City Power (CP) started implementing new electricity tariffs on July 1, introducing relief measures for indigent and low-income households to alleviate the impact of increased service and availability charges.

The increases, approved by the National Energy Regulator of South Africa (Nersa), reflect an average tariff adjustment of 12.41% across the CoJ entity’s customer categories for the 2025/2026 financial year.

The changes are based on Nersa’s methodology and findings from CP’s cost of supply study, which considered operational expenses, Eskom bulk price hikes, and the utility’s financial structure, balanced with the economic conditions affecting its customers.

Tariffs are reviewed annually to ensure they remain reflective of service delivery costs while maintaining financial sustainability. This review complies with the Municipal Finance Management Act, the Electricity Regulation Act and relevant Nersa guidelines. It also considers public input received through the Integrated Development Plan and other regulated consultation processes.

Mangena stressed that while the average increase is 12.41%, actual adjustments will vary per customer category based on usage and tariff structure.

Support for low-income prepaid residential customers

The Residential Prepaid Low tariff aimed at indigent households continues to exempt qualifying customers from the R70 service charge and the R130 network capacity charge, totalling R200 in monthly savings.

A customer on this tariff using 374kWh per month will now pay R947.86, up from R840.74, an increase of R107.12 (or 12.74%).

Customers on the Inclining Block Tariff (IBT) structure will be charged:

• Block 1 (0-350kWh): R2.4986/kWh (up from R2.2162/kWh);

• Block 2 (351-500kWh): R3.0564/kWh;

• Block 3 (>500kWh): R3.7042/kWh.

This translates to R874.51 for the first 350kWh (up R98.84) and R73.35 for the next 24kWh (up R8.29). All charges exclude VAT and remain subject to final Nersa confirmation.

Qualifying households receiving the Expanded Social Package (ESP) will continue to benefit from 50kWh of free basic electricity (FBE) monthly to cover essential needs.

CP urges qualifying households in Johannesburg to register or update their information to continue receiving this critical subsidy.

Indigent customers

To ensure wider access to subsidies, CP launched a registration campaign on June 17, running until July 31, aiming to reach 130 000 indigent customers.

This drive is a proactive step to reduce electricity theft, ease grid overloading and improve revenue collection. During this period, customers with damaged or tampered meters will have them replaced free of charge, without penalties.

To qualify for FBE, households must:

• earn R7 503.01 or less monthly;

• be the legal occupants of the property;

• meet the criteria set in the city’s indigent policy.

Registration points include CP service delivery centres, CoJ regional offices, pop-up stations, taxi ranks, churches, malls, SASSA points and door-to-door community campaigns.

This initiative is part of CP’s strategy to promote equitable access to electricity while addressing infrastructure challenges and ensuring financial sustainability.

Residential prepaid high customers

Customers on the residential prepaid high tariff will see an average increase of 11.66%, mainly driven by higher energy charges. The fixed R70 service charge and R130 network capacity charge remain unchanged.

A customer using 800kWh monthly will now pay R2 635.82, up from R2 360.57, an increase of R275.24.

Updated IBT for this category:

• Block 1 (0-350kWh): R2.6645/kWh (up from R2.3634/kWh);

• Block 2 (351-500kWh): R3.0564/kWh;

• Block 3 (>500kWh): R3.4826/kWh.

The average selling price now stands at 329.48c/kWh, up from 295.07c/kWh. All prices exclude VAT and are subject to Nersa approval.

Adjustments for business, agricultural and large power users

CP’s revised 2025/2026 tariff structure includes targeted adjustments for businesses, farms, resellers and large power users (LPUs) to ensure service delivery and cost-reflective pricing.

These adjustments aim to shift revenue recovery toward fixed charges, reducing reliance on variable energy charges.

Business and agricultural customers:

• Service and capacity charges: +18.32%;

• Energy charges: +13.32%.

These changes support the recovery of maintenance and network costs while ensuring long-term reliability.

Business resellers:

• Fixed charges: +18.32%;

• Energy charges: +9.67%.

The reseller energy tariffs are capped at 90% of standard business tariffs to maintain a 10% price differential and support affordability for end-users.

Large power users (LPU)

• Fixed charges: +18.32%;

• Network demand charges: +17.92%;

• Energy charges: +9.82%.

These adjustments reflect the infrastructure costs required to serve high-demand users.

LPUs using Time-of-Use (ToU):

• Same fixed and demand increases as LPUs;

• Energy charges: +10.32%.

The gap between LPU and ToU rates is being narrowed for equity and efficiency.

Additionally, the minimum demand charge for LPU customers is based on the highest of 70kVA, actual measured demand, or 80% average of the top three demands over a rolling period of 12 months.

Wheeling tariffs

The CoJ council has approved wheeling tariffs, enabling third-party energy trading via the CP grid. Customers will be billed for full use, while supply from third parties will be discounted at the Wholesale Electricity Pricing System rates.

These adjustments support financial sustainability while promoting fair, reliable and equitable access to electricity for all users.

“City Power remains committed to delivering affordable, reliable electricity to all Johannesburg residents while tackling infrastructure challenges and curbing theft and vandalism. We encourage all customers to monitor their consumption and visit our website for details on tariffs and energy-saving tips.”