Johannesburg scraps pre-paid electricity levy

The City of Johannesburg has decided to scrap the R200 levy it intended charging all pre-paid meter customers for the next financial year.

The city is under pressure and battling to collect revenue during the lockdown, so far only R1.8 billion of its R3.8bn target has been reached.

The charge had resulted in an outcry from residents, in particular lower-income earners who live in the inner-city.

This resulted in accusations the city was squeezing poorer people living in difficult conditions.

During the proposed 2020/21 budget, the city announced that the surcharge, an “availability charge” would be levied.

City officials cited poor economic conditions as the reason for the u-turn on the levy.

Although there have been no cut-offs in the city for arrears, as this is illegal in terms of lockdown, pre-termination notices are still being served and will be implemented after lockdown officials have indicated.

The proposal contained in the draft budget would have meant that Joburg households and businesses using prepaid electricity  pay a R200 basic charge for prepaid residential customers and R400 for prepaid business customers.

The charges were proposed in order to close the gap between prepaid and conventional users. Residential users who have been buying electricity on credit are currently paying fixed charges of R527 per month.

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