CoJ to review R200 surcharge on prepaid electricity for indigent residents
The City of Johannesburg (CoJ) will review the R200 surcharge on prepaid electricity meters in response to concerns raised by residents and various stakeholders, says Finance MMC Dada Morero.
However, infrastructure maintenance, upgrades and services, including the cost of supply studies done by utility City Power, are important and there needs to be a balancing act between those who can afford to pay for electricity and those who are struggling to pay, he says.
“Our objective is not to overburden residents and businesses of Johannesburg, but to ensure a financially viable city that is well maintained and well run for the benefit of more than six-million residents of Johannesburg.”
The city’s R200 electricity availability charge is a fixed charge that is levied to ensure revenue availability for sustained service delivery, infrastructure maintenance and upgrades to supply electricity to residents, he explains.
CoJ is reviewing the charge in terms of its affordability to the residents, but remains committed to infrastructure maintenance, which is urgently needed, Morero adds.
The additional R200 charge will be reviewed in consultation with CoJ's executive committee, City Power, the National Energy Regulator of South Africa and State-owned Eskom.
A municipality can only adjust its budget once in a financial year after reviewing the mid-year performance. The National Treasury will also be engaged as part of the review of the charge to ensure that it is changed during the adjustment budget, he says.
“We call on ratepayers to continue paying their municipal accounts every month.
“However, the comment by the Energy and Electricity Minister that the affordability of electricity should be investigated because electricity generation and distribution costs require a multifaceted approach by all spheres of government is encouraging,” Morero adds.
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