Joburg Electricity Surcharge Confusion

Johannesburg residents are voicing frustration after reports suggested the City planned to raise the monthly prepaid electricity surcharge from R200 to R270. Many residents, already struggling with rising food prices and utility bills, reacted strongly to the proposed increase. But the City of Johannesburg has now addressed the controversy and clarified the facts.

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No R270 Hike—Surcharge Stays at R200 for Now

Johannesburg Finance MMC Margaret Arnolds confirmed that the surcharge will remain at R200, excluding VAT. Once VAT is added, customers pay a total of R230 per month for the fixed electricity surcharge.

Speaking to broadcaster eNCA, Arnolds said, “The City of Johannesburg is not increasing the surcharge. It remains at R200, and with VAT, it will be R230.”

Her comments come in response to widespread backlash over what many believed to be a confirmed price hike.

Where Did the R270 Figure Come From?

Confusion erupted after the City tabled draft proposals to raise the prepaid surcharge to R270 and the network capacity charge from R130 to R200. While these proposals exist, the council has not approved any of them yet.

Arnolds explained that these ideas remain under discussion and would only move forward after public consultation. “It is not what you think it is. These are proposals. We are still collecting feedback,” she said.

ActionSA Pushes Back Against the Increase

Opposition party ActionSA reignited public concern in March when it claimed the City “wants to increase this unjust surcharge to R270.” The party pledged to vote against any increase and to stand with residents who oppose the charge.

Many residents argue the surcharge punishes low-usage households and believe they should not pay a fixed fee if they buy little to no electricity in a given month. Activists have been calling for the City to scrap the surcharge altogether.

Why the City Charges R200 per Month

The City introduced the R200 fixed surcharge for prepaid customers on 1 July 2024. Officials say the fee is necessary to fund the maintenance of Johannesburg’s fragile electricity infrastructure, which faces frequent disruptions due to cable theft, illegal connections, and aging systems.

City Power stated the goal was to share the costs of maintaining the infrastructure across all users, regardless of how much electricity they consume. Former Mayor Kabelo Gwamanda defended the move, warning that without this surcharge, the city’s infrastructure would collapse.

Other Cities Use Similar Surcharges

Arnolds reminded residents that Johannesburg is not alone. “Cape Town introduced its surcharge long before us. Ekurhuleni is adopting one, and Tshwane is also on track,” she noted. Several metros across South Africa have adopted similar models to recover infrastructure maintenance costs in a more consistent and predictable way.

Surcharge Applies Even if You Don’t Buy Electricity

One of the biggest pain points for residents is that the City still charges the R200 monthly fee even if customers don’t purchase any electricity. Critics argue that this model penalizes low-income households, pensioners, and anyone trying to reduce their usage to save money.

Arnolds acknowledged the frustration but emphasized that the model supports critical infrastructure projects the city can’t afford to delay.

What Happens Next?

While no official increase has taken effect, the City is reviewing the proposals and intends to consult the public before moving forward. Residents should use this opportunity to participate in feedback processes and make their voices heard.

The final decision will depend on public input, budget constraints, and political negotiations in the Joburg council chambers.

Residents Must Stay Engaged

Although the R270 hike hasn’t been approved, its consideration highlights ongoing tensions between the City’s financial needs and public affordability concerns. As energy costs continue to climb, residents should stay alert to policy changes, attend public hearings, and hold leaders accountable.

Key Points at a Glance:

• The prepaid electricity surcharge stays at R200 (R230 with VAT).
• No official increase to R270 has been approved yet.
• City Power introduced the surcharge in July 2024 to fund infrastructure maintenance.
• ActionSA and residents oppose the surcharge, especially for low-usage customers.
• Other metros like Cape Town and Ekurhuleni also charge similar fixed fees.
• Residents should watch for public consultations and voice their concerns.