Joburg Mayor Kabelo Gwamanda revealed that the recently implemented electricity charge for prepaid users is the result of numerous council votes from 2018.
This follows a public outcry after a recent electricity price increase by City Power. And there were questions about public participation before the council made the decision. The matter could also end up in court after the Organisation Undoing Tax Abuse (Outa) announced on Thursday that it was investigating it.
“OUTA and our JoburgCAN division are investigating ways to get this scrapped. This will have serious financial repercussions on our communities. Especially the poorest + most vulnerable. Joburg must scrap new R200 prepaid electricity fixed charge!” wrote Outa’s chief executive Wayne Duvenage on his X account.
Mayor responds to citizens and Outa’s outcry
Gwamanda responded by releasing a statement on Thursday. In it he urged Johannesburg residents to have trust in the city’s commitment to establishing equity and transparency. Especially in the system of City Power rates.
Gwamanda explained the higher electricity rates. He said they are meant to generate enough funds for the City to invest in new electrical infrastructure. To also maintain the upkeep of already-existing infrastructure.
He went on to say after the fee was approved, the nation was hit by the Covid-19 pandemic. As a result, the city decided to delay the surcharge’s implementation until 2019/2020. This was because of the unexpected financial burden the virus placed on the residents.
“The new electricity surcharge is a necessary intervention to create fairness and equality in the city’s tariff regime. Post-paid customers have been paying the surcharge and only pre-paid customers were excluded. …The introduction of the surcharge now seeks to end the unfair subsidisation of prepaid customers by post-paid customers,” said Gwamanda.
Consultative process carried out
He said the city went through a consultative process in all wards in the city. It also consulted with residents and their representatives comprehensively. This was prior to the approval of the new tariff by council.
“There has been some opposition to the surcharge. However, as a responsible government, the city must ensure it optimally uses tariffs to maintain the system. To also increase its capacity to meet the growing population and increasing economic needs.”
According to Gwamanda, the Democratic Alliance (DA) and its stooges are opportunistically sensationalising the matter.
Blames DA for double standards
“They are attempting to subvert council decisions by arousing public sentiment under false pretences to gain political mileage. The surcharge being introduced in Johannesburg is currently being implemented across DA-run councils across the country. This is including in Cape Town and Tshwane,” he said.
“Any attempt to sabotage this critical intervention is an attempt to deliberately collapse the city’s infrastructure. [It is to also] maintain the injustice of creating a two-tier tariff dispensation. This is where post-paid customers pay and pre-paid customers don’t. The split between post-paid and pre-paid customers in the city is approximately 50:50. As such, we cannot, with good conscience, disadvantage one customer base in the interests of the other.”
Additionally, he said the new tariffs are not going to change. However, the residents need to familiarise themselves with the new tariff regime.
“As a caring government, we appreciate the economic challenges that confront residents and the anxiety any new tariff brings. However, [this is] in the best interests of the city,” said Gwamanda.
