Joburg mayor Gwamanda says R200 electricity surcharge introduced in interest of fairness

Despite opposition, Johannesburg’s Mayor Kabelo Gwamanda has defended the city’s introduction of a R200 electricity surcharge for prepaid customers, emphasising the need for fairness and transparency around tariffs.

In a statement on Thursday, Gwamanda said the surcharge aims to fund new infrastructure and maintain existing infrastructure.

Everyone will pay R200 electricity surcharge

Gwamanda stressed that post-paid customers have already been paying the surcharge, and it is unfair for them to subsidise prepaid customers.

The mayor dismissed criticism from the Democratic Alliance, accusing them of sensationalising the issue for political gain.

[Media Statement] EXECUTIVE MAYOR GWAMANDA ON THE NEW ELECTRICTY SURCHARGE FOR PRE-PAID CUSTOMERS pic.twitter.com/TntVyIkWN1

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— Exec. Mayor Kabelo Gwamanda (@KabeloGwamanda) July 4, 2024

He pointed out that similar surcharges are being implemented in DA-run municipalities.

“The Democratic Alliance and its stooges are opportunistically sensationalising a sensitive matter that concerns us all. They are attempting to subvert council decisions by arousing public sentiment under false pretence to gain political mileage. The surcharge being introduced in Johannesburg is currently being implemented across DA run councils across the country, including in Cape Town and Tshwane,” he said.

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While acknowledging opposition to the surcharge, Gwamanda said Johannesburg’s infrastructure will fall apart without it.

“Any attempt to sabotage this critical intervention is an attempt to deliberately collapse the city’s infrastructure,” he warned.

The mayor assured residents that the city understands residents’ economic challenges but must act responsibly to ensure equality and sustainability.

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“The new electricity surcharge is a necessary intervention to create fairness and equality in the city’s tariffs regime. Post-paid customers have 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.

“We cannot with good conscience disadvantage one customer base in the interests of the other.”

ActionSA calls electricity charges ‘unjustified’

ActionSA has rejected the new electricity service charges imposed on Johannesburg residents by City Power, following a council decision in April 2024.

On Wednesday, ActionSA reiterated its objection to the “unjustified” service charges, citing the burden on residents struggling to make ends meet.

“ActionSA maintains our objection to the unjustified service charges, particularly because we acknowledge the plight of residents, especially those languishing in poverty or just about managing to make ends meet, who simply cannot bear the extra burden imposed by the governing chaos coalition,” said the party’s caucus leader Nobuhle Mthembu.

Mthembu said ActionSA plans to reverse the decision and explore alternative revenue collection methods at the next council sitting.

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ActionSA also demanded that City Power pursue payment from defaulting provincial departments, including education, health, and housing.

‘Residents penalised for City’s inefficiencies’

The Organisation Undoing Tax Abuse (Outa) has also called for the electricity surcharge to be scrapped.

“Outa believes this charge will have significant financial repercussions on our communities, especially those who are most vulnerable. It must be scrapped,” says Julius Kleynhans, the executive manager for local government at Outa.

He said the new prepaid electricity charge “penalises households for their efforts to control and reduce their electricity consumption”.

Outa also accused the City of Johannesburg of passing costs on to residents due to its own inefficiencies, such as inadequate debt collection and high electricity losses.