| The cost of electricity | The cost of electricity | | <img alt="" src="https://resource.capetown.gov.za/cityassets/PublishingImages/The%20Cost%20Of%20Residencial%20Electricity%20Header.jpg" style="BORDER:0px solid;" /> | <div class="ExternalClass5B0291B151BE4E209D62C6FBDDBE1B2B"><p>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.</p></div> | <h2 class="sectHeading">Residential electricity tariffs</h2><p>The tariff that applies to you is determined by:</p><ul><li> your monthly usage (calculated on a 12-month average); </li><li>the value of your property; </li><li>the type of electricity meter you have;</li><li> and whether you are registered for receiving a rates rebate.</li></ul><p>The 2024/25 residential electricity tariffs are in effect from 1 July 2024 for customers in the City of Cape Town supply area. For Eskom tariffs, please refer to the
<a href="https://www.eskom.co.za/CustomerCare/TariffsAndCharges/Pages/Tariffs_And_Charges.aspx" target="_blank">Eskom website</a><i class="icon link-external"></i>.</p><p>The three tariffs and their respective costs and benefits are listed below:</p><h4>Lifeline tariff<br></h4><p>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:</p><ul><li>0 – 60 or 25 kWh: Free basic electricity allocation (depending on average consumption)</li><li>>60 or 25 – 600 kWh: R206.16 c/kWh (excl. VAT) or R237.08 c/kWh (incl. VAT)<br></li><li>>600 plus kWh: R206.16 c/kWh (excl. VAT) or R237.08 c/kWh (incl. VAT)</li></ul><p>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. </p><p> The following qualifying criteria apply to this tariff:<br></p><ul><li>Your monthly electricity usage (calculated on a 12-month average) must be below 450 kWh. This usage includes any free basic electricity allocation<br></li><li>Your municipal property valuation must be less than R500 000</li><li>A prepaid electricity meter must be installed</li></ul><p>If you qualify for an
<a href="https://www.capetown.gov.za/local%20and%20communities/financial-relief-and-rebates/financial-support-services/indigent-benefits">indigent rebate</a> or a
<a href="https://www.capetown.gov.za/Family%20and%20home/financial-relief-and-rebates/financial-support-services/pensioner-and-social-grant-support">pensioner or disabled rebate</a>, 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.</p><p>Please note that the Lifeline tariff is not applied automatically. To qualify, you will need to
<a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/Apply-for-an-electricity-connection">apply for the correct electricity connection</a> in order to receive the benefit.</p><div class="mobile-scroll"><table width="100%" class="ms-rteTable-default" cellspacing="0" style="text-align:center;">
<caption>
<strong>Example of average monthly account billing on the Lifeline tariff</strong></caption>
<thead><tr class="ms-rteTableHeaderRow-default"><th class="ms-rteTableHeaderEvenCol-default"><strong>Units received (kWh)</strong></th><th class="ms-rteTableHeaderOddCol-default">
<strong>2023/24</strong></th><th class="ms-rteTableHeaderEvenCol-default" colspan="1">2024/25<br></th><th class="ms-rteTableHeaderOddCol-default">
<strong>% increase</strong></th></tr></thead><tbody><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">60</td><td class="ms-rteTableOddCol-default">R0,00</td><td class="ms-rteTableEvenCol-default" colspan="1">R0,00</td><td class="ms-rteTableOddCol-default">Unchanged</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">150</td><td class="ms-rteTableOddCol-default">R190,40<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R213,37<br></td><td class="ms-rteTableOddCol-default">12,07%</td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">250</td><td class="ms-rteTableOddCol-default">R401,95<br></td><td class="ms-rteTableEvenCol-default" colspan="1">
<span aria-hidden="true"></span>R450,45<br></td><td class="ms-rteTableOddCol-default">12,07%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">350</td><td class="ms-rteTableOddCol-default">R687,54<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R770,51<br></td><td class="ms-rteTableOddCol-default">12,07%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">450</td><td class="ms-rteTableOddCol-default">R899,09<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R1 007,59<br></td><td class="ms-rteTableOddCol-default">12,07%<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">600<br></td><td class="ms-rteTableOddCol-default">R1 216,41<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R1 363,21</td><td class="ms-rteTableOddCol-default">12,07%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1">750<br></td><td class="ms-rteTableFooterOddCol-default" rowspan="1">R1 856,25<br></td><td class="ms-rteTableFooterEvenCol-default" colspan="1" rowspan="1">R1 718,83<br></td><td class="ms-rteTableFooterOddCol-default" rowspan="1">-7,40%</td></tr></tbody></table></div><h4>Domestic tariff </h4><p>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:</p><ul><li>0 – 600 kWh: R339.74 c/kWh (excl. VAT) or R390.70 c/kWh (incl. VAT)</li><li>>600 kWh: R413.38 c/kWh (excl. VAT) or R475.39 c/kWh (incl. VAT) </li></ul><p>No service charge applies to this tariff. There is also no free basic electricity allocation on this tariff. </p><p>The following qualifying criteria apply to this tariff:</p><ul><li>Your municipal property valuation is between R500 000 and R1 000 000</li><li>A prepaid electricity meter must be installed</li><li>Your monthly electricity usage is above 450 kWh</li></ul><div class="mobile-scroll"><table width="100%" class="ms-rteTable-default" cellspacing="0" style="text-align:center;">
