Johannesburg Prepaid Electricity Users Face R250 Monthly Charge Hike

Residents in Johannesburg could soon be paying R250 per month in prepaid electricity service charges—up from R200—if the City of Johannesburg’s proposed tariff hikes for 2025/26 are approved.

The City of Johannesburg has tabled its new rates and charges proposal, which includes a 40% increase in the prepaid electricity service charge. If implemented, this would amount to an extra R3,000 per year (excluding VAT) for affected users.

The increase comes on top of a 12.7% electricity tariff hike, raising concerns about affordability as the cost of living continues to rise.

Backlash Over Prepaid Electricity Charges

The R200 prepaid service charge was first introduced in July 2024, despite major public opposition. The city justified the fee by arguing that prepaid users must contribute to grid maintenance costs, similar to post-paid users who pay around R1,000 per month in service charges.

“These above-inflation hikes will plunge residents deeper into financial distress while service delivery continues to deteriorate,” said DA Johannesburg councillor Chris Santana.

Santana highlighted that residents still face water outages, load-shedding, and unreliable service delivery, making the proposed increase unfair and unjustified.

How the Prepaid Charges Work

Johannesburg’s prepaid electricity users are divided into two categories:

• Low users (indigent households): Exempt from the charge

• High users (affluent customers): Required to pay the fee

According to City Power CEO Tshifularo Mashava, the capacity charge is specifically targeted at wealthier prepaid customers, particularly those who switched to prepaid meters to avoid higher post-paid fees.

Additional Tariff Hikes for 2025/26

Apart from the electricity price increase, Johannesburg residents could also face:

• 13.9% increase in water and sanitation tariffs

  • The free 6 kilolitres allocation will be removed if water restrictions are declared.

• 6.6% increase in refuse collection fees

• 4.6% increase in property rates, with schools facing higher charges

What Happens Next?

The proposed increases are subject to public consultation and approval before they can be implemented in July 2025. However, with ongoing economic pressure on households, the city may face strong resistance from residents and political opposition.

{Source BusinessTech}

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