Energy

Warning to prepaid electricity users in South Africa’s richest city

Johannesburg’s City Power is disconnecting households that do not regularly put money into their prepaid meters based on the claim that there must be an illegal connection. 

The utility has denied this, saying there will be no disconnections if residents comply with its regulations and processes.

Councillor Nicole van Dyk gave the example of a resident putting R10,000 into a prepaid meter to cover electricity expenses for six months. 

If you do this, you may risk disconnection as you do not regularly put money into the meter.

Van Dyk said the problem came to light a few weeks ago after residents complained of being cut off and charged a reconnection fee ranging from R12,000 to R30,000.

She explained that City Power had told these residents that they were not vending enough electricity and must have an illegal connection as they had not bought electricity regularly. 

Van Dyk and other DA councillors have asked City Power for further clarity, which she said has not been forthcoming. 

The City of Johannesburg (CoJ) is in poor financial health and has eyed tariffs and fees charged on the sale of electricity as a potential area to exploit for a quick revenue boost. 

Earlier this year, the CoJ tried to introduce a R530 service fee for electricity bought for a prepaid meter. The fee was eventually reduced to R230 after pressure from residents. 

Van Dyk said the disconnection of some residents with prepaid meters is a continuation of the city’s punitive approach to revenue collection. 

“You are punishing residents for paying upfront when the city is struggling to collect revenue from postpaid residents. It is constantly punitive,” she told 702

Furthermore, the CoJ’s flat network service fee is simply unworkable and unfairly impacts poorer households. 

Van Dyk explained that you cannot charge all users of prepaid meters a flat fee of R230, as some buy their electricity in extremely small amounts, such as R100, and others buy in tranches of R10,000 throughout the year. 

Joburg Mayor Dada Morero

City Power has released a press statement seeking to clarify its regulations and processes surrounding prepaid meters and solar installations in Johannesburg. 

The utility said it is concerned about councillors spreading of misinformation about managing solar installations and pre-paid meters. 

“That notice makes a number of false claims including that City Power will not install meters for customers who already have a solar system,” it said. 

“Additionally, it claims that the entity will cut off supply and impose a R30,000 fee if customers purchase electricity units in large amounts.” 

“City Power would like to put it on record that this is untrue, and we are calling for those who are spreading these lies to desist.”

The utility said it has streamlined the process of applying for a Small-Scale Embedded Generation (SSEG), which is required for the installation of solar systems. 

“As the implementing agent, we are committed to ensuring that all installations comply with safety and regulatory standards.”

If the systems do not comply with these standards, residents may be disconnected and charged a reconnection fee. 

Once the installation is complete, it is vital that the system undergoes testing and commissioning, City Power said. 

“Customers must submit the Certificate of Compliance (CoC) along with the PV Commissioning Form to City Power.” 

Following a successful review, City Power will issue a pre-approval letter, leading to the final approval letter. 

A smart/bi-directional meter will be installed at the customer’s expense to facilitate the measurement of both electricity import and export. 

“This means that those seeking to install solar will be converted to post-paid to enable City Power to monitor consumption and ensure that they contribute towards network service fees like all other customers.”

City Power made clear that compliance with all of its bylaws in mandatory and that each connection must be declared and approved by the the utility. 

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