Johannesburg Keeps Controversial R200 Prepaid Electricity Surcharge Despite Public Outcry

Johannesburg residents using prepaid electricity will have to budget a little tighter again this year. The City has officially extended its R200 monthly surcharge on prepaid electricity for the 2025/26 financial year — a decision that hasn’t been welcomed by everyone.

Finance MMC Margaret Arnolds confirmed during her budget speech on Wednesday that the surcharge, introduced in July 2024, would remain unchanged. The announcement follows months of debate and frustration among residents, many of whom feel the added cost has become an unfair burden.

But according to Arnolds, this isn’t just about raising funds — it’s about protecting the city’s most vulnerable.

“We refuse to allow economic pressure to push our people further into the margins. That is why we are holding the prepaid electricity surcharge unchanged at R200, excluding VAT,” she said.

[WATCH] Johannesburg Finance MMC Margaret Arnolds has tabled an R89.4 Billion budget for the upcoming financial year.

Electricity and Water remain the city’s biggest revenue sources – followed by property rates and the fuel levy. @JusstAlpha pic.twitter.com/eoBG0jqzje

— EWN Reporter (@ewnreporter) May 28, 2025

Arnolds emphasized that keeping the surcharge steady is part of a broader pro-poor strategy that aims to ensure low-income households are not priced out of access to basic services.

The R200 surcharge, a fixed monthly fee for prepaid users, is expected to contribute significantly to the city’s R25 billion electricity revenue forecast for 2025/26. That figure represents a 12.5% increase compared to the current fiscal year, largely due to service charges and the Eskom-linked tariff hike.

While the surcharge remains unpopular with many consumers, the city argues that it’s still more affordable than similar charges in other major metros across South Africa.

“This budget makes it clear: we will not govern in a way that reproduces inequality,” Arnolds added. “Our pro-poor programme is a political choice rooted in equity, dignity, and redress.”

Still, the financial strain is real. Many residents say the surcharge, especially amid rising living costs, continues to chip away at household budgets. But for now, the city is standing firm — betting that its efforts to shield the poor will outweigh the criticism.

Whether residents agree or not, the surcharge stays — at least until the next budget cycle.

Joburg Tables R89.4 Billion Budget Focused on Growth and Shielding the Vulnerable

{Source: EWN}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com