City Power surcharge: Residents say extra R200 buys far less units

Two residents from Lufhereng in Johannesburg voiced deep concern over City Power’s recent introduction of a R200 surcharge on prepaid electricity, emphasising the impact on their daily lives and household budgets.

Lebohang Ngobeni said they were expecting the electricity hike but were surprised by the new surcharge added to their bill.

“Normally, when we buy R400 electricity, we get around 120 units. But this time we bought the same amount and only got 60 units, which won’t even last us halfway through the month,” she said.

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“It is hitting very hard. I don’t have any alternatives. One day we will be in the dark because we can’t afford to add on electricity. We are already on survival mode as it stands,” Ngobeni said.

Calls for it to be scrapped

The Organisation Undoing Tax Abuse (Outa) called on Joburg municipality to scrap new R200 prepaid fixed charge.

Julius Kleynhans, executive manager for local government at Outa, said this charge would have significant financial repercussions on communities, especially those who were most vulnerable.

“For many residents, particularly low-income families who rely on prepaid meters to manage their electricity usage, this extra R230 a month is an insurmountable expense,” he said.

“It effectively penalises these households for their efforts to reduce their electricity consumption, undermining the principles of fairness and equity,” Kleynhans said.

Kabelo Gwamanda, Joburg’s mayor, defended the surcharge as a move to ensure fairness in tariff distribution. He said post-paid customers had been paying the surcharge and only pre-paid customers were excluded.

“What the introduction of the surcharge now seeks to do, is to end the unfair subsidisation of prepaid customers by post-paid customers,” he said.

“It is intended to provide revenue to fund the city’s investment in new electricity infrastructure and for the maintenance of the existing infrastructure,” Gwamanda said.

ALSO READ: You will still be charged R200, even if you don’t buy prepaid electricity

Thuli Mbhele, another resident from Lufhereng, said: “I bought electricity as I normally do but I am told I owe City Power an outstanding debt of R200.

“How do I owe them when I just purchased electricity,” she asked. “I depend on my kids’ social grants and the jobs I do on the side. This R200 is a lot for me.

“I will end up using a paraffin stove. I am cautious of how I use electricity and hardly use things like an iron, microwave or heater,” she said.

Peter Baur from School of Economics at the University of Johannesburg said electricity should be considered a human right.

“Including a fixed tariff to the already variable tariff could be considered harmful,” he said.

“There are a large number of South Africans living in poverty, and growing numbers of unemployed people.

“Given the limited household income, this makes the distribution of income within the household even more difficult,” Baur said.

“People now need to choose between electricity, school, healthcare, or food.

“The more severe the impact on the household, the more dangerous spending decisions become,” Baur added.

Could encourage illegal connections

Kleynhans said practical repercussions of the surcharge on poor communities would encourage illegal connections.

“The service charge might drive some residents to seek illegal electricity connections as a desperate measure to avoid the additional costs,” he said.

There was a higher risk of electricity disconnections as households struggle to afford the new charge, he said.

“We can expect a rise in electricity poverty. This will leave many families without power, impacting their ability to cook, heat their homes, and provide a safe environment for their children,” Kleynhans added.