Enoch Mgijima Municipality Warns Against Illegal Prepaid Electricity Surcharges

Enoch Mgijima Local Municipality has issued a strong public warning to shops, spaza shops and electricity vendors against charging any additional fees on prepaid electricity sales, stating that such practices are illegal and must stop immediately.

In a public notice circulated this week, the municipality made it clear that no surcharges, service fees or added costs may be imposed on prepaid electricity purchases. Vendors are legally required to sell electricity strictly at the approved National Energy Regulator of South Africa (NERSA) tariff, with no extra amounts added under any circumstances.

According to the municipality, the directive is based on the Electricity Regulation Act of 2006 and NERSA’s Electricity Resale Guidelines, which expressly prohibit the resale of electricity at prices higher than the official approved tariff. This means that customers must receive the full value of electricity units they pay for, without deductions or hidden charges.

The notice specifically warns that common practices such as adding R2, R5 or so-called “service fees” to electricity purchases are unlawful. The municipality described these charges as exploitative, noting that they place unnecessary financial strain on already struggling households and undermine consumer protection laws.

The municipality further pointed out that the Consumer Protection Act also applies in these cases, as it prohibits charging more than the advertised or approved price. Any vendor found violating these rules may face enforcement action once reported.

Residents across Komani and surrounding areas are urged to refuse to pay illegal surcharges and to report offending vendors immediately. The municipality has provided a direct contact number and also encouraged residents to inform their ward councillors, who can escalate complaints to the IPED Directorate for investigation and follow-up.

The notice reinforces the principle that electricity pricing must be transparent and fair, stressing that prepaid electricity should be sold at one price, with no surcharge, and with full units issued to consumers.

The municipality says the warning forms part of its broader effort to protect residents’ rights and ensure fairness in essential services, especially as electricity costs continue to impact low-income households.

Residents who suspect overcharging or unlawful practices are encouraged to come forward, as public reporting plays a key role in stopping abuse and ensuring compliance across all vendors operating within the municipality.