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Hard-pressed Johannesburg residents will have to dig deeper into their pockets to cover their electricity bills as City Power implements a new tariff increase, which will see prices increase by 8.63% from July 1. The increase has been approved by the National Energy Regulator of SA (Nersa).City Power spokesman Isaac Mangena says the approved tariff adjustment for the 2026/27 financial year stands at 8.63%, lower than both Nersa and Eskom’s approved increases. “This will reflect the ongoing effort to balance the rising costs of maintaining and operating a reliable electricity network with the financial pressures faced by customers,” says Isaac. Nersa approved an annual average tariff increase of 8.76% for Eskom, resulting in an effective bulk purchase cost increase of 9.01% for municipal entities. Mangena said the tariff review process was guided by Nersa’s methodology, the City Power Cost of Supply Study, operational requirements, bulk electricity purchase costs, infrastructure maintenance needs, and long-term network sustainability.He said the tariff determination process included inputs from customers and stakeholders through the City of Johannesburg’s Integrated Development Plan consultations and other public participation platforms.Mangena also confirmed City Power would continue to provide relief to qualifying households with the residential prepaid low (indigent) tariff. According to Mangena, registered indigent customers remained exempt from the R70 monthly service charge and R140 network capacity charge, resulting in savings of up to R210 per month. He said indigent households would also continue to benefit from the Extended Social Package and Free Basic Electricity programmes by receiving 50kWh and 120kWh of free electricity monthly, depending on household size and income. The programme supports vulnerable groups including pensioners, persons with disabilities, unemployed residents, child-headed households, and households earning R7,800 or less per month.Acting City Power CEO Charles Tlouane said the entity remained committed to balancing affordability with the need to maintain a reliable electricity network.“We understand that electricity tariff adjustments have a direct impact on households and businesses, particularly during challenging economic times. This is why we have worked carefully to contain the increase wherever possible while ensuring that we continue investing in the infrastructure needed to keep our supply areas powered,” said Tlouane.He further added that revenue generated through tariffs enabled City Power to maintain and upgrade ageing infrastructure, strengthen the electricity network, improve reliability, and continue to protect vulnerable households through targeted interventions and the Free Basic Electricity Programme.City Power has encouraged customers to familiarise themselves with the new tariffs and use available information guides to understand how the changes affect their consumption categories.TimesLIVE
