Trystan Casey
Johannesburg residents have been facing frequent power outages, load-shedding, and uncollected waste, along with rising electricity costs. The City of Johannesburg proposed a R230 monthly electricity surcharge for prepaid users, which was met with backlash due to the economic conditions making it unaffordable for residents. The proposal was dropped, but electricity tariff increases are still expected. The City Power tariff and Draft Property Rates reports for 2025/2026 have been withdrawn, and new proposals are being developed. The previous R200 service and capacity charge for prepaid electricity bills also sparked widespread criticism, and the city is now reconsidering these charges. Understanding tariff structures and tracking usage can help residents manage their electricity consumption and expenses.
| Characteristics | Values |
|---|---|
| Electricity Costs | Climbing |
| Average Usage | 900kWh/month |
| Tariff Increase | 12.74% |
| Prepaid Charges | R200 service and capacity charge |
| Prepaid Users | Split into 'high' and 'low' users |
| High Users | All other prepaid users |
| Low Users | Indigent households, exempt from charges |
| Monthly Surcharge | R230 for prepaid users |
| Business Surcharge | R460 proposed for prepaid businesses |
| Property Rate Increase | 4.6% |
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What You'll Learn
- Johannesburg electricity costs are climbing
- The City of Johannesburg withdraws the monthly electricity surcharge
- Johannesburg households are burning through more kilowatt-hours than they realise
- The City Power tariff and Draft Property Rates reports are withdrawn
- The City Power tariff and Draft Property Rates reports will be replaced with new proposals
Johannesburg electricity costs are climbing
Johannesburg residents are facing climbing electricity costs. In 2025, most households are consuming more kilowatt-hours than they realise, often hitting the highest-price bracket without knowing it. A typical household uses 900kWh/month, putting it in the top billing tier. Beyond 500kWh, City Power charges up to R3.2261/kWh.
In 2024, City Power, the municipal electricity distributor for Johannesburg, owned by the City of Johannesburg, increased electricity prices for poor and indigent customers by 6 to 12 times the inflation rate. The Residential Prepaid High tariff applies to the majority of poor and indigent households, and in 2024, prices increased by 60% to 76% for those consuming 200kWh per month.
In 2025, the national average increase was 12.74%, with changes aimed at simplifying costs for smaller users. However, the City of Johannesburg's tariff increases are currently proposed at 14.59% across the board.
The City of Johannesburg uses a block tariff system, meaning customers pay more per unit the more they consume. This has resulted in backlash from households, with DA councillor Chris Santana stating that the increases are "tone-deaf and unjustified". In response, the Executive Mayor of the City of Johannesburg, Dada Morero, announced that the city would withdraw the 2025/2026 budget and put forward new proposals. Under these new proposals, the service charge for prepaid electricity users will remain unchanged at R200 a month before VAT.
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The City of Johannesburg withdraws the monthly electricity surcharge
In May 2021, the City of Johannesburg withdrew its proposal to add a monthly surcharge for prepaid electricity users. The proposal, which was included in the city's draft budget for 2021/22, would have seen a fixed monthly service charge of R230 added to domestic prepaid electricity bills, with R460 added to the prepaid bills of businesses.
The city's Executive Mayor, Dada Morero, confirmed that the surcharge would not be included in the financial year's tariffs, following extensive discussion and analysis of comments received during the recent Integrated Development Plan consultation meetings. The decision was made after public consultation revealed that residents could not afford the charges due to the economic conditions in the country.
Critics of the proposal argued that it would have punished already overburdened households and businesses, with some claiming that it could even encourage people to break the law. Julie Smith, a researcher at the Economic Justice & Dignity Group, highlighted the essential nature of electricity, stating that any increase in charges would directly impact people's ability to afford food.
While the monthly surcharge has been withdrawn, the City of Johannesburg has stated that the final electricity tariff increases, currently proposed at 14.59% across the board, will still be considered and approved by the council towards the end of May 2021.
In 2025, the City of Johannesburg again faced criticism over electricity charges. The city's proposed increases were deemed unjustified by DA councillor Chris Santana, given the frequent water outages, load-shedding, uncollected waste, and unaffordable bills faced by residents. In response, the Executive Mayor, Dada Morero, announced that the city would withdraw the 2025/2026 budget and put forward new proposals, including maintaining the service charge for prepaid electricity at R200 a month before VAT.
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Johannesburg households are burning through more kilowatt-hours than they realise
Johannesburg residents have been facing steadily rising electricity costs, with many questioning the varying prices they have to pay. In 2025, most households are consuming more kilowatt-hours than they realise, often entering the highest-price bracket unknowingly. A typical household in the city uses 900kWh per month, placing it in the top billing tier.
