City Power board says scrapping R200 surcharge will have negative impact on its ability to supply power

JOHANNESBURG - The Joburg City Power board said that the scrapping of the R200 electricity surcharge would have a negative impact on its ability to supply power to residents. 

As of 1 July, City Power began charging its customers on prepaid meters a monthly R200 service and network capacity fee. 

While the tariff was passed by the Johannesburg council back in May, the widespread outcry has brought it back to the minds of many political parties in the city.

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 For many years, Joburg City Power has been charging post-paid and large power users a network and service fee. 

The only type of user that was exempted from this fee, were prepaid customers. 

City Power board chairperson, Bonolo Ramokhele, said this levy was introduced following a cost of supply study, which looked at how much it costs the utility to generate electricity and cost of maintaining the power network. 

"We must maintain the lines, substations, you name it and if we don’t invest in infrastructure, it will crumble and creates a much bigger problem for all of us."

The Johannesburg council is set to meet soon for a debate and vote on scrapping the R200 electricity surcharge.