City Power clarifies monthly fixed charges for prepaid customers
The fixed charge remains R200 (excluding VAT) and has not increased.
City Power has addressed concerns and confusion surrounding the monthly fixed charges applied to prepaid electricity.
As part of the tariff adjustment approved by Nersa, which took effect in July 2024, a fixed monthly charge of R200 (excluding VAT) was introduced for prepaid customers. This charge includes an R70 service charge and an R130 network capacity charge.
According to City Power, here’s what you need to know:
1. The R200 monthly charge is automatically deducted from the total amount paid when purchasing electricity. For example, if you purchase electricity for R500, R200 plus VAT will be allocated toward the fixed charge, and R300 will be converted into electricity units.
2. Another example is that if you only spend R100, a portion of that amount will be deducted toward the fixed charge, and the rest will go toward electricity units until the R200 fixed fee is fully recovered for that month.
Also read: Pensioners say no to increased tariffs
3. In some instances, when you have not purchased electricity for several months – often due to tampering, bypassing of meters, or long-term non-purchase – that amount of unpaid fixed charges accumulates for that period. Once those meters are normalised, the unpaid charges are backdated, and deductions may exceed the usual R200 when the customer resumes purchasing electricity.
4. If you have not paid the fee for more than 12 months, you would be owing R2 400 including VAT, which will be accumulated in installments depending on the purchasing period.
Also read: City Power explains meter deductions
City Power urges community members who have accumulated debt to visit their nearest service delivery centres to make a one-time payment and settle outstanding fees. Additionally the fixed charge remains R200 (excluding VAT) and has not increased.
“We also wish to emphasise that the reports claiming that City Power will be increasing the surcharge as part of the new tariffs are devoid of any truth and seek only to create panic on the eve of the new tariffs implementation,” says City Power’s spokesperson Isaac Mangena.