<caption><strong>Example of average monthly account billing on the Domestic tariff</strong></caption>
<thead><tr class="ms-rteTableHeaderRow-default"><th class="ms-rteTableHeaderEvenCol-default"><strong>Units received (kWh)</strong></th><th class="ms-rteTableHeaderOddCol-default">
<strong>2023/24</strong></th><th class="ms-rteTableHeaderEvenCol-default" colspan="1">2024/25<br></th><th class="ms-rteTableHeaderOddCol-default">
<strong>% increase</strong></th></tr></thead><tbody><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">250</td><td class="ms-rteTableOddCol-default">R877,00</td><td class="ms-rteTableEvenCol-default" colspan="1">R976,75<br></td><td class="ms-rteTableOddCol-default">11,37%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">450</td><td class="ms-rteTableOddCol-default">R1 578,60<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R1 758,15<br></td><td class="ms-rteTableOddCol-default">11,37%</td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">600</td><td class="ms-rteTableOddCol-default">R2 104,80<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R2 344,20<br></td><td class="ms-rteTableOddCol-default">11,37%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">800</td><td class="ms-rteTableOddCol-default">R2 957,92<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R3 294,98<br></td><td class="ms-rteTableOddCol-default">11,40%</td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">1 000</td><td class="ms-rteTableOddCol-default">R3 811,04<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R4 245,76<br></td><td class="ms-rteTableOddCol-default">11,41%<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">1 500</td><td class="ms-rteTableOddCol-default">R5 943,84<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R6 622,71<br></td><td class="ms-rteTableOddCol-default">11,42%</td></tr></tbody></table></div>
<h4>Home User tariff</h4><p>The Home User tariff applies to you if you do not qualify for the Lifeline or Domestic tariff. The monthly costs apply as follows:</p><ul><li>0 – 600 kWh: R298.70 c/kWh (excl. VAT) or R343.51 c/kWh (incl. VAT)</li><li>>600 kWh: R413.38 c/kWh (excl. VAT) or R475.39 c/kWh (incl. VAT)</li><li>Monthly Home User service charge of R245.03 (excl. VAT) or R281.78 (incl. VAT)</li></ul>
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<i class="info fastfact"></i></div><div class="desc"><h4>HOME USER CHARGE</h4><p>
<b></b>The Home User charge is a monthly service charge that applies to all customers on the
<strong>Home User tariff </strong><strong>only</strong>. The charge will appear as a separate line item on your rates account. The monthly charge for 2024/25 is R245.03 (excl. VAT) or R 281.78 (incl. VAT). This charge is being used to cover the cost of maintaining the electricity network and other costs not dependent on the amount of electricity used. To offset this cost, customers will pay less per unit of electricity for the first 600 kWh of usage per month.</p></div></div></span>
<p>No free basic electricity allocation applies for the Home User tariff.</p><p>The following criteria apply to this tariff:<br></p><ul><li>Your municipal property valuation is R1 000 000 and above</li><li>A credit meter is installed<br></li></ul><div class="mobile-scroll"><table width="100%" class="ms-rteTable-default" cellspacing="0" style="text-align:center;">
<caption><strong>Example of average monthly account billing on the Home User tariff</strong></caption>
<thead><tr class="ms-rteTableHeaderRow-default"><th class="ms-rteTableHeaderEvenCol-default"><strong>Units received (kWh)</strong><br></th><th class="ms-rteTableHeaderOddCol-default">
<strong>2023/24</strong></th><th class="ms-rteTableHeaderEvenCol-default" colspan="1">2024/25<br></th><th class="ms-rteTableHeaderOddCol-default">
