Joburg 'committed' to reviewing R200 electricity surcharge

In July, City Power announced that residential prepaid customers would be charged an additional R200 basic charge for electricity network and service charges.

The fee consists of an R70 service charge and an R130 network capacity charge before VAT is considered.

This would be charged on top of the 12.72% tariff increase that also came into effect on 1 July 2024.

Mayor Kabelo Gwamanda has previously defended the city's decision to implement the new deductions.

At the time, Gwamanda said the COVID-19 pandemic had delayed the implementation of the resolution passed by the council in 2018.

On Thursday, the council approved a R2.5 billion loan from the French Development Agency to alleviate the metro’s financial pressure and fund key projects such as the maintenance and refurbishment of water and electricity infrastructure.

According to the city, the introduction of the surcharge is also an attempt by the cash-strapped municipality to collect more revenue to invest in new electricity and water infrastructure.

In a brief statement on Friday, the city's spokesperson Virgil James said Morero remained committed to reviewing the move.

"Councillor Dada Morero says calls by residents for the review of the R200 prepaid surcharge have not fallen on deaf ears. He says the government of local unity is committed to reviewing the charge in relation to the importance of infrastructure maintenance, including the cost of supply studies done by City Power."

Morero said the objective is not to burden residents and businesses but to ensure a financially viable city.

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