Joburg surcharge increase: City clears the air

Joburg residents are fuming over proposed plans to increase the prepaid electricity surcharge from R200 to R270 a month.

The Joburg council recently proposed increasing the prepaid electricity surcharge and the network capacity charge from R130 to R200.

It sparked backlash from consumers who are already struggling with high food prices and increases in other utility costs.

Surcharge to remain

Joburg Finance MMC Margaret Arnolds said the charge remains at R200 for the time being.

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

While Arnolds claims the media caused the confusion about the increase, ActionSA, in a March post on X, claimed the city “wants to increase this unjust surcharge to R270.”

The party said it “remains resolute and will vote against it.”

ALSO READ: You will still be charged R200, even if you don’t buy prepaid electricity

Proposals for an increase

While the surcharge remains the same, Arnold admitted there are proposals for an increase.

“It is not what you guys perceive it to be. Remember, we still have a draft of all the proposals that are out there.”

She said any decision would be made after considering residents’ feedback.

What surcharge?

City Power introduced the R200 (R230 including VAT) fixed charge on 1 July 2024 to “share the costs of maintaining electricity infrastructure with its customers” and ensure a fair distribution of the upkeep costs, helping to sustain reliable service amid challenges like cable theft and illegal connections.

Since the announcement of this charge, Johannesburg residents and opposition parties have petitioned to get rid of it.

While acknowledging opposition to the surcharge, former Joburg Mayor Kabelo Gwamanda said Johannesburg’s infrastructure would fall apart without it.

ALSO READ: R200 electricity surcharge will remain until 2025, says Mashaba