Joburg walks back controversial electricity charge – but big hikes are still coming
The City of Johannesburg will not introduce an additional R230 monthly electricity surcharge for prepaid users this year.
This was confirmed by senior officials to Times Live this weekend.
“Please note that there won’t be capacity charges (surcharge) included in the financial year’s tariffs. This was discussed extensively in the recent Integrated Development Plan consultation meetings held at all seven city regions, and comments were received and analysed accordingly,” the city said.
It added that the final electricity tariff increases – currently a proposed 14.59% across the board – would still be tabled in council towards the end of May for consideration and approval.
The City of Johannesburg’s Jolidee Matongo told eNCA that the charge was suggested to ensure that all residents and paying businesses were paying for maintenance and repairs on the network.
“The users who are on conventional electricity systems, are already paying a surcharge. They are paying towards the maintenance and repairs of the electricity network,” Matongo stated.
However, after public consultation, Matongo said the city realised the economic conditions in the country were such that residents could not afford the charges. It therefore decided to drop the implementation of the charge – for the time being.
Cost crisis averted for now
The proposal was included in the city’s draft budget for 2021/22, and would have seen a fixed monthly service charge of R230 added to domestic prepaid bills. R460 was proposed to be added to the prepaid bills of businesses.
Civil society group Outa said that this is the third year that the city has tried to add a monthly surcharge for prepaid electricity users.
The group said that the proposed costs were unreasonable, particularly as prepaid electricity is usually used by lower-income households and SMMEs. It added that the economic situation facing residents is extremely difficult, particularly after the pandemic lockdowns.
“The city should produce a cost-of-supply study to motivate the need for such a charge. In the absence of such a study, we regard this charge as irrational and call for it to be reconsidered,” said Brendan Slade, Outa legal project manager.
“For a household, the cost of buying 350kWh a month would increase from R596.17 to R913 (53%) with the new levy; even if the levy is removed, the power charge increase takes the bill to R683 (a 15% increase).
“Using 500kWh a month increases from R791.53 to R1,248.78 (58%); without the levy the increase is to R1,018.79 (29%). “These charges are unreasonable and unjustifiable, particularly in the lower blocks,” said Slade.
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