The Hidden Fee on Your Electricity Meter: ActionSA Exposes a Quiet Tax on the Vulnerable
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| Image source: Eskom South Africa |
Across Gauteng, residents are being hit with hidden electricity costs that many don’t even fully understand not for power consumed, but simply for being connected to the grid. In cities like Johannesburg and Ekurhuleni, a monthly surcharge of R200 (plus VAT) is quietly deducted from prepaid electricity users, impacting the most financially vulnerable South Africans.
This information, brought to public attention by ActionSA, highlights a growing crisis where low income households, pensioners, and small businesses are carrying the cost of years of mismanagement in the energy sector.
The Cost of Just Staying Plugged In
Imagine being charged hundreds of rands monthly, even if you use very little electricity. That’s the reality now facing thousands. One notable example cited by ActionSA is Granny Flora, an 80-year-old woman who spends over R2,000 per month on electricity most of it due to standing charges, not actual usage.
Introduced in July 2024, this fee began in Johannesburg and was later embedded in Ekurhuleni’s 2025/26 tariff plan. These charges are being used to fill the financial gaps left by government bailouts, failed projects, and ongoing debt not to improve service delivery or infrastructure.
A Different Path in Tshwane
While these surcharges were rolled out across most of Gauteng, the City of Tshwane under a coalition including ActionSA refused to adopt the fee. Tshwane instead implemented a more balanced financial strategy that avoids punishing poor households, showing that alternative, fairer models are possible when political will exists.
Where Is the Oversight?
The role of the National Energy Regulator of South Africa (NERSA) is also under scrutiny. According to ActionSA, NERSA approved these additional charges with limited transparency or consultation, leading to public distrust and frustration. Critics argue that a regulator tasked with protecting the public interest should not endorse fee structures that harm the poor.
ActionSA’s Call for Reform
ActionSA has been vocal in its opposition to the electricity surcharge and has outlined a set of urgent reforms:
- Public hearings in the Gauteng Provincial Legislature to assess the real impact of the surcharge;
- Parliamentary accountability for NERSA, demanding explanations for approving the charges;
- Greater transparency on how municipalities calculate and justify tariffs;
- Alternative, pro-poor revenue models that don’t punish households using low amounts of electricity.
In May 2025, Johannesburg's council moved to halt a planned increase to the surcharge. ActionSA welcomed the pause but emphasized that the existing fixed fee still needs to be removed entirely to prevent further harm.
Electricity Is Not a Luxury
ActionSA has consistently argued that electricity must be treated as a basic human need, not a luxury good. It powers schools, homes, health equipment, and local businesses. By charging people just for being connected regardless of usage municipalities are enforcing an unjust system that deepens poverty and inequality.
The deeper issue, as ActionSA rightly points out, is that these surcharges effectively pass the cost of corruption and inefficiency onto ordinary South Africans. As they’ve said, “We pay for the bailouts. We pay for the inflated tenders. And when the money runs out, we’re asked to pay more quietly and without protest.”
The Way Forward
It doesn’t have to be this way. ActionSA has shown that municipalities can generate revenue without punishing the poor. With strong oversight, transparent governance, and a focus on ethical budgeting, cities can fund services and infrastructure without deepening inequality.
South Africans deserve better. They deserve fair pricing, competent governance, and a system that works for them not one that charges them for simply existing.
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