Have your say: City Power increases electricity tariffs
City Power has announced the implementation of new tariffs effective from July 1, as part of its efforts to balance financial sustainability with social responsibility.
The electricity tariffs, approved by the National Energy Regulator of South Africa (NERSA), will see an average increase of 12.41% across various customer categories for the 2025/26 financial year.
According to the utility spokesperson Isaac Mangena, 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 (MFMA), Electricity Regulation Act, and the relevant NERSA guidelines. It also considers public input received through the integrated development plan (IDP) and other regulated consultation processes.”
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Mangena added that while the average approved increase is 12.41%, actual increases will vary per customer category, based on usage and tariff structure. However, he emphasised measures to cushion low-income households from the impact of these hikes. “We understand the economic challenges faced by many Johannesburg residents. That’s why we are maintaining support for indigent households through exemptions and free basic electricity.”
Residential prepaid low (indigent) customers
These customers will remain exempt from the R70 service charge and R130 network capacity charge, ensuring a total relief of R200.
For a typical indigent household consuming 374kWh monthly, the bill will increase from R840.74 to R947.86 which is R107.12 rise, or 12.74%.
Customers will be charged on the inclining block tariff (IBT) structure as follows:
- Block 1: (0-350kWh): R2.4986/kWh (up from R2.2162/kWh)
- Block 2: (351-500kWh): R3.0564/kWh
- Block 3 (>500kWh): R3.7042/kW
This means the first 350kWh will now cost R874.51, an increase of R98,84, while the next 24kWh will cost R73.35, R8.29 more. All tariffs are exclusive of VAT and remain subject to NERSA’s financial information.
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Registered indigent households qualifying for the expanded social package (ESP) will continue to benefit from free basic electricity (FBE), receiving 50kWh per month.
City Power has launched a registration drive, which will run until July 31, aiming to register 130 000 indigent households, ensuring continued support for those most in need.
To qualify for the FBE, households must earn R7 503.01 or less per month, be legal occupants of the property, and meet the criteria outlined in the city’s indigent policy.
Residential prepaid high customers
Customers on the residential prepaid high tariff will see an average increase of 11.66%, primarily due to increases in energy charges.
The fixed monthly charges: R70 service charge and R130 network capacity charge, will remain unchanged. A typical customer consuming 800kWh per month will now pay R2 635.82, up from R2 360.57, which is R275.24 more.
Updated inclining block energy charges for this category are as follows:
- 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
This translates to an average selling price of R329.48/kWh, up from R295.07/kWh. All prices exclude VAT and are subject to NERSA approval.
Business, agricultural, reseller, and large power user customers
City Power’s 2025/2026 tariff structure includes targeted adjustments across business, agricultural, reseller, and large power user (LPU) categories to ensure sustainable 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
The service and network capacity charges are increased by 18.32%, while the energy charges increase by 13.32%. These changes support recovery of maintenance and network costs while ensuring long-term reliability.
Business resellers
The fixed charges increased by 18.32%, while the energy charges increased by 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)
The fixed charges increased by 18.32% and the network demand charges increased by 17.92%, while the energy charges increased by 9.82%. These adjustments reflect the infrastructure costs required to serve high-demand users.
Large power users – Time-of-use (ToU)
Same fixed and demand charge increases as is the case for LPU, while the energy charge increases by 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 3 demands over a rolling period of 12 months.
Wheeling tariffs
The City of Johannesburg Council has approved wheeling tariffs to enable third-party energy trading over the City Power grid. Customers will be billed for full consumption, with third-party supply discounted at WEPS rates. These adjustments support financial sustainability while promoting fair, reliable, and equitable access to electricity for all users.
“Our goal is to ensure that all residents have access to electricity that is both affordable and sustainable. We urge our customers to register for indigent support and to work with us in creating a more equitable energy future for Johannesburg,” Mangena concluded.
Residents were asked to share their thoughts on the City Power increase in electricity tariffs, and this is what they had to say…
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