City Power backtracks on shock prepaid charge (again)
The City of Johannesburg has backtracked on a contentious R200 per month capacity charge for all residential prepaid electricity customers from July 1.
It has also dropped plans to implement an R402 a month capacity charge for business prepaid electricity customers.
These changes come as the city finally managed to pass its budget on Thursday, just one day before the deadline given to it by the Gauteng government.
This is the second year that the city has made a U-turn on these City Power tariffs. Last year, however, the tariffs had already been approved by council and were then quietly dropped in July within a week (City of Joburg quietly reverses new prepaid surcharge) following a fierce outcry from ratepayers.
Had the R200 monthly charge been implemented, the effective rate paid for electricity by prepaid customers would’ve soared by close to 50%, depending on usage.
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