We looked at three domestic electricity tariffs: the two new prepaid tariffs and the conventional (postpaid) single phase 60A tariff. We calculated a total bill for different levels of usage. If you want to see how we calculated this, our spreadsheet is here.
The City is retaining these fixed charges. Postpaid customers pose a risk to the city because they are in essence given a service and then pay, so consumption and payment can be erratic. In order to make sure that these customers have their meters read, will have available electricity if and when they need it, and to service the mechanism that bill them, there are fees. However, JoburgCAN is calling on the City, the bulk supplier Eskom and Nersa to do proper cost-of-service analysis and ensure all of the expenses they incur to deliver electricity are reflected in the base tariff, relate generally to the use of the service and are not added in as unregulated service charges. We note that the City has increased the fixed monthly charge on postpaid domestic electricity by 30% in two years, which we regard as unreasonable.
Every year the City publishes a draft Integrated Development Plan (IDP) for projects they are embarking on, and a draft budget to allocate funds and update tariffs it will charge its residents or customers. This is tabled in council and then presented to the public in regional meetings. The public has an opportunity to send in submissions and to raise issues with the IDP and budget. In 2024 the IDP/Budget was tabled in April and regional meetings were concluded before the deadline for submissions on 22 April. This was debated in council in May and approved at a second meeting on 22 May. The prepaid charge was included in the draft budget. However, JoburgCAN attended the regional meetings and found that the this new charge was not mentioned in the City’s presentations. JoburgCAN made a written submission to the City on the draft budget, which included protesting against the new prepaid charge. in the final budget, the City lowered the proposed charge from R553.73 to R230 incl VAT after public participation, but did not scrap the fee and did not re-engage the public on the changes.
City Power has indicated that any sale of less than R400 will pay a portion of the service charge and receive some units. Any amount over R400 will deduct the full service charge and the remainder will be allocated electricity units. JoburgCAN has asked City Power and the City of Joburg for a copy of this policy and for the exact allocations including VAT, but there has been no response or clarity yet.
The charge applies regardless of consumption, according to City Power. If you do not spend enough to cover the service charge in a calendar month, the cost will roll over and be deducted before any units can be bought in the following months. JoburgCAN has asked to see this policy in writing from City Power and the City of Joburg and received no response yet.
Users on the City of Joburg indigent register do not have to pay the fee. For information on whether you qualify and to apply see here.