A review of options could take months as insiders say it will impact an already strained budget.

A punishing power tax knee-capping Johannesburg's poorest residents will not be scrapped, finance MMC Dada Morero has told Daily Maverick.

Instead, a review process for the R230-a-month local tax on prepaid electricity customers will only be tabled at the end of July and could take months to finalise.

"The review does not mean scrapping but to allow us to look at options which will be favourable to customers," Morero said. Asked what the options were, he said he did not know but that discussions would start in the mayoral committee at the end of July.

Last week, Morero said "we are willing to enter a process to look at this availability charge and its impact on residents, and undergo a process to review this amount", as Nonkululeko Njilo reported here.

But council insiders said scrapping the power tax is not an option because the City's strained budget would take a knock.

Johannesburg is substantially funded by electricity sales, and the City is in the red. The Organisation Undoing Tax Abuse says its debt levels are at R49.65-billion, with electricity debt alone at R7.65-billion.

The City has a...