South Africa: Impoverished Joburgers Buckle Under New Monthly R200 Prepaid Meter Fixed Electricity Surcharge

analysis

The cost of prepaid electricity is becoming a heavy burden for Johannesburg residents after the introduction of the R200 monthly fixed charge that will go towards maintaining electricity infrastructure.

Listen to this article 14 min Listen to this article 14 min It has been a week since the implementation of a R200 monthly fixed charge by City Power, and poorer residents are already feeling it hit their pockets. Now the move faces not only pushback, but also possible litigation.

The move came into effect on 1 July, along with the 12.7% electricity hike that has left many residents in a tight financial position. Both the hike and surcharge were approved by the National Energy Regulator of South Africa (Nersa) following City Power's application.

The fixed rate is intended to provide revenue to fund Johannesburg's investment into new electricity infrastructure and the maintenance of existing infrastructure. Before 1 July, prepaid residential customers did not contribute to these costs, only post-paid customers.

While R200 may seem a small sum to middle- or high-income earners, for millions of Joburg's poor and unemployed residents it means going a week without a meal.

This is the case for mother of two, Witney Phiri of Pimville, Soweto, who survives on R1,060 a month in child social grants - almost half of it goes towards buying electricity.

In an average month, Phiri spent R450 on electricity,...

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