The cost of electricity

We bill you based on a three-tier tariff system comprising of the Lifeline tariff, the Domestic tariff and the Home User tariff. Continue reading to find out how this works for residential and commercial properties.

Residential electricity tariffs

The tariff that applies to you is determined by:

your monthly usage (calculated on a 12-month average);
the value of your property;
the type of electricity meter you have;
and whether you are registered for receiving a rates rebate.

The 2025/26 residential electricity tariffs are in effect from 1 July 2025 for customers in the City of Cape Town supply area. For Eskom tariffs, please refer to the Eskom website.

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: 226.53 c/kWh (excl. VAT) or 260.51 c/kWh (incl. VAT)
>600 plus kWh: 226.53 c/kWh (excl. VAT) or 260.51 c/kWh (incl. VAT) – block 2 is the same as block 1.

If you exceed the monthly limit of 450 kWh on average (single purchases can exceed this value), 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 qualify for an indigent rebate or a pensioner or disabled rebate, you are exempted from the municipal property valuation criterion, but you will still need to keep your usage below 450 kWh per month. Certain old age homes run by public benefit organisations may also qualify for the Lifeline tariff.

Please note that the Lifeline tariff is not applied automatically. To qualify, you will need to apply for the correct electricity connection in order to receive the benefit.

**Example of average monthly account billing on the Lifeline tariff**
Units received (kWh)	2024/25	2025/26	% increase
60	R0,00	R0,00	Unchanged
150	R213,37	R234,46	9.88%
250	R450,45	R494,97	9.88%
350	R770,51	R846,66	9.88%
450	R1 007,59	R1 107,17	9.88%
600	R1 363,21	R1 497,93	9.88%
750	R1 718,83	R1 888,70	9.88%

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:

A monthly Domestic Service and Wires charge of R59.90 per month (excl. VAT) or R68.89 (incl. VAT), to be billed via the Vending System as a daily rate of R1.97 (excl. VAT) or R2.27 (incl. VAT) per day since the previous purchase.
0 – 600 kWh: 339.95 c/kWh (excl. VAT) or 390.94 c/kWh (incl. VAT)
>600 kWh: 404.13 c/kWh (excl. VAT) or 464.75 c/kWh (incl. VAT)

There is 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

**Example of average monthly account billing on the Domestic tariff**
Units received (kWh)	2024/25	2025/26	% increase
250	R976,75	R1 046,24	7,11%
450	R1 758,15	R1 828,12	3,98%
600	R2 344,20	R2 414,53	3,00%
800	R3 294,98	R3 344,03	1,49%
1 000	R4 245,76	R4 273,53	0,65%
1 500	R6 622,71	R6 597,28	-0,38%

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: 293.62 c/kWh (excl. VAT) or 337.66 c/kWh (incl. VAT)
>600 kWh: 384.23 c/kWh (excl. VAT) or 441.86 c/kWh (incl. VAT)
Monthly Home User service and wires charge of R339.89 (excl. VAT) or R390.87 (incl. VAT)

No free basic electricity allocation applies for 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

**Example of average monthly account billing on the Home User tariff**
Units received (kWh)	2024/25	2025/26	% increase
250	R1 140,56	R1 235,02	8,28%
450	R1 827,58	R1 910,34	4,53%
600	R2 342,84	R2 416,83	3,16%
800	R3 293,62	R3 300,55	0,21%
1 000	R4 244,40	R4 184,27	1,42%
1 500	R6 621,35	R6 393,57	-3,44%

ABOUT THE FIXED CHARGES

The fixed electricity charges are implemented to ensure that (among others) basic infrastructure and maintenance costs are consistently covered, regardless of an individual’s consumption. This helps ensure that everyone contributes to the upkeep of the grid, which benefits all users. Without fixed charges, the burden would fall disproportionately on those that use more electricity, which could create an inequitable system where high consumers (who may not necessarily be the more well-off customers) bear the entire cost of maintaining the grid.

Further information on tariffs

Find out how you can save electricity.

BUYING PREPAID ELECTRICITY

Purchase electricity once a month, and only buy as much as you need. You are billed on total monthly usage, so there is no saving if you purchase smaller amounts or in bulk. Your electricity charges are based on what tariff you are on.

Find out more about the best way to buy prepaid electricity and visit our Buy prepaid electricity page.

Commercial electricity tariffs

Commercial electricity tariffs are charged according to power usage.

As a commercial or industrial electricity customer, the following tariffs apply:

Small Power User 1 (high consumption)
Small Power User 2 (low consumption)
Small Power User 3 (ultra-low consumption)
Large User LV Time-of-Use tariff.
Large User MV Time-of-Use tariff.
Large User HV Time-of-Use tariff

You will be charged a service and energy charge on all tariffs, as well as a demand charge for commercial tariffs other than the Small Power User tariffs. Aside from the amount of power you consume, you may also be charged according to when you use power – this is called Time-of-Use.

See the Electricity Consumptive Tariffs annexure for a detailed breakdown of all applicable charges.

Please note

It remains your responsibility to ensure that you are on the most beneficial tariff for your individual usage pattern. The balancing point for Small Power User 1 and 2 tariffs is approximately 1 300 kWh per month.The balancing point for Small Power User 2 and 3 tariffs is approximately 250 kWh per month.

For further information, see our Understanding Commercial SPU Electricity Tariffs Guideline.

Tariff resources

Relevant terms and conditions regarding which tariff or group of tariffs may be applicable can be found in our Tariff Policies document. You can see all tariffs and Time-of-Use details in our tariff schedule in the document download section below.
If you don't have a municipal account with the City of Cape Town, you will have to register for one. You can do this through e-Services. Follow the City Connect link below to find out how to register with e-Services.

City Connect

Register for e-Services

Frequently asked questions

Please consult our Electricity Tariffs FAQ for further tariff-related information.

How do we decide on the electricity price?

We consider the following factors:

Changes in customers’ usage patterns
Proposed Eskom price increases
The economic outlook/inflation
Other external shocks (wars, loadshedding etc.)
The Electricity Generation and Distribution Department's operating and maintenance costs

Please note

Cape Town’s electricity tariffs have been formulated in accordance with the Local Government: Municipal Systems Act and Local Government: Municipal Finance Management Act.