R553 more for electricity? – What you need to know about City Power’s upcoming tariff hikes

Johannesburg power utility City Power has dismissed claims it is looking to charge its customers R553.73 as part of tariff adjustments from July this year.

The utility cautioned against untrue and misleading claims from political parties looking to win favour during election season.

“City Power would like to warn political parties to refrain from using an important and emotive subject such as tariff changes to cause alarm, for political point scoring,” said the utility’s spokesperson Isaac Mangena.

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City Power response to false claims

Mangena confirmed that the entity was set to restructure tariff structures and levels to set the electricity price changes. But he said no increases were yet approved.

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“Once the necessary processes have been concluded and a decision has been made, City Power will inform customers on the implications of the changes which are necessary for the sustainability of the utility and its ability to continue providing improved services” Mangena added.

12.75% increase?

According to the utility discussions among customers and relevant entities will determine whether the suggested 12,72% tariff increase will be put into effect in July.

From those discussions, a decision will be tabled at the Johannesburg City Council taking into account the interest of the customers and the inflation in operational expenses.

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But can residents afford electricity?

A recent study found that more than 40% of South Africans have gone without electricity because they could not afford it.

Of those who took part in the FinScope Consumers South Africa 2023 Survey, 29% said they had no means or plans to raise money for alternative energy like solar or gas.

New tariff structure

City Power said its new tariff structure is set up to accommodate low-wage consumers.

“The entity has been implementing lower tariffs in comparison to the approved NERSA rate and other municipalities. Even during this tariff cycle, the applicable rate to individual customers will vary to ensure that low-income customers and those who fall under the indigent program are not charged the same rate”.

The new proposed division means “low-use indigent” customers will not pay both service and capacity charges.

“This is done to shield them from prevailing economic climate and the high cost of living,” the utility said.

Residential “high-use regular” consumers will be charged service and network operating and maintenance costs to “gradually align to the tariff applicable to the residential conventional tariff”.

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