By Phenyo Selinda
Johannesburg – In response to growing public concern, Executive Mayor of Johannesburg, Clr. Kabelo Gwamanda, has addressed the city on the controversial new R200 monthly surcharge for prepaid electricity customers. The surcharge, effective as of Monday, aims to create equity in the city’s electricity tariff system.
Background and Justification
Mayor Gwamanda emphasized that the surcharge results from Council resolutions dating back to 2018. The primary objective is to generate revenue for new electricity infrastructure investments and maintain existing systems. Initially delayed due to the economic impact of COVID-19, the surcharge now aims to eliminate the unfair subsidization of prepaid customers by post-paid customers.
“The new electricity surcharge is a necessary intervention to create fairness and equality in the City’s tariffs regime. Post-paid customers have been paying the surcharge, and only prepaid customers were excluded,” Gwamanda explained. “Introducing the surcharge now ends the unfair subsidization of prepaid customers by post-paid customers.”
Consultation and Legal Compliance
The City conducted a comprehensive Integrated Development Plan (IDP) consultative process, engaging with residents and their representatives across all wards. Despite opposition, the City remains committed to using tariffs effectively to maintain and expand infrastructure to meet Johannesburg’s growing population and economic needs.
Political Opposition and Allegations
The Mayor criticised the Democratic Alliance (DA) for allegedly sensationalizing the issue for political gain. He pointed out that similar surcharges are already in place in DA-run municipalities like Cape Town and Tshwane.
“The DA and its allies are attempting to subvert Council decisions by arousing public sentiment under false pretences. They aim to collapse the City’s infrastructure and maintain an unjust two-tier tariff system,” Gwamanda stated.
City Power’s Implementation
City Power, the utility responsible for implementing the surcharge, clarified that the new fee applies only to its 250,000 prepaid customers. Post-paid customers, who already pay substantial service fees, will not be affected by this change. According to Frank Hinda, City Power’s general manager for pricing and tariffs, post-paid customers are already paying around R900 monthly in basic service charges.
Opposition and Criticism
The DA has urged the City Council and City Power to reconsider the surcharge, condemning it as unjust and unfair. They argue that it disproportionately affects residents, reducing the value of their electricity purchases. DA Joburg Councillor Nicole Van Dyk highlighted the financial burden on residents, who are already facing increased costs for power, water, and refuse services.
“City Power is currently dealing with a R40 billion overdraft due to non-payers. Prepaid is a great incentive to get money upfront, but now you’re penalizing those who pay upfront,” Van Dyk argued.
ActionSA’s Stance
ActionSA Joburg caucus leader Nobuhle Mthembu vowed to challenge the surcharge at the next council meeting. Mthembu called for a more aggressive approach to recovering revenue from defaulting residents and provincial departments that have historically failed to pay their dues. She also advocated for disconnecting hijacked buildings from the City Power grid.
“ActionSA will return to the next council sitting to rescind this decision and explore other revenue collection methods,” Mthembu said. She urged residents to continue voicing their concerns until they are heard.
Conclusion
Mayor Gwamanda concluded by urging residents to understand the necessity of the new tariff regime and assured them of the City’s commitment to educating the public on its implementation. “As a caring government, we appreciate the economic challenges residents face. However, we must act responsibly to enforce equality and protect the future sustainability of the City’s infrastructure,” he stated.
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