City Power clears the air on R200 service charge on prepaid meters

Johannesburg residents aren’t too happy with City Power following its newly implemented fixed prepaid charge on electricity.

In addition to the 12.7% tariff increase, from 1 July residents who use prepaid meters incurred a monthly fee of R200 – R70 for service charges and R130 for network capacity charges. 

It applies to middle and high-income earners (combined income of over R6 000).

Social media was a buzz on Monday with users sharing just how little units they received when purchasing prepaid electricity for the new month.

Speaking to Anele and The Club on 947, City Power General Manager, Frank Hinda explained why the R200 would be deducted when customers purchase electricity.

Listen below.

If you purchase R500 electricity, R200 will go towards the fixed fee and R300 will go towards purchasing electricity units.

In the event you decide to buy R200 electricity, City Power won't take it all at once and leave you without units but will take R100 then take the remaining amount from the next purchase. 

Hinda says this fee ultimately levels the field for prepaid and conventional meter customers. 

“[Prepaid] is the most favourable and therefore, the most subsidised tariff… We have tried to introduce the prepaid tariff over the last few years.”

Frank Hinda, General Manager - City Power 

Indigent people have to register with City Power and produce proof of payment to be exempt from the charge.

Scroll up to the audio player to listen to the discussion