- City Power will implement a 12.72% tariff hike, reflecting increased costs and economic conditions.
- Over three years, prepaid customers will be charged a R200 basic charge, with indigent customers seeing limited increases.
- City Power urges those under R6,000 monthly to register for the Expanded Social Package for free basic electricity.
City Power will enforce a 12.72% tariff hike on July 1, following the approval of the National Energy Regulator of South Africa (NERSA). The increase reflects a supply cost study and NERSA’s regulatory methods.
Isaac Mangena, City Power spokesperson, stated that rising costs and economic conditions influenced the new tariffs. “Industry inflation, operational costs, and our cost structure determine our tariffs,” said Mangena. The city’s application to NERSA considered the rising living costs impacting residents.
Not all customers will experience the 12.72% average increase uniformly. Some will see slightly lower increases, while others may face higher rates due to the cost of supply study findings.
City Power will introduce a basic charge of R200 for prepaid customers over the next three years. This charge ensures fair contributions to service costs. Indigent customers using 374 kWh per month will face a 6.21% increase, increasing their monthly bill from R791.57 to R840.74 by R49.17.
City Power plans to shield vulnerable customers from service and capacity fees. Prepaid users consuming 800 kWh monthly will pay R443.81 more, increasing their total charge from R1,916.76 to R2,360.57.
City Power will continue protecting indigent customers. Only registered indigent customers can access the low-income prepaid tariff. Mangena urged residents earning less than R6,000 monthly or facing financial challenges to register for the Expanded Social Package. Qualified residents can access basic electricity for free through this program.
City Power consulted extensively with residents and stakeholders during the Integrated Development Plan process. The company’s approach balances operational costs with its commitment to considering economic impacts.