City Power has since responded to customers’ complaints and explained the reason behind the apparent overcharges when buying prepaid electricity.
The power utility gave clarity to the City’s residents who had the new KRN2 prepaid meters installed in a statement issued on 20 January 2025. Here’s what the statement said.
OVERCHARGES WHEN BUYING PREPAID ELECTRICITY
City Power started out by saying residents were not being overcharged, but that these were deductions, which they called surcharges. These are said to be “backdated service charges.” They have accrued since the new tariffs were introduced in May 2024. The charges themselves were implemented from July 2024 to December 2024.
MOST CUSTOMERS OWE R1 200
City Power further explained that most of their customers actually owe a total of R1 200 in backdated charges. It clarified that this is specifically for those with the new prepaid meters.
“For customers who received new meters, the City Power system reconciles the meter data for each and automatically calculates the outstanding charges from the past six months. For most residential customers, this amounts to a total of R 1200 (excluding VAT) for the period between July and December 2024,” it elaborated.
It further explained how these charges are automatically deducted during each electricity purchase. The system decides the amount that will be paid towards the charges and the actual units.
“For example, if a customer buys R100 worth of electricity, the system will allocate not more than R50 depending on the debt towards settling the outstanding service charges. The remaining amount will be converted into electricity units. This deduction process will continue with every purchase until the full R 1200 (excluding VAT) has been recovered,” it stated.
MONTHLY SERVICE CHARGE APPLIES AFTER BACKDATED SURCHARGES FULLY PAID
According the power utility, there will be ongoing monthly charges that will be required. Customers will then have to pay this monthly service charge when buying prepaid electricity. They were also told to make electricity purchases consistently.
“Once the backdated service charges are fully paid, the customer will then be liable for the ongoing monthly service charge of R200 (excluding VAT). This R200 charge has been added to accounts since the service charge’s implementation in July 2024 and will continue to accrue every month going forward.”
Business prepaid customers will have to pay R1500 per month in service charges. So when these customers buy electricity tokens less than R1 500 “no electricity tokens will be issued until the basic service charge is paid in full.”
STRUGGLING CUSTOMERS CAN APPLY FOR ASSISTANCE
The City said it’s offering help to prepaid electricity meter customers who are struggling to pay the service charges.
It said: “City Power encourages those in need to apply for the Expanded Social Package (ESP). This program provides free electricity allocations and offers reduced service charges for qualifying customers. The ESP is available to assist vulnerable customers in managing their electricity costs.”
HAVE YOU ALSO BEEN AFFECTED BY THESE PREPAID ELECTRICITY SURCHARGES?
Let us know by clicking on the comment tab below this article. Or emailing info@thesouthafrican.com or sending a WhatsApp to 060 011 021 1.
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