The metro’s power utility had announced that, from 1 July, prepaid electricity customers would pay a monthly charge of R57.50, comprising a R50 electricity surcharge and R7.50 VAT. The amount was to be deducted from the first electricity purchase of every month, while registered indigent households would remain exempt and continue receiving their free basic electricity allocation.

Centlec acting spokesperson Tsheliso Leba previously explained the utility was implementing mandatory cost-reflective tariff structures following a landmark North Gauteng court ruling. 

Leba said the utility has adopted a tariff model informed by a comprehensive cost of supply study, which found Centlec’s current revenue collection relies too heavily on variable energy charges instead of fixed network costs.

“The true monthly cost of maintaining a domestic connection is R527, yet Centlec is implementing a phased-in charge of only R50 as approved by Nersa. This structural reform is essential to ensure the long-term financial viability and maintenance of the local infrastructure.”

Despite the metro’s justification, the proposed surcharge drew fierce criticism during a recent Mangaung council meeting.

Afrikan Alliance of Social Democrats councillor in Mangaung Lucky Mongale accused Nersa of failing in its mandate to protect consumers, describing some of its representatives as self-serving.

‘Have mercy on our people’ 

“I plead with the mayor of Mangaung because I know he loves the community. He demonstrates it when he was talking about the issue of the court. I want to plead with him and other councillors to say: let’s not attack our people and let’s not even use those military tactics to say you are retreating. 

“But you know you are applying tactics; after elections you going to launch a missile and the R50 will re-appear. I plead with all of you to say please have mercy on our people."

Mongale argued many struggling residents fall outside the metro’s indigent register despite having no source of income.

“There are people in the metro who do not appear in the indigent register, not working, who survive by asking money from council whip, who even approach the mayor but are not classified as indigent but when buying electricity must still pay R50 as they are not on the register.”

The councillor further argued politicians, rather than ordinary residents, should bear the consequences of governance failures.

“If this punishment was going to be on us politicians because we are the ones messing up people’s lives and after messing up their lives we have courage to sing, speak English and justify cases. 

“I am speaking of politicians even in parliament. They should carry these costs, not ordinary people who were not there when we messed up the system, who were not there when we failed to play our oversight role, who were not there when money was stolen because this R50 is addressing Cat Matlala, the stolen money.”

Governance decision

However, Mangaung executive mayor Gregory Nthatisi rejected suggestions the metro backed down because of pressure from opposition parties. 

Nthatisi said the decision to defer implementation of the surcharge was neither a retreat under political pressure nor a concession to opposition grandstanding, but rather a deliberate, principled and carefully considered governance decision arising from the metro’s commitment to responsible leadership, meaningful public participation and protection of vulnerable residents.

He said council carefully weighed the metro’s financial challenges against its constitutional obligation to protect vulnerable communities. 

Nthatisi acknowledged Mangaung faces serious fiscal and infrastructure pressures within its electricity distribution network but stressed any reforms must not unfairly burden indigent households, pensioners, low-income families and other vulnerable residents.

OFM News/Kekeletso Mosebetsi dg

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