into which he moves from January 1996 he will pay the phased rental as per this Accommodation Policy.

18.2.3 Employees not currently residing in Eskom accommodation but who will now move into Eskom accommodation will pay the phased rental as per year 7 of the Accommodation Policy, i.e. means the full market-related rental minus the subsidy calculated as per paragraph 5.13.4.

18.3 Allocation of houses

18.3.1 Preference will be given to employees with dependants and only if there are no employees with dependants on the waiting list will accommodation be allocated to single employees.

18.3.2 Management and trade unions shall discuss at BU level which of the vacant houses, if any, should be kept vacant to facilitate transfers of employees.

18.3.3 All Eskom employees applying for housing shall do so in the area where they work and houses will be allocated in accordance with the criteria in 18.3.4.

An employee currently occupying a house may, subject to the payment of the agreed cost, apply to move to a house at the same or a higher level than his present house. A move to a house at the same level shall be motivated by the employee and discussed by the Regional Housing Steering Committee.

18.3.4 Houses will be allocated in accordance with the following criteria:

Applicants will be allocated points and houses will be allocated by starting from the employee with the most points and proceeding to the employee with the least points.

Points will be allocated as follows:

One point for every completed year of Eskom service and one point for every dependant.


Residential properties will administer the waiting list and will update the waiting list every quarter.

18.3.5 Where Eskom houses are required to house Eskom employees, private individuals will be given notice in terms of their contracts. They will be given notice in the following order.

(a) Individuals not in any way attached to, or rendering a service to Eskom.

(b) Contractors rendering a service to Eskom, excluding Rotek.

(c) People rendering community services, e.g. post office, shops and municipality.

(d) People rendering a critical community service, eg. police, medical, health and education service.

(e) Eskom pensioners.

18.3.6 Houses allocated per contract to coal mines supplying coal to Eskom are not regarded as Eskom houses.

18.3.7 This process will be coordinated by Housing Committees comprising members from the various Eskom Groups and all the trade unions.

18.4 Personal Housing Loans

An employee who has an existing Personal Housing Loan will be allowed to apply for a house, but once an employee has received a rental subsidy for a house he will not be eligible for a future Personal Housing Loan.


Accommodation[1]20

Documents

ad hoc basis

personal housing

personal housing

eskom finance

private rental

eskoms service

related rental

time home