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  • keyboard_arrow_rightJoburg residents hit with R200 monthly prepaid electricity surcharge

Joburg residents hit with R200 monthly prepaid electricity surcharge

By: Natasha Archary

R200 monthly prepaid electricity surcharge
Image: Adobe Stock

Johannesburg residents are fuming after City Power implemented a R200 monthly prepaid electricity surcharge that kicked in from Monday, 01 July.

The new charges will mean residential prepaid customers are expected to pay a monthly service fee of R70, and a R130 network capacity charge.

This R200 fee excludes VAT, and will charged on top of the 12.72% tariff increase that also came into effect on 01 July.

On Monday, residents who purchased prepaid electricity vouchers expressed their shock at finding that the R200 surcharge was deducted, leaving them with fewer units of electricity.

This means that if at the beginning of the month a customer purchases electricity for less than R400, the payment will be split between covering the fixed charge for consumption, to ensure that the customer gets some kWh with every purchase, until the minimum threshold of R400 is reached.

It will however not be possible to accumulate non-payment of the total basic charge beyond one calendar month.

In other words, should a customer buy a R300 prepaid electricity voucher on the first day of the month, R70 will be set aside for VAT and a monthly service fee, the balance of R260 will be split 50/50 between covering the fixed charge (R130) and the remainder R130 towards purchasing kWh’s.

City Power General Manager for Pricing and Tariffs, Frank Hinda said electricity provision is expensive and the power utility has no choice but to transfer some of the costs to the consumer.

“City Power is the end of the value chain, meaning we source electricity from the bulk energy supplier, namely Eskom.

More than 70% gets channeled to bulk purchasing costs and that has been the key driver in tariff increases.

Which leaves us with no choice but to pass on some of these costs to the customer, in order to cushion the most vulnerable or indigent customer.

The R200 monthly fee will only be charged to prepaid customers and not post-paid (those who receive bill at end of month).

Only indigent prepaid customers will be exempt from the R200 monthly prepaid electricity surcharge. To qualifiy as indigent you need to earn below R6 000 and will have to register for it.”

Also read: WATCH: Popular Skeem Saam star’s house burns down

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