OUTA’s JoburgCAN division is urging the City of Johannesburg to scrap the new prepaid electricity surcharge, as it is nothing but a flawed approach to tackle the City’s growing customer debt, which now exceeds R49.650 billion. 

OUTA's Executive Manager for Local Government, Julius Kleynhans, argues that this charge will significantly impact vulnerable communities and should be scrapped, as it adds financial strain to households already grappling with the high costs of living. JoburgCAN also calls for an update of the indigent register and measures to ensure that Treasury grants are used for basic services to the people. The city’s data shows that at least 670 000 households are already living below the poverty line. 

 Here are our key points of concern on this issue: 

• Rising Customer Debt: Customer debt has surged by R4.604bn in six months to R49.650bn, with R40.309bn owed by households for utilities and rates. This debt, older than three months, is considered bad debt.

• Electricity Debt Increase: Electricity debt alone is R7.654bn, having risen by R709 million over six months, mostly from postpaid customers.

• Inadequate Indigent Register: The City has failed to implement an effective indigent register, leaving many without necessary support despite receiving national funding.

• Mismanagement of Public Funds: The City is accused of overspending on staff and security, while underspending on essential maintenance, raising concerns about the allocation of surcharge revenue.

• Failed Public Participation: The public outcry over the surcharge highlights the City’s failure to engage residents meaningfully in the budget process, underscoring the need for better public involvement. 

For a more comprehensive, detailed explanation of the issue, click here.

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