The R200 electricity service charge that became effective on Monday, July 1st, applies to City Power's 250,000 prepaid customers. This was confirmed by the Johannesburg power supplier, which also clarified that the service fee will apply to middle- and high-income earners.

City Power's General Manager for Pricing, Frank Hinda, has elaborated that post-paid customer, who receive monthly bills, are already subject to service fees. "Post-paid customers are paying more than R200 a month on basic service charges. They are paying significantly higher amounts for basic charges, equivalent to around R900. That is mainly based on the cost of supply studies that we have done and on the nature of the operation,' Hinda said. He added that the compulsory fee for service and network capacity will be deducted from the customers' purchase of electricity.

Hinda further said that if the monthly fee remains unpaid, the debt will be carried over to the following month. City Power's spokesperson, Isaac Mangena, mentioned that customers with prepaid meters are currently on the most cost-effective tariff plan, which does not include a basic charge. "However, if a customer purchases electricity for less than R400 at the start of the month, the payment will be divided to cover the fixed charge and electricity consumption charges, ensuring that the customer receives some kWh with each purchase until reaching the minimum purchase threshold of R400. It will not be possible to accumulate non-payment of the total basic charge beyond one month," Mangena stated. 

The National Energy Regulator of South Africa (Nersa) has approved City Power's application for a 12.7% tariff increase, which became effective on Monday. City Power said the increases are based on a cost-of-supply study and consultations with city officials. Mangena has encouraged residents who are low-income earners to register as indigent customers. "City Power encourages customers who earn less than R6,000 monthly or have financial challenges to approach their nearest service delivery centre to make arrangements and register for the Expanded Social Package. Qualifying citizens in the city have access to free basic electricity,' Mangena said.