Many Cape Town residents who purchased electricity yesterday would have noticed a reduction in the allocated units, with many not receiving the free units. This is attributed to the implementation of a tariff hike that took effect on 1 July 2023.
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The City bills residents based on a three-tier tariff system comprising the Lifeline tariff, the Domestic tariff and the Home User tariff.
The three tariffs and their respective costs and benefits are listed below:
Lifeline tariff:
The Lifeline tariff is a special, highly subsidised tariff intended to provide relief to prepaid customers with limited means. The monthly costs apply as follows:
- 0 – 60 or 25 kWh: Free basic electricity allocation (depending on average consumption)
- >60 or 25 – 600 kWh: 183,96 c/kWh (excl. VAT) or 211,55 c/kWh (incl. VAT)
- >600 plus kWh: 370,92 c/kWh (excl. VAT) or 426,56 c/kWh (incl. VAT)
If you exceed the monthly limit of 450 kWh, you will be moved to the Domestic or Home User tariff. No service charge applies to the Lifeline tariff.
The following qualifying criteria apply to this tariff:
- Your monthly electricity usage (calculated on a 12-month average) must be below 450 kWh. This usage includes any free basic electricity allocation
- Your municipal property valuation must be less than R500 000
- A prepaid electricity meter must be installed
If you meet the criteria for an indigent rebate, pensioner rebate or disabled rebate, you are not subject to the municipal property valuation requirement. However, it is still necessary to ensure that your monthly electricity usage remains below 450 kWh. Additionally, specific old-age homes operated by public benefit organisations may be eligible for the Lifeline tariff.
Please be aware that the Lifeline tariff is not automatically applied. To be eligible, you must apply for the appropriate electricity connection to receive this benefit.
Domestic tariff:
The Domestic tariff applies to you if you have a prepaid meter installed and receive more than 450 kWh per month (calculated on a 12-month average). The monthly costs apply as follows:
- 0 – 600 kWh: 305,04 c/kWh (excl. VAT) or 350,80 c/kWh (incl. VAT)
- >600 kWh: 370,92 c/kWh (excl. VAT) or 426,56 c/kWh (incl. VAT)
No service charge applies to this tariff. There is also no free basic electricity allocation on this tariff.
The following qualifying criteria apply to this tariff:
- Your municipal property valuation is between R500 000 and R1 000 000
- A prepaid electricity meter must be installed
- Your monthly electricity usage is above 450 kWh
Home User tariff:
The Home User tariff applies to you if you do not qualify for the Lifeline or Domestic tariff. The monthly costs apply as follows:
- 0 – 600 kWh: 268,33 c/kWh (excl. VAT) or 308,58 c/kWh (incl. VAT)
- >600 kWh: 370,92 c/kWh (excl. VAT) or 426,56 c/kWh (incl. VAT)
- Monthly Home User service charge of R219,21 (excl. VAT) or R252,09 (incl. VAT)
No free basic electricity allocation applies to the Home User tariff.
The following criteria apply to this tariff:
- Your municipal property valuation is R1 000 000 and above
- A credit meter is installed
For Eskom tariffs, please refer to the Eskom website.
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