The Johannesburg Metropolitan Municipality council has approved major structural changes in prepaid meter electricity tariffs and tariff rates and submitted them to the energy regulator, Nersa, for approval for implementation next month.
For its so-called Residential Prepaid High tariff, which applies to the majority of low-income customers with prepayment electricity meters, City Power has proposed a 12,5% increase in its variable energy tariff rates for the 2024/25 financial year. Also, they have applied for an additional fixed cost of R230 per month.
The Residential Prepaid Low tariff applies to households in areas served by City Power that are currently formally registered and appear on the Indigent Register of the City of Johannesburg. The Residential Prepaid High tariff applies to all other households with residential single-phase prepayment meters in areas served by City Power.
National Treasury has allocated an equitable share grant to the City of Johannesburg for free basic electricity. This grant is intended for approximately 950 000 indigent households in the metropolitan area of Johannesburg. However, the citys own data indicates that around 670 000 households live below the lower-bound poverty line. Surprisingly, the self-reported data from the city in the annual StatsSA non-financial census of municipalities suggests that only just under 30 000 indigent households are registered to receive free basic electricity.
This means that 95-97% of all indigent households in the Johannesburg area are not on the Indigent Register, and subject to the Residential Prepaid High tariff increases.
The average low-income household consumes around 200 kWh of electricity each month. In 2023/24, this usage would have cost R482 per month. In 2024/25, the cost for the same electricity consumption will be R774 (see Table 1). This represents a 60% increase within a one-year period.
Between 640000 and 920000 indigent households in Johannesburg will be very surprised and shocked, and maybe even a tad angry, if NERSA approves the citys new prepayment electricity tariffs.
Residential Prepaid High tariff
Block 1 (0 350 kWh)
R2,41
R2,72
Block 2 (350 500 kWh)
R2,77
R3,12
Block 3 (> 500 kWh)
R3,15
R3,55
Service charge
R0,00
R80,05
Capacity charge
R0,00
R149,50
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