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Scrapped electricity fee was planned to bridge pricing gap: City Power | Herald LIVE

The fixed surcharge on prepaid electricity which the City of Johannesburg scrapped on Tuesday was supposed to bring an equilibrium between prepaid and conventional tariffs.

That is what City Power spokesperson Isaac Mangena said in a statement on Tuesday.

“The gap between prepaid tariff and conventional tariff is caused by basic charges levied on conventional customers over and above electricity tariff,” Mangena said.

“The residential prepaid customers do not contribute towards these costs. As a result, the residential prepaid customer does not adequately contribute to operational, maintenance and refurbishment costs of the electricity infrastructure to ensure continued availability of electricity supply on demand.”

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Scrapped electricity fee was planned to bridge pricing gap: City Power.

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