The City of Johannesburg employs a block tariff system, meaning that the more electricity one consumes, the more they are charged per unit. The first 350 kWh are charged at a lower rate, usually around R2.22 per kWh. Usage between 351 and 500 kWh is charged at a higher rate of approximately R2.71 per kWh. Any consumption above 500 kWh attracts the highest rate of about R3.23 per kWh. Therefore, households that consume more than 500 kWh per month pay significantly more per unit of electricity.
In 2024, the city introduced a R200 service and capacity charge to prepaid electricity bills, categorising prepaid users into ''high' and 'low' users. 'Low' users represent indigent households, who are exempt from the charge. This move faced widespread public and political backlash, with residents claiming that the charges were unjustified given the frequent water outages, load-shedding, uncollected waste, and unaffordable bills based on estimated readings.
The City of Johannesburg has also proposed adding a fixed monthly service charge of R230 to domestic prepaid bills and R460 to the prepaid bills of businesses. However, due to public consultation, the city decided not to introduce this additional charge for the time being, recognising the economic conditions that would make it difficult for residents to afford these charges.
To manage electricity usage and costs, residents can use the free online Eskom Residential Calculator to track and understand their consumption better.
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The City Power tariff and Draft Property Rates reports are withdrawn
The City of Johannesburg has withdrawn its plans to increase electricity charges for prepaid users. The City Power tariff and Draft Property Rates reports have been recalled, and new proposals will be put forward. This decision was made by the Executive Mayor of the City of Joburg, Dada Morero, who considered the potential impact of the initial proposals on residents, especially concerning water and electricity charges.
The initial plans included a R70 hike in service charges for prepaid electricity, taking the monthly tax to R270. However, under the new proposal, these charges will remain at R200 a month (before VAT). The proposed 5.6% increase in property rates will be adjusted to 4.6%, and the rebate threshold will stay at R300,000. There will also be no increases to availability charges for both prepaid and conventional meters, which will remain at R200 and R930, respectively.
The City of Johannesburg's decision comes after widespread criticism of the proposed hikes. DA councillor Chris Santana called the proposals "tone-deaf and unjustified," arguing that they would cause financial distress for residents already facing challenges such as water outages, load-shedding, and high bills. Civil society groups, like Outa, also opposed the plans, especially since prepaid electricity is commonly used by lower-income households.
Despite the withdrawal of the City Power tariff and the lack of increase in availability charges, electricity costs in Johannesburg are still climbing. Residents are encouraged to understand how tariffs work and track their usage to manage their expenses effectively. The average household in Johannesburg consumes around 900kWh per month, which falls into the highest pricing bracket. Eskom has announced a 12.74% increase in tariffs for 2025/26, and City Power charges up to R3.2261/kWh for usage beyond 500kWh.
While the withdrawal of the tariff and the freeze on availability charges provide some relief for prepaid electricity users, it is important to note that residents will still be paying more for electricity as the city's tariffs align with Eskom's hikes. Understanding tariff structures and tracking usage can help households manage their electricity expenses effectively.
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The City Power tariff and Draft Property Rates reports will be replaced with new proposals
The City of Johannesburg has been facing challenges with its electricity supply and pricing, which has caused concern among residents. In May 2021, there was controversy over a proposed additional monthly electricity surcharge for prepaid users, which was ultimately not implemented due to public opposition. This surcharge would have been R230 for domestic prepaid bills and R460 for business prepaid bills. The City acknowledged the economic difficulties faced by residents and decided to forgo the charge.
Fast forward to 2025, and the City of Joburg is again facing criticism for its handling of electricity charges. The Executive Mayor, Dada Morero, announced that the 2025/2026 budget, the City Power tariff, and the Draft Property Rates reports would be withdrawn and new proposals introduced. This decision considered the potential impact on residents, especially regarding water and electricity charges.
Among the initial proposals was a R70 increase in service charges for prepaid electricity, raising the monthly tax to R270. However, under the new proposal presented by Mayor Morero, these charges will remain at R200 per month before VAT. Additionally, the proposed 5.6% increase in property rates will be adjusted to 4.6%, aligning with CPI. The rebate threshold will be maintained at R300,000, rejecting the idea of lowering it to R200,000. Furthermore, there will be no increases to availability charges for both prepaid and conventional meters, keeping them at R200 and R930, respectively.
The zero increase in availability charges for prepaid electricity is a relief for Joburg residents, who had been subjected to the tax since July 2024. The original R200 service and capacity charge introduced in 2024 faced widespread backlash, leading to the classification of prepaid users into 'high' and 'low' categories. While the new proposals aim to alleviate some of the financial burden on residents, it's important to note that electricity costs in Johannesburg are climbing. Residents are encouraged to understand tariff structures and track their usage to manage their expenses effectively.
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