City Power: Understanding the new prepaid meter deductions and their implications for Johannesburg residents.
City Power Addresses Prepaid Meter Complaints
Johannesburg residents using newly installed prepaid electricity meters have expressed frustration over unexpected deductions during electricity purchases. However, City Power clarified on Monday that these deductions are not overcharges but rather backdated service fees that have accrued since July 2024.
The issue has particularly affected customers whose prepaid meters were installed during the KRN2 project rollout in November 2024. Complaints have surged as customers find significant portions of their electricity payments deducted without clear prior communication.
Understanding the Backdated Charges
City Power spokesperson Isaac Mangena explained that the deductions stem from a service charge introduced in July 2024, following new tariffs implemented in May 2024. For residential customers, the total backdated charges amount to approximately R1,200 (excluding VAT) for the period between July and December 2024.
The power utility’s automated system calculates these charges and reconciles the data with each property’s meter. Customers with new meters are experiencing deductions that recover the backdated charges in small portions with every electricity purchase.
“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, while the remaining amount will be converted into electricity units,” Mangena explained.
How Long Will the Deductions Last?
The recovery of backdated charges will continue until the full amount of R1,200 (excluding VAT) has been paid. Following this, customers will only be responsible for the monthly service charge of R200 (excluding VAT) moving forward.
Mangena emphasized that the R200 monthly fee has been accruing since July 2024 and will continue to be applied to accounts unless customers proactively keep up with their payments.
Relief Options for Struggling Consumers
City Power has encouraged customers struggling with service charge payments to apply for the Expanded Social Package (ESP). This program provides eligible residents with reduced service fees and free electricity allocations.
Business customers spending less than R1,500 on electricity will not receive electricity tokens until their service charges are fully settled. This ensures that City Power recovers the necessary fees before allocating additional units.
What Should Customers Do?
To avoid future accumulations of service charges, City Power advises customers to monitor their electricity purchases closely. The utility apologized for any inconvenience caused and assured residents of its commitment to resolving ongoing concerns.
“We regret any confusion or inconvenience this may have caused and appreciate your understanding as we address these matters,” Mangena concluded.
Also read: City Power Disconnects 120 Homes for Prepaid Meter Bypass, Issues R14,000 Fines
