R200 surcharge a contributing factor in CoJ’s electricity revenue increasing by R1.3 billion

JOHANNESBURG - The City of Joburg’s electricity revenue has increased by R1.3 billion in the current financial year, with its controversial R200 electricity surcharge being a contributing factor.

The city council adopted an adjustment budget on Thursday, which moved its total annual revenue from R76 to R77 billion.

As of July last year, prepaid electricity customers in the city were forced to pay an additional monthly fee to City Power for service and network charges.

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The city said the R1.3 billion increase in electricity revenue was a result of enhanced revenue collection initiatives and the reduction of load shedding.

While the R200 electricity surcharge has been a burden to millions of households in Johannesburg, the city’s books show that it brought some financial relief to its purse.

City Power has also intensified its cut-off operation in recent months, which essentially compels its corporate customers to settle their hefty electricity bills.

But African National Congress (ANC) councillor, Thapelo Radebe, said those who wanted the R200 electricity surcharge scrapped in the adjustment budget needed to understand that it’s not as simple as it seems.

"The surcharge that ActionSA is against is a tariff charge from City Power. It went through public participation. Sections 74 and 75 of the Municipal Systems Act tells us that if there are tariffs that we need to change, we should go to the public and do a consultation, not what ActionSA is saying we should do."

Action SA said that by implementing the surcharge, the city was selfishly ignoring that many residents were struggling to make ends meet.