City of Johannesburg
By Mpho Moloi
The City of Johannesburg has proposed increasing the controversial prepaid electricity surcharge from R200 to R270 per month, as outlined in its draft budget for the 2025/2026 financial year. This move comes despite earlier suggestions from the political administration that the initial additional charge would be reviewed and potentially scrapped. 
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Background: Introduction of the R200 Surcharge
In July 2024, the City introduced a R200 monthly surcharge for prepaid electricity users, comprising a R70 service charge and a R130 network capacity charge. This fee was implemented to address the disparity between prepaid and post-paid customers, as prepaid users had previously been exempt from such charges. City Power justified the surcharge by citing the need to cover the costs of maintaining and upgrading the electricity infrastructure.  
The introduction of the surcharge led to widespread public outcry, with residents and civil society organizations expressing concerns about the financial burden on low-income households. Critics argued that the fee was implemented without adequate public consultation and disproportionately affected vulnerable communities. 
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Proposed Increase to R270
According to the City’s draft budget for 2025/2026, the proposed increase would raise the network capacity charge from R130 to R200, while keeping the service charge at R70. This adjustment would result in a total monthly surcharge of R270 for prepaid electricity users.
The budget notes that, despite the existing surcharge, prepaid customers are still heavily subsidized by other customer categories, such as post-paid users. The City argues that tariffs for prepaid customers must be substantially increased over the next three to five years to achieve parity between the cost of supply and the sale of electricity.
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Public Response and Political Reactions
The proposed increase has reignited public debate, with many residents expressing frustration over the escalating cost of electricity. Civil society organizations, including the Organisation Undoing Tax Abuse (OUTA), have called for the surcharge to be scrapped, labeling it as an unreasonable expense for low-income households. 
In response to the backlash, Johannesburg Mayor Dada Morero confirmed in March 2025 that the R200 monthly electricity charge for prepaid customers would not be increased. He emphasized that any changes to the surcharge would undergo a public participation process before final decisions are made.  
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Financial Implications for the City
The City of Johannesburg’s electricity revenue increased by R1.3 billion in the current financial year, with the R200 surcharge being a contributing factor. The additional revenue has been attributed to enhanced collection initiatives and a reduction in load shedding. 
City Power has warned that scrapping the surcharge would negatively impact its ability to supply power to residents, as the revenue is essential for maintaining the city’s electricity infrastructure. The utility argues that continued investment in infrastructure is necessary to prevent future service disruptions. 
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Next Steps and Public Participation
The City has initiated a public participation process to gather feedback on the proposed tariff increases, including the prepaid electricity surcharge. Residents are encouraged to attend public meetings and submit their comments before the final budget is approved. 
The outcome of this process will determine whether the proposed increase to R270 will be implemented or if alternative measures will be considered to address the City’s financial needs while minimizing the burden on residents.
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