In recent weeks, Johannesburg residents have been up in arms over rumors of a steep hike in the prepaid electricity surcharge, with reports suggesting an increase from R200 to R270 per month.
The proposed change, outlined in the City of Johannesburg’s draft budget for the 2025/2026 financial year, sparked outrage among residents already grappling with the rising cost of living.
However, the City has now stepped in to set the record straight, clarifying that no such increase will take effect.
In a statement that has brought relief to many, the City confirmed that the prepaid electricity surcharge will remain at R200 plus VAT.
Here’s a closer look at the developments, the public’s reaction, and what this means for Joburg residents.
The Johannesburg Spark of Controversy
The confusion began when the City of Johannesburg proposed a potential increase in the prepaid electricity surcharge as part of its draft budget discussions for the upcoming financial year.
According to posts on X, the City was considering raising the monthly surcharge from R200 to R270, a move that would have added further strain to households already navigating economic challenges.
The surcharge, which applies to prepaid electricity users, is intended to cover infrastructure maintenance and service delivery costs for City Power, the municipal entity responsible for electricity distribution in Johannesburg.
The news of the proposed hike quickly gained traction, with residents expressing their frustration on social media and in community forums.
Many argued that the increase was tone-deaf, given the financial pressures faced by ordinary South Africans.
Political parties and civil society groups also weighed in, slamming the City for what they described as an unfair burden on residents.
The backlash was swift, with some accusing the municipality of prioritizing revenue over the welfare of its citizens.
Adding fuel to the fire, Johannesburg’s recent history of service delivery challenges, ranging from water shortages to power outages caused by storms and cable theft, made the prospect of additional costs even less palatable.
For many, the proposed surcharge hike was seen as yet another example of the City’s disconnect from the struggles of its residents.
Johannesburg’s Response: No Increase After All
On May 6, 2025, the City of Johannesburg moved to quell the growing discontent by issuing a clear and concise statement: there will be no increase in the prepaid electricity surcharge.
The City confirmed that the surcharge will remain at R200 plus VAT, putting an end to the speculation and confusion that had gripped the city.
The announcement was shared by eNCA, which reported that Joburg Finance MMC Margaret Arnolds was set to appear on South African Morning to provide further clarity on the matter.
The City’s decision to maintain the current surcharge rate is a significant win for residents, who have been vocal about their inability to absorb additional costs.
It also reflects the power of public pressure, as the outcry from communities, political groups, and civic organizations likely played a role in prompting the City to reconsider its plans.
While the municipality has not provided detailed reasons for abandoning the proposed increase, it’s clear that the backlash was too significant to ignore.
Why the Surcharge Matters
For those unfamiliar with the prepaid electricity surcharge, it’s worth breaking down its purpose and impact.
The surcharge is a fixed monthly fee charged to prepaid electricity users in Johannesburg, separate from the cost of the electricity units they purchase.
According to City Power, the funds collected through the surcharge are used to maintain and upgrade the city’s electricity infrastructure, ensuring a reliable power supply.
This includes repairing damage from storms, addressing cable theft (a persistent issue in Joburg), and investing in long-term grid improvements.
However, the surcharge has long been a point of contention.
Critics argue that it disproportionately affects low- and middle-income households, who rely on prepaid meters to manage their electricity usage.
Unlike postpaid customers, who may face different billing structures, prepaid users are hit with the surcharge regardless of how much electricity they consume.
For many, the R200 fee already feels like a significant burden, and the prospect of it rising to R270 was simply unacceptable.
Trust and Transparency
The surcharge saga highlights a deeper issue in Johannesburg: a lack of trust between the City and its residents.
Over the past year, Joburg has faced a litany of challenges, from water shortages and flooding to power outages and infrastructure decay.
News reports have chronicled these struggles, with eNCA noting in December 2024 that some suburbs were left without water for weeks due to maintenance delays.
Similarly, City Power has repeatedly urged residents to use electricity sparingly, citing pressure on the system from storms and vandalism.
Against this backdrop, any proposal to increase costs, whether for electricity, water, or rates, is likely to be met with skepticism.
Residents feel that they are being asked to pay more for services that are often unreliable.
The City’s initial failure to clearly communicate its intentions regarding the surcharge only deepened this mistrust, as rumors and misinformation spread rapidly.
The clarification on the surcharge is a step in the right direction, but it also underscores the need for better engagement with the public.
Transparent communication, especially during budget discussions, could prevent similar controversies in the future.
Residents deserve to know how their money is being spent and why certain fees are necessary, particularly when service delivery remains inconsistent.
What’s Next for Joburg Residents?
For now, Johannesburg’s prepaid electricity users can breathe a sigh of relief knowing that their monthly surcharge will not increase.
However, the broader challenges facing the city are far from resolved.
The 2025/2026 budget discussions are ongoing, and other proposed rate hikes, such as those for property rates and water could still cause debate.
As reported by eNCA on April 12, 2025, political parties and civil society groups have already criticized the City’s planned rate increases for 2025 and 2026, warning that they will force residents to “dig deeper” into their pockets.
Meanwhile, City Power continues to grapple with infrastructure issues.
Cable theft, flooding, and aging equipment have all contributed to power outages in recent months, with News24 reporting in March 2025 that the utility was overwhelmed by over 5,000 outage-related queries following heavy rains.
These challenges highlight the delicate balancing act the City faces: maintaining and upgrading infrastructure while keeping costs manageable for residents.
A Call for Collaboration
The surcharge controversy is a reminder that Johannesburg’s challenges require collaboration between the City, residents, and civic organizations.
Groups like the Joburg Crisis Alliance, which brought residents together in January 2025 to demand clean governance and transparency, are playing a vital role in holding the municipality accountable.
Similarly, initiatives like Jozi My Jozi, which focuses on revitalizing the inner city, show that community-driven efforts can complement government action.
For its part, the City must prioritize rebuilding trust with its residents.
This means not only delivering reliable services but also engaging in open dialogue about financial decisions.
The decision to maintain the prepaid electricity surcharge at R200 plus VAT is a positive step, but it’s just one piece of a much larger puzzle.
Conclusion
The City of Johannesburg’s clarification on the prepaid electricity surcharge has put an end to weeks of confusion and frustration.
By confirming that the surcharge will remain at R200 plus VAT, the City has responded to the concerns of its residents and averted a potential crisis.
However, the incident serves as a wake-up call for better communication and transparency in the future.
As Johannesburg navigates its financial and infrastructural challenges, the voices of its residents must remain at the forefront.
The surcharge debate may be settled for now, but the broader fight for affordable, reliable services continues.
For Joburgers, the hope is that the City will listen, act, and deliver on its promises, because in a city as vibrant and resilient as Johannesburg, nothing less will do.
