Joburg's middle and high-income earners hit by City Power's new R200 charge

• City Power has announced a new monthly deduction of R200 from prepaid electricity recharges for middle and high-income earners in Johannesburg, approved by NERSA to cover network and service charges
• Many residents are outraged, feeling unfairly targeted and burdened in an already challenging economic environment
• City Power justifies the charge as necessary for infrastructure maintenance and long-term sustainability

Reitumetse Makwea is an experienced Briefly News journalist based in Pretoria, South Africa, who has covered current affairs with The Citizen News and Rekord Noweto for over five years.

City Power has announced a new monthly deduction of R200 from prepaid electricity recharges for middle and high-income earners in Johannesburg. Images: Reitumetse Makwea and Marco Longari. Source: Getty Images

City Power has announced a new monthly deduction of R200 from prepaid electricity recharges for middle and high-income earners in Johannesburg.

The deduction, approved by the National Energy Regulator of South Africa (NERSA), is intended to cover network and service charges but has left many residents feeling frustrated and unfairly targeted.

This is amid the increase in electricity costs for Eskom and City Power in the city.

Residents speak out

The announcement has sparked outrage among residents, many of whom feel that the new charges are an added financial burden in an already challenging economic environment.

Speaking to Briefly News, Johannesburg resident Thabo Mokoena, who lives in the upscale suburb of Sandton, expressed his displeasure with the new charges.

“This is just another way to squeeze money out of us. We are already paying high tariffs, and now this R200 deduction every month? It's ridiculous."

In the suburb of Rosebank, Helen van der Merwe shared similar sentiments.

“I understand the need for infrastructure maintenance, but this flat rate seems unfair. It doesn’t take into account the varying levels of electricity consumption among users.

"Why should we pay the same amount as someone who consumes significantly more electricity?"

Economic concerns among residents who are renting

The timing of the new charges has also been criticised, with many pointing out the economic challenges households face due to the ongoing impacts of the COVID-19 pandemic.

Lebo Ngcobo, a resident of Randburg, told Briefly News that the financial strain on families was now becoming unbearable with the current state of the economy.

“Many of us are renting, and the financial hits we took during the pandemic we are still feeling them. This additional cost is going to hurt, especially for those of us who are managing tight budgets. It feels like we’re being punished for choosing prepaid electricity."

"Many of us, especially those renting, will tell you we have extra charges from third parties who we buy electricity from. Now we are getting even more costs that do not make sense it really is unfair."

City Power’s justification for the flat rate

In an interview with SABC News, City Power spokesperson Isaac Mangena they explained that customers using prepaid meters currently benefit from the cheapest available tariff plan, which does not include a basic charge.

“However, should the customer at the beginning of the month purchase electricity for less than R400, the payment will be split between covering the fixed charge and charges for consumption of electricity to ensure that the customer gets some kWh with every purchase until the minimum purchase threshold of R400 is reached.

"It will, however, not be possible to accumulate non-payment of the total basic charge beyond one calendar month. This fixed charge will help us maintain and upgrade our infrastructure, which is essential for providing uninterrupted power supply to our customers. We understand the concerns, but this is a necessary step to ensure long-term sustainability."

See the post on the tariff increases on X below:

Johannesburg residents upset over City Power's 12.72% electricity cost spike

Johannesburg’s prepaid electricity clients were surprised by City Power’s 12.72% price hike, which took effect on 1 July 2024.

The power utility said a cost-of-supply study informed the newly implemented price adjustments.

The electricity provider said some customers would experience a slightly lower tariff increase while others may see one above 12.72%.