Tariff shock as City Power implements R200 prepaid charge

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Tariff shock as City Power implements R200 prepaid charge
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Typical customers will pay 19% more – not 12.7%!

After numerous attempts to implement fixed charges to cover the cost of distributing electricity to prepaid customers, the City of Johannesburg’s City Power has begun charging these customers a total of R200, excluding value-added tax per month , effective 1 July.No electricity tariff increase for most municipalities on 1 JulyUntil now, the city has not recovered most of the underlying costs of providing the network to its 250 000 prepaid residential customers.

In effect, it is subsidising its prepaid customers and servicing them below what it costs to actually supply the power . In an attempt to shield lower-income households from this charge, it has split prepaid customers into two categories: prepaid and prepaid . The prepaid category is not yet subjected to any fixed charges.

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