Implications of CoJ scrapping R200 electricity surcharge to be seen in 2025 - SALGA

JOHANNESBURG - The South African Local Government Association (SALGA) says the financial implications of Johannesburg's controversial electricity surcharge can only be known in 2025 if the city decides to scrap it now.

Johannesburg City Power started charging prepaid customers a R200 monthly service and network fee.

However, a majority of political parties in the Johannesburg council have vowed to reverse it after an outcry from affected residents.

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For this financial year, the Johannesburg municipality has projected it will make R21.5 billion from electricity services – 12% higher than the previous year.

It said its projection was based on its tariff increases and lowering the money it lost to illegal connections.

The chief of operations at SALGA, Lance Joel, said the projections would need to be massively revised if the R200 surcharge was scrapped.

"It will then have to be factored into the budget and the budget would have to be reprioritised and that would include reprioritising spending."

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