Joburg speaker dismisses debate on R200 prepaid electricity tariff

The Speaker of the Johannesburg Council Margret Arnolds has ruled a debate over the R200 prepaid electricity charge in Johannesburg is not urgent.

Action SA on Tuesday requested a debate on City Power’s decision to place the fixed fee from this month. But his was rejected by the speaker.

“The debate on the R200 surcharge charge is not urgent, on the basis that the executive mayor has been on various media platforms regarding the issue and also City Power has clarified the issue,” Arnolds said.

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The City of Johannesburg implemented the charge along with a 12.7% electricity hike that has left many residents in a tight financial position.

The hike was approved by the National Energy Regulator of South Africa (Nersa) following City Power’s application.

The City of Johannesburg has been struggling with its finances and the surcharge was intended to provide revenue to fund Johannesburg’s investment into new electricity infrastructure and the maintenance of existing infrastructure.

Only City Power customers will be affected by the R200 fixed rate. This is the first time that City Power customers have contributed to the new charges.

A loan

Meanwhile, a majority of councillors voted against an R2.5 billion loan that the MMC of Finance and the ANC had proposed to keep the city afloat.

Councilors debated the loan for the fourth time but the loan proposal failed.

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Former mayor Dada Morero had appealed to councillors to support the loan for the City to be able to meet its service delivery commitments.

But opposition parties such as the DA said they were concerned about how the loan would be repaid and at what cost to the residents of Johannesburg.

The City had recently also borrowed R2 billion from the Development Bank of South Africa (DBSA. At the time the loan was approved the City was in a financial crisis with staff being uncertain if they would get paid at the end of the month.