Major structural changes in prepaid meter electricity tariffs and tariff rates have been approved by the council of the Johannesburg Metropolitan Municipality and submitted to Nersa for approval for implementation from 1 July.

The vast majority of indigent households served by City Power, the municipal electricity distributor for the City of Johannesburg, are in for a nasty surprise, with massive cost increases from 1 July -- if the National Energy Regulator of South Africa (Nersa) approves the new electricity prices applied for by City Power.

On average, indigent households -- the poorest of the poor in Johannesburg -- use about 200kWh of electricity per month, and with effect from 1 July, such households face an increase of about 60% for this very low amount of electricity. Poor households using 300kWh of electricity per month face an increase of 45%.

This is a result of major structural changes in prepaid meter electricity tariffs and tariff rates approved by the council of the Johannesburg Metropolitan Municipality and submitted to Nersa for approval for implementation from 1 July.

In particular, for its residential prepaid high tariff (which applies to the vast majority of indigent customers with prepaid electricity meters), in addition to price increases on its variable energy tariff rates of some 12.5% for the 2024/25 financial year, City Power has applied for an additional R230 fixed cost per month.

City Power's prepaid meter tariffs and...