CoJ’s R200 prepaid electricity surcharge extended for another financial year

JOHANNESBURG - There is no good news for prepaid electricity customers in Johannesburg, as the R200 surcharge has been extended for another financial year.

Finance MMC Margaret Arnolds confirmed during her budget speech on Wednesday that the surcharge was here to stay.

It was first implemented in July 2024, causing public outrage about soaring electricity prices.

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The City of Johannesburg expects to generate R25 billion in electricity revenue in the next financial year, which is a 12.5% increase from the current fiscal period.

A significant driver of this increase is the controversial R200 surcharge imposed on prepaid electricity users.

Although the surcharge adds to the financial burden on residents, Arnolds said that maintaining it at R200 was in the best interest of taxpayers.

"We refuse to allow economic pressure to push our people further into the margins. That is why we are holding the prepaid electricity surcharge unchanged at R200, excluding VAT - a deliberate act to protect the poor against rising energy costs.

"This budget makes it clear: we will not govern in a way that reproduces inequality. Our pro-poor programme is a political choice rooted in the values of equity, dignity, and redress. It is a signal that in the City of Johannesburg, no one will be left behind. Not on our watch."

She said that other metros in the country also imposed a similar electricity surcharge, and claimed that Johannesburg remained more affordable in comparison.