City Power Is Charging Poor Black Townships More For Electricity, Says Experts
- City Power's decision to increase prepaid electricity prices by six to twelve times the inflation rate for its poorest customers has caused widespread discontent, as noted by experts
- The price hike, significantly higher than Eskom’s rates for disadvantaged communities, disproportionately impacts low-income households
- OUTA and the DA have condemned the increase and criticised the City for poor communication about the new R200 monthly surcharge
Reitumetse Makwea, a Briefly News current affairs journalist in Pretoria, South Africa, has covered court and crime-related news at The Citizen and Rekord Noweto for over five years.
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City Power's decision to raise prepaid electricity prices for many of its poorest customers by six to twelve times the inflation rate will cause an uproar among residents.
According to experts, this increase is notably higher than Eskom’s prepaid tariff rates for disadvantaged communities, sparking widespread discontent.
Joburg and Eskom prepaid electricity prices
In a report on My Broadband, Energy expert Chris Yelland highlighted the broader implications of the price hike, noting the disproportionate impact on low-income households.
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"The increase is not only excessive but also places an undue burden on the most vulnerable members of our society. With the high cost of living, such measures could push more families into financial distress."
He said City Power, which the City of Johannesburg owns, distributes and sells electricity to most residential customers in the Johannesburg metropolitan area.
However, due to historical circumstances, Eskom, South Africa’s national electricity utility, continues to provide electricity directly to specific households in Johannesburg.
"Particularly in areas like Soweto and other relatively poor black townships, informal settlements, and rural regions."
More organisations against the surcharge
The Organisation Undoing Tax Abuse (OUTA) is the latest group to oppose City Power's R200 surcharge on prepaid customers.
This new fee means City Power customers using prepaid meters will have R200 deducted monthly from their electricity purchases to cover service and network capacity charges.
Speaking to 702, OUTA's CEO, Wayne Duvenage, criticised the City for lacking communication regarding the surcharge.
"Our snap survey shows that about 70% of people were unaware... The City has not done a good job in getting this information across to the residents, especially the poorest of the poor."
The Democratic Alliance (DA) has also condemned the increase, labelling it "unjust and unfair."
Joburg residents slam Joburg Mayor for calling them “stooges” amid surcharge controversy
Briefly News reported that Joburg Mayor Kabelo Gwamanda sparked controversy by labelling opponents of Johannesburg's new R200 electricity surcharge as "stooges".
Critics, including residents and netizens, condemned his remarks as unprofessional and disrespectful.
Despite fairness claims, the surcharge has divided opinion, with residents urging better communication and transparency from the City regarding its economic impact and implementation.
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Source: Briefly News
