City Power explains meter deductions
This is to explain why new prepaid electricity meter boxes carry surcharges and how City Power aims to resolve that. Customers seeking clarity or support can contact City Power directly or visit their website.
City Power has addressed concerns raised by customers regarding unexpected deductions linked to newly installed prepaid meters, particularly those replaced during the KRN2 project in November 2024.
The utility provider has assured customers that these deductions, referred to as surcharges, are not overcharges or faults but are related to backdated service charges accrued since the introduction of new tariffs in May 2024.
According to City Power, the surcharges resulted from the service charge system implemented in July 2024.
Residential customers with new meters have had their accounts reconciled to calculate outstanding charges from July to December 2024. For most residential customers, this amounts to R1 200 (excluding VAT).
When customers purchase electricity, a portion of their payment is allocated towards settling this outstanding balance. For example, if R100 is spent on electricity, a maximum of R50 may be deducted to recover the debt, with the rest converted into electricity units. This process will continue until the full R1 200 (excluding VAT) is recovered.
Once the backdated charges are fully paid, customers will only need to cover the ongoing monthly service charge of R200 (excluding VAT). City Power has advised customers to stay consistent with their electricity purchases to avoid further accumulation of charges.
For financially strained customers, City Power encourages applying for the Expanded Social Package. The programme offers reduced service charges and free electricity allocations to qualifying customers, helping them manage their electricity costs more effectively.
For businesses, service charges are higher at R1 500 per month. Business customers must ensure their purchases exceed R1 500 to avoid disruptions in receiving electricity tokens.
“We regret any confusion or inconvenience this may have caused and appreciate your understanding as we address these matters. City Power remains committed to improving communication with our customers and ensuring transparency in all aspects of our services,” expressed City Power’s general manager for public relations and communication, Isaac Mangena.
