How can I reduce the electricity tariff of my new flat?

The long answer

Go to the municipality and explain the problem to them - it may be that they have not updated the account details. Perhaps you should make a written affidavit saying how much you were paying before you moved into this flat and that while the previous owner was a high electricity user, you are not, and that you should be paying the same as the other residents – R50 for 24 to 25 units. Include details of your family and how you are struggling to cope with this higher electricity charge. Make a note of the date and whom you speak to at the municipality in case you have to take it further.

The City of Cape Town put out an explanatory notice about how electricity charges are worked out in 2023/24. The following information from it may be useful to you in dealing with your problem (note that the figures quoted are from 2023/24 and may have changed).

• 1 unit of electricity is equal to 1 kWh; 

• The step from Block 1 to Block 2 of the tariff is applied taking all the purchases for that month into account, not each individual purchase; 

• The LIFELINE TARIFF must be requested by the customer; it is not applied automatically and is subject to meeting conditions/criteria;

• In assessing a particular customer, the average consumption over the previous 12 months, at the time of assessment, is used, along with the municipal property valuation of that customer, and the type of meter present; 

• A customer whose previous 12-month average consumption is above 450 kWh is automatically moved to the DOMESTIC TARIFF, in September and March of each year.

You are eligible for the lifeline tariff if (1) you have a municipal property valuation of R500,000 or less, (2) you receive less than an average of 450 kWh per month, including free electricity, and (3) you have a prepayment meter. The notice adds, “If you receive a pensioner or disabled persons rebate in terms of the Rates Policy, or are a tenant who otherwise would have qualified for such a rebate, or are registered as Indigent in terms of the Credit Control and Debt Collection Policy, the property valuation provision falls away.”

Block 1: Free Basic energy. Balance up to 600 kWh per calendar month (183.96 c/kWh plus VAT) = 211.55 c/kWh. 

Block 2: Above 600 kWh per calendar month (370.92 c/kWh plus VAT) = 426.56 c/kWh)

You will be charged on the domestic tariff if (1) you have a municipal property valuation of R500,000 to R1,000,000, (2) you receive more than 450 kWh per month on average over any 12 consecutive month period, and (3) you have a prepayment meter.

Block 1: 0 – 600 kWh per calendar month (305.04 c/kWh plus VAT) = 350.80 c/kWh. 

Block 2: Above 600 kWh per calendar month (370.92 c/kWh plus VAT) = 426.56 c/kWh.

You will be charged on the home user tariff if you have a credit meter (municipal property value not important), OR if you have a prepayment meter on a municipal property valuation of R1,000,000 or more.

On this tariff, you pay a monthly service charge of R252.09. 

Block 1: 0 – 600 kWh per calendar month (268.33 c/kWh plus VAT) = 308.58 c/kWh 

Block 2: Above 600 kWh per calendar month (370.92 c/kWh plus VAT) = 426.56 c/kWh.

Wishing you the best,
Athalie