Years of underinvestment in municipal distribution infrastructure has made large tariff adjustments critical for many municipalities.
The City of Johannesburg’s R200 prepaid electricity surcharge implemented on 1 July 2024 is critical to its 2023/24 financial year budget.
According to electricity and energy minister Kgosientsho Ramokgopa, municipalities are forced to raise tariffs to replenish and maintain the infrastructure. “Then we are seeing a spike in municipal tariffs that is making electricity unaffordable, resulting in conditions of what I refer to as energy poverty,” added Ramokgopa.
He added that the decision went through an extensive public participation process and that the metro engaged with communities to create awareness. “So, Johannesburg, we stopped it in 2018 as we felt that there wasn’t sufficient public participation at that point.” “We’ll look into a number of factors. Look at the affordability in terms of the city and to what level we are able to carry this thing,” he added.
City Power Dada Morero Headline Kabelo Gwamanda Prepaid Electricity Energy
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