By Rorisang Rampheteng (Free State World Correspondent)
CENTLEC’s introduction of a new R50 monthly electricity charge for non-indigent prepaid customers has raised widespread discussion, with many residents expressing concern over the affordability of the new tariff and the manner in which it was introduced.
The electricity distributor says the charge forms part of a mandatory cost-reflective tariff structure approved by the National Energy Regulator of South Africa (NERSA) and follows a landmark North Gauteng High Court ruling requiring all 177 municipalities to determine electricity tariffs through Cost of Supply (COS) studies.
The utility maintains that the new structure is aimed at ensuring the long-term financial sustainability of the electricity network while protecting indigent households from additional financial pressure.
Why is CENTLEC introducing the R50 charge?
According to CENTLEC, a Cost of Supply study found that the actual cost of maintaining a domestic electricity connection is approximately R527 per month. Instead of introducing the full amount, the municipality has opted for a phased approach by implementing a R50 monthly charge, representing less than 10% of the calculated cost.
The charge applies only to non-indigent domestic prepaid customers. Registered indigent households remain exempt and will continue receiving their Free Basic Electricity benefits.
For prepaid users, the R50 will automatically be deducted from the first electricity purchase made each month before the remaining balance is used to buy electricity units.
CENTLEC says the reform is necessary because the current tariff system relies too heavily on electricity sales to fund the maintenance of substations, power lines, and other infrastructure.
Residents voice frustration
Despite CENTLEC’s explanation, many residents have taken to social media to express their dissatisfaction with the new monthly charge.
Several users argued that the municipality failed to adequately consult residents before implementing the tariff, with some questioning whether sufficient public engagement took place.
Others raised concerns about the financial burden the additional cost could place on households already struggling with the rising cost of living.
Many social media users pointed to South Africa’s high unemployment rate, saying the introduction of another monthly expense comes at a time when many families are finding it increasingly difficult to afford basic necessities, including electricity.
Bloemfontein resident Mmuso Mokoena said the additional monthly charge would make it even harder for low-income households to afford electricity.
“When I buy R100 worth of electricity, I don’t even get 50 units anymore. Now they are introducing another R50 monthly charge. I earn a small income, and every rand counts. With the high unemployment rate and the rising cost of living, many families are already struggling to put food on the table. This additional charge will make it even more difficult for us to keep the lights on,” said Mokoena.
Some residents also questioned why consumers should pay a fixed monthly fee regardless of how much electricity they purchase.
While public concern continues to grow, CENTLEC insists that the tariff reform is intended to place the electricity network on a sustainable financial footing.
The utility argues that recovering a portion of the fixed costs associated with maintaining electricity infrastructure is necessary to ensure reliable service delivery and prevent further deterioration of the network.
CENTLEC has also encouraged qualifying households that have not yet registered as indigent to visit Mangaung Metropolitan Municipality offices to register, as indigent customers remain fully exempt from the monthly charge.
As debate continues, residents are expected to seek further clarity from both CENTLEC and the Mangaung Metropolitan Municipality on how the new tariff will affect households in the long term and whether additional public engagement will be undertaken.
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