MMC for Finance in Johannesburg, Dada Morero, says they’ve decided to review the R200 electricity surcharge, which has sparked public outcry.
Residents have taken to social media over the past few weeks, lamenting their already dire economic conditions after City Power introduced the fee for prepaid customers.
Authorities say the R200 charge is meant for services and network capacity.
Registered indigent customers have already been exempted from the surcharge.
The MMC’s announcement comes despite Mayor Kabelo Gwamanda’s insistence that the new monthly fee is not going anywhere.
The surcharge is said to have been one of various council resolutions made in 2018. Its implementation was apparently affected by the COVID-19 pandemic.
Morero has made it clear that the charge is necessary, and a review could lead to a possible reduction and not completely scrapping the fee.
“We are not pulling the plug; it is an important fixed cost or availability cost that we need to collect from prepaid customers so that it helps us to continue to maintain existing infrastructure cost and investment into new infrastructure.”
The MMC says they will have to take into account all factors including cost implications when taking the decision on review.
He says Johannesburg is one of the metros with the lowest surcharge, saying some go up R300.
“The municipality has been battling with the maintenance of their revenue as a result of customers migrating from the grid, going off the grid which has affected our revenue assumptions. In the main, we thought R200 was very reasonable considering that those on the indigent register are exempted from paying the surcharge,” the MMC says.
Morero has also highlighted that conventional customers are already paying higher than pre-paid customers and the city is struggling to strike a balance.
Political commentator, Lukhona Mnguni, is among the Joburg residents who expressed great dissatisfaction against the levy.
Mnguni penned an open letter to Gwamanda, saying ‘Nisiqhela Kakubi.’
Written by: Lindiwe Mpanza
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