Nersa to force City of Joburg residents to pay 12.72% more for electricity from 1 July

The National Energy Regulator of South Africa (Nersa) has approved City Power’s application for a tariff increase.

As of 1 July 2024, City of Johannesburg (CoJ) residents will be paying an extra 12.72% with customers on the Extended Social Package paying 6.21% more.

City Power states the new tariffs were determined by the outcome of their cost of supply study as well as discussions during the recent Integrated Development Plan sessions held across the city.

Incoming basic charge for residential prepaid

City Power will be phasing in a basic charge for customers making use of prepaid metres in their homes.

Without stipulating a time frame, City Power said residential prepaid customers will pay a monthly service fee of R70, as well as a R130 network capacity charge. These amounts are excluding VAT.

ALSO READ: Winter in the dark: Load reduction on the cards for some Joburg areas – City Power

City Power’s threshold tariff system remains in place. This system sees the first set of kWh charged at a base rate, before increasing to a higher tariff after a set threshold of units is consumed.  

“Our tariff application to Nersa was in line with the consideration of the current economic conditions where most of our residents are affected by the rising costs of living, and we considered our customers’ best interest to cushion them while ensuring sustainable service delivery continues,” said City Power spokesperson Isaac Mangena.

City Power and CoJ to settle R1 billion Eskom debt

Just a week ago, Eskom obtained a court judgment against the CoJ for an account that had been outstanding since October 2023.

ALSO READ: High Court orders Joburg and City Power to pay R1.073 billion debt to Eskom

The total amount owed by the CoJ to Eskom was R3.4 billion, with the CoJ making a counter-claim of a similar amount by Eskom to the City.  

The counterclaim was dismissed by the court, ordering the CoJ to pay a portion of the debt by 21 June 2024.

Both entities are in dire need of funds to maintain, with Eskom saying they had no choice but to approach the courts.  

“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation,” stated Eskom.