City Power Targets ‘Affluent’ Prepaid Users with R2,400 Annual Charge

The City of Johannesburg is doubling down on its controversial R200 monthly prepaid electricity surcharge, insisting that the fee is meant to ensure that wealthier households contribute fairly to service and maintenance costs.

Speaking at a Johannesburg Chamber of Commerce event on 13 February, City Power CEO Tshifularo Mashava addressed the backlash against the charge, emphasizing that it was introduced to prevent affluent residents from dodging standard service fees.

Targeting Wealthier Prepaid Users

Mashava acknowledged public concerns about the fee but made it clear that lower-income households may receive exemptions, while affluent areas will continue paying the charge.

“The R200 was implemented to ensure that residents in affluent areas, particularly those who have transitioned to prepaid meters, contribute to the maintenance and service costs, much like their postpaid counterparts,” she explained.

The city’s power utility has noticed a growing trend where wealthier residents switch from post-paid to prepaid meters to avoid maintenance charges, which currently sit at around R1,000 per month. This shift has forced the municipality to explore alternative ways of ensuring these users still contribute to essential infrastructure upkeep.

Annual R2,400 Charge and Future Increases

The R200 monthly surcharge (R230 after VAT) was introduced in July 2024, alongside the city’s annual tariff hikes. The city council had attempted to introduce similar fees in previous years but backed down following public outcry.

Initially, the proposed fee was R550 per month, but it was revised down. However, the city has indicated that further increases are on the horizon.

City Power justified the charge by arguing that even though prepaid users consume electricity on demand, the network must still ensure availability, meaning they should contribute similarly to postpaid users.

Pushback and Political Response

The fee has been met with widespread backlash, both from the public and political figures. When first introduced, then Finance MMC Dada Morero promised a review of the charge, but after his election as Johannesburg mayor, there has been little indication of meaningful changes.

In addition to the prepaid surcharge, City Power has also been targeting households that bypass meters, forcing those found guilty onto post-paid billing systems.

Despite ongoing criticism, both City Power and city officials have made it clear that the surcharge is here to stay, though adjustments may be made to expand the list of exempt households under the Expanded Social Package (ESP).

What’s Next for Joburg Residents?

With City Power awaiting NERSA’s approval for the 2025 tariff increases, residents can expect further updates on electricity costs in the coming months. However, the city has made one thing clear: affluent prepaid users will continue contributing through this surcharge—whether they like it or not.

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