Johannesburg electricity utility City Power CEO Tshifularo Mashava has assured business customers in the city that the entity is working on reviewing the yearly electricity tariffs to cushion businesses from increasing tariffs, as well as to attract businesses while saving jobs.

She noted that the utility wanted to ensure a balance between the needs of customers with the operational realities it encounters.

During her engagement with the Johannesburg Chamber of Commerce and Industry (JCCI), on February 13, Mashava emphasised the importance of the voice of the business customers in the year-to-year tariff review process, which is important to ensure it accurately reflects the cost of supply while meeting regulatory and operational requirements.

"We would like to reassure customers that we remain steadfast in our commitment to minimising the impact of tariff adjustments on business customers and vulnerable communities.

“Our focus remains on providing affordable and reliable electricity to all residents, while also working closely with local businesses to ensure they have a stable power supply, which is essential for their sustainability, job creation and the overall economy of our city and country," Mashava said.

She presented to the business community some of the measures City Power was busy with to alleviate the impact of tariffs on businesses. She said one of the avenues was to encourage business to onboard alternative green energy in collaboration with City Power without being penalised for it.

She cautioned against the independent power producers (IPPs) that promise cheaper rates while overlooking the extra tariff charges that these business customers will continue to carry.

Mashava urged businesses and new property developers to consider integrating green energy options into their operations through City Power. She said this would not only be more cost-effective than relying on external service providers but also supported collective goals for a greener, more efficient and more sustainable future.

"We are deploying our own renewable energy to support businesses who are exporting their goods to overseas markets that require clean energy as a prerequisite for production. City Power is continuing to modernise its network to support wheeling and other energy trading requirements,” she said.

Mashava added that, if a business customer opted to generate energy using their own service providers, they would still have to pay the cost of transporting that electricity into the premise, using City Power infrastructure.

“We need you to put solar energy, and as City Power we can't penalise you through the tariffs for that. We would, however, like to have you on availability-of-power tariff for in case the sun doesn't shine, and you need to use electricity," she added.

Mashava highlighted that City Power was ready to go out on a 20-year IPP tender in the coming days in a direct response to the sustained increase in Eskom tariffs approved by the National Energy Regulator of South Africa (Nersa).

"We are actively working on bringing in IPPs into our energy mix to avoid having to pay excessive rates, particularly in the winter period. Through collaboration with these IPPs, we will be able to provide electricity at more competitive rates, alleviating some of the financial pressures that we often have to absorb in the interest of our customers.

“We have already welcomed several IPPs to assist in our efforts to ensure City Power can deliver reliable electricity without imposing unsustainable costs,” Mashava said.

She noted that, about a year ago, council approved a plan for City Power to enter into a 20-year agreement with IPPs to ensure that the city remained energy secure and to sustain Johannesburg's economic development objective.

“In the coming weeks, we will be introducing the successful bidders of those IPP projects," Mashava said.

One of the primary concerns raised by the public last year during the introduction of a R200 service charge on prepaid customers was that it was too expensive, especially for low-income communities.

"The R200 was implemented to ensure residents in affluent areas, particularly those who have transitioned to prepaid meters, contribute to the maintenance and service costs, much like their postpaid counterparts.

“However, we do recognise the need for sensitivity towards our customers in lower-income areas. As part of our ongoing efforts, City Power is exploring avenues to exclude these customers from paying the R200 charge,” Mashava explained.

She said many customers in affluent areas had moved from postpaid to prepaid to avoid having to pay for maintenance charges that are fixed in the postpaid charges. That change in dynamics forced City Power to find ways to ensure those customers who transitioned to prepaid continue contributing towards those essential charges.

"We are continuously reviewing our tariff methods and structures to ensure the poor are cushioned from excessive increases. We are currently awaiting deliberations from Nersa regarding this year's tariff increase,” Mashava said.

Despite the challenges faced by the utility – such as ageing infrastructure, theft and vandalism, illegal connections, escalating Eskom prices and adverse weather conditions – City Power said it was working on modernising its systems to improve efficiency and reliability.

"We are also focused on enhancing energy security, promoting sustainable development, driving economic growth and improving service delivery to uplift the quality of life for all our communities. As an entity that operates in the ever-changing energy landscape, we have taken a strategic decision to pivot into other key areas of energy,” Mashava said.

She encouraged businesses to partner with City Power in securing infrastructure closer to their operations and extend their security coverage to include the electricity infrastructure, as the entity battles with vandalism and theft that contribute to disruption in electricity supply.

Mashava told JCCI members that City Power was currently exploring the electric vehicle (EV) market, which would be its key focus this year, to expand its business portfolio and to ensure the entity remained relevant.

City Power will roll out the EV programme, introducing charging stations to power and sustain the mobility of EVs. Mashava said details of this project would be announced soon.