Joburg billing shock: City Power taken to court over sudden electricity spike

When the lights stay on, but the costs double

For many Joburg businesses and organisations, rising utility costs are nothing new. But for one major industry body, the numbers didn’t just creep up they jumped overnight.

Now, the National Bargaining Council for the Road Freight and Logistics Industry has taken legal action against City Power, accusing the utility of failing to explain a dramatic spike in its electricity bill.

At the centre of the dispute is a newly installed electricity meter and a monthly bill that allegedly doubled without warning.

A routine upgrade that raised alarm bells

The trouble began in April 2024 at the council’s Braamfontein offices, where a replacement meter was installed.

Before the change, the organisation says it paid around R100,000 a month for electricity. After the installation, that figure reportedly surged to R200,000 despite no increase in operations or usage.

For the council, the numbers simply didn’t add up.

Attempts to resolve and growing frustration

According to court papers, the organisation tried repeatedly to engage with City Power, seeking clarity on the billing jump.

When those efforts led nowhere, the matter was escalated to the Johannesburg ombudsman in October 2024. The ombudsman recommended that an investigation be conducted and that the findings be shared within a reasonable timeframe.

But months later, the council says it is still waiting.

In the meantime, the situation has worsened.

Disconnection threats and a R1.3 million dispute

The dispute escalated when City Power allegedly issued a notice claiming the council owed about R1.3 million in arrears.

The council disputes this, insisting it has continued to make regular payments and has not defaulted.

At one point, electricity supply to the premises was even cut a move that raised serious concerns about operational continuity.

The Braamfontein office is more than just a workplace. It’s described as the organisation’s national nerve centre, with around 100 employees on-site daily and dozens of visitors relying on its services.

A prolonged outage, they argue, would effectively shut down key labour processes in the freight and logistics sector.

The legal battle begins

With no clear answers forthcoming, the council has now turned to the courts.

Its application seeks two key outcomes:

• To compel City Power to release the findings of its billing investigation
• To prevent any further disconnection of electricity while the dispute remains unresolved

The council argues that the utility’s actions including continued billing without explanation are not only unfair but unconstitutional.

City Power responds

For its part, City Power says it is aware of the dispute and has begun engaging with the council’s legal representatives.

Spokesperson Isaac Mangena indicated that the issue may be linked to estimated readings from the newly installed meter, adding that the matter is still being assessed.

A familiar struggle for Joburg residents

While this case involves a large organisation, its themes are strikingly familiar to ordinary residents.

Across Johannesburg, complaints about billing discrepancies, estimated readings, and unexplained increases have become increasingly common.

Social media is filled with stories of households and businesses battling inflated accounts, often with little clarity or resolution.

For many, this case feels like a reflection of a much broader issue.

The bigger picture: trust and transparency

At its core, this dispute is about more than numbers on a bill.

It’s about trust and whether residents and organisations can rely on the systems meant to serve them.

When billing systems appear inconsistent or opaque, confidence in public utilities begins to erode.

And in a city already grappling with infrastructure challenges, that loss of trust can be just as damaging as the financial impact itself.

A test case for accountability

As the case heads to court, it could set an important precedent not just for the council involved, but for countless others facing similar disputes.

Because in Johannesburg today, the question isn’t just how much electricity costs.

It’s whether anyone can confidently explain why.