Key Takeaways
- The African Democratic Christian Party (ACDP) has lost its bid to scrap the R200 electricity surcharge in the City of Johannesburg.
- The surcharge was introduced by City Power to maintain electricity infrastructure and ensure reliable service.
- Opposition parties and residents have petitioned to have the surcharge removed, citing financial pain and suffering.
- The MMC of Finance in the City of Johannesburg, Loyiso Masuku, says the surcharge is necessary for maintenance and upgrading of the City’s electricity network.
- The surcharge has been a raging debate among the council’s political parties, with some describing it as a tactic to campaign for the upcoming local government elections.
Introduction to the Debate
The collection of the R200 surcharge has been a highly debated topic among the council’s political parties in the City of Johannesburg. The African Democratic Christian Party (ACDP) recently lost its bid to have the surcharge scrapped, which was introduced by City Power in July last year to share the costs of maintaining electricity infrastructure with its customers. The surcharge, which includes VAT, totals R230 and is intended to ensure a fair distribution of upkeep costs and sustain reliable service amid challenges such as cable theft and illegal connections.
The ACDP’s Proposal
The ACDP’s Christian Rohlssen proposed a motion to have the surcharge removed in a recent council meeting, citing the immense financial pain and suffering it has caused residents who are already burdened by rising costs of living and escalating municipal tariffs. Rohlssen argued that the surcharge has exacerbated inequality, disproportionately affecting low-income working-class families who are forced to choose between basic needs such as food, transport, and electricity. He also stated that the surcharge has eroded residents’ trust in public governance and the commitment to pro-poor policies.
The City’s Response
However, the MMC of Finance in the City of Johannesburg, Loyiso Masuku, said the surcharge is necessary for the maintenance and upgrading of the City’s electricity network. Masuku pointed out that all metros across the country charge a similar network charge, and the R200 surcharge in the City of Johannesburg is actually the cheapest out of all the metros. She also stated that the tariff was approved by the national treasury and Nersa, and that the city did not increase the surcharge in the current year to avoid burdening residents.
Exemptions and Benefits
Masuku also noted that residents who have applied for exemption or are on the City’s Expanded Social Package (ESP) are not affected by the surcharge. She stated that the city has increased the benefits for the poor and allowed them to apply for this exemption, indicating that the city is not putting pressure on those who are not able to afford. However, the council earlier this year proposed increasing the prepaid electricity surcharge from R200 to R270 per month, which was met with public outcry and eventually shelved without any known public hearings.
Campaigning and Politics
Masuku described the ACDP’s motion as a tactic to campaign for the upcoming local government elections. However, Rohlssen denied this, stating that the motion is about caring for the well-being of the residents of Johannesburg who are already drowning in increase after increase. The motion was ultimately rejected by the ANC and its partners, who hold a majority in council. The debate surrounding the R200 surcharge is likely to continue, with opposition parties and residents pushing for its removal and the city arguing that it is necessary for the maintenance and upgrading of the electricity network.
Conclusion and Future Implications
The raging debate surrounding the R200 surcharge in the City of Johannesburg highlights the challenges faced by residents in terms of rising costs of living and escalating municipal tariffs. The surcharge has been a highly controversial topic, with some arguing that it is necessary for the maintenance and upgrading of the electricity network, while others see it as a burden on low-income working-class families. As the city continues to grapple with these challenges, it is likely that the debate surrounding the R200 surcharge will continue, with opposition parties and residents pushing for its removal and the city arguing that it is necessary for the maintenance and upgrading of the electricity network. Ultimately, the outcome of this debate will have significant implications for the residents of Johannesburg and the city’s ability to provide reliable and affordable electricity services.