Residents and businesses in Johannesburg are set to pay more for electricity after City Power implemented new tariffs that took effect on July 1, following approval by South Africa’s National Energy Regulator (NERSA).
The revised pricing increases electricity tariffs by 8.63% for the 2026/27 financial year, as the municipal utility seeks to address growing operational costs while maintaining the city’s power infrastructure.
New Tariff Lower Than Eskom’s Approved Increase
City Power said the latest adjustment is below both the increase approved for Eskom and the tariff level authorized by NERSA.
According to the utility, Eskom received an average annual tariff increase of 8.76%, translating into a 9.01% rise in the cost of bulk electricity purchases supplied to municipalities.
Officials said the lower increase reflects efforts to reduce the financial burden on customers while still ensuring the sustainability of the electricity network.
Utility Explains Basis for Price Adjustment
City Power spokesperson Isaac Mangena said the tariff review was conducted using NERSA’s regulatory methodology alongside the utility’s Cost of Supply Study.
The review also considered operational expenses, rising bulk electricity procurement costs, infrastructure maintenance requirements and long-term investments needed to strengthen Johannesburg’s electricity distribution network.
Mangena added that public input formed part of the decision-making process through consultations linked to the City of Johannesburg’s Integrated Development Plan and other stakeholder engagement platforms.
Financial Relief Continues for Qualifying Households
Despite the tariff increase, City Power confirmed that support measures for qualifying low-income households will remain in place.
Customers registered under the residential prepaid low-income tariff will continue to be exempt from the R70 monthly service charge and the R140 network capacity charge, providing savings of up to R210 each month.
Eligible households will also continue receiving benefits through the Extended Social Package and the Free Basic Electricity Programme.
Free Electricity Programme Remains Available
Under the existing assistance programme, qualifying residents will continue receiving between 50 kilowatt-hours and 120 kilowatt-hours of free electricity each month, depending on household size and income.
The initiative supports vulnerable residents, including pensioners, people living with disabilities, unemployed individuals, child-headed households and families earning R7,800 or less per month.
City Power said the programme remains an important part of its efforts to protect customers most affected by rising living costs.
Utility Balances Affordability and Network Investment
Acting Chief Executive Officer Charles Tlouane acknowledged that higher electricity prices place additional pressure on households and businesses already facing economic challenges.
He said the utility had sought to limit the size of the increase while ensuring sufficient funding to maintain and modernize ageing infrastructure, improve network reliability and sustain electricity services across Johannesburg.
According to Tlouane, tariff revenue is essential for financing infrastructure upgrades, strengthening the electricity grid and continuing social support programmes for vulnerable customers.
Customers Encouraged to Review Updated Tariffs
City Power has advised customers to familiarize themselves with the revised tariff structure and consult available information guides to understand how the changes apply to their respective electricity usage categories.
The utility said greater awareness of the updated pricing system will help households and businesses better manage their electricity consumption under the new tariff regime.