<strong>% increase</strong></th></tr></thead><tbody><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">250</td><td class="ms-rteTableOddCol-default">R1 023,54<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R1 140,56<br></td><td class="ms-rteTableOddCol-default">11,43%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">450</td><td class="ms-rteTableOddCol-default">R1 640,70<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R1 827,58<br></td><td class="ms-rteTableOddCol-default">11,39%</td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">600</td><td class="ms-rteTableOddCol-default">R2 103,57<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R2 342,84<br></td><td class="ms-rteTableOddCol-default">11,37%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">800</td><td class="ms-rteTableOddCol-default">R2 956,69<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R3 293,62<br></td><td class="ms-rteTableOddCol-default">11,40%</td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default">1 000</td><td class="ms-rteTableOddCol-default">R3 809,81<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R4 244,40<br></td><td class="ms-rteTableOddCol-default">11,41%</td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default">1 500</td><td class="ms-rteTableOddCol-default">R5 942,61<br></td><td class="ms-rteTableEvenCol-default" colspan="1">R6 621,35<br></td><td class="ms-rteTableOddCol-default">11,42%</td></tr></tbody></table></div>
<br>
<h4>Further information on tariffs</h4><ul><li>
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/Understanding-residential-electricity-tariffs.pdf" target="_blank">Understanding Residential Electricity Tariffs Guideline</a></li><li>
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Financial%20documents/Electricity%20Consumptive%20Tariffs.pdf" target="_blank">Tariff Schedule for Residential Electricity</a></li></ul><p>Find out how you can
<a href="https://www.capetown.gov.za/Family%20and%20home/Residential-utility-services/Residential-electricity-services/saving-electricity"> save electricity</a>.</p>
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<i class="info note"></i> </div><div class="desc"><h4>BUYING PREPAID ELECTRICITY</h4><p> 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.</p><p>
<br>Find out more about
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Forms%2c%20notices%2c%20tariffs%20and%20lists/Prepaid%20Electricity%20Purchases.pdf" target="_blank">the best way to buy prepaid electricity</a> and visit our
<a href="https://www.capetown.gov.za/City-Connect/Pay/Municipal-accounts/Electricity/Buy-electricity">Buy prepaid electricity</a> page.</p><p> </p></div></div></span>
<h2 class="sectHeading">Commercial electricity tariffs</h2><p>Commercial electricity tariffs are charged according to power usage.</p><h4>As a commercial or industrial electricity customer, the following tariffs apply:</h4><ul><li>Small Power User 1 (high consumption)</li><li>Small Power User 2 (low consumption)</li><li>Small Power User 3 (ultra-low consumption)<br></li><li>Large User LV Time-of-Use tariff <br></li><li>Large User MV Time-of-Use tariff <br></li><li>High Voltage Time-of-Use (where appropriate)<br></li><li>Investment Incentive Tariffs – these are only for approved customers in terms of the
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Bylaws%20and%20policies/Investment%20Incentives%20Policy.pdf" target="_blank">City’s Investment Incentive Policy</a>.</li></ul><p>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.</p><p>See the
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Financial%20documents/Electricity%20Consumptive%20Tariffs.pdf" target="_blank">Electricity Consumptive Tariffs </a>annexure for a detailed breakdown of all applicable charges.</p>
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<i class="info note"></i> </div><div class="desc"><h4>Please note</h4><p>
<b></b>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.<br></p></div></div></span>
<p>For further information, see our
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/Understanding-SPU-tariffs.pdf" target="_blank">Understanding Commercial SPU Electricity Tariffs Guideline</a>.</p><h4> Tariff resources</h4><p>Relevant terms and conditions regarding which tariff or group of tariffs may be applicable can be found in our
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Bylaws%20and%20policies/Tariff%20Policies.pdf" target="_blank">Tariff Policies </a>document. You can see all tariffs and Time-of-Use details in our tariff schedule in the document download section below.<br>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.</p>
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<i class="info citycard"></i></div><div class="desc"><h4>City Connect</h4><p>
<b>
<a href="https://www.capetown.gov.za/City-Connect/Register/eservices-and-municipal-accounts/Register-for-a-municipal-account">Register for e-Services</a></b></p></div></div></span>
<h2 class="sectHeading">Frequently asked questions</h2><p>Please consult our <a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/Electricity_FAQs.pdf" target="_blank">Electricity Tariffs FAQ</a> for further tariff-related information. </p><h4>How do we decide on the electricity price?</h4><p>We consider the following factors:<br></p><ul><li>Changes in customers’ usage patterns</li><li>Proposed Eskom price increases</li><li>The economic outlook/inflation</li><li></li><li>The
<a href="https://www.capetown.gov.za/Departments/Electricity%20Generation%20and%20Distribution%20Department">Electricity Generation and Distribution Department's</a> operating and maintenance costs</li></ul>
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<i class="info note"></i> </div><div class="desc"><h4>Please note</h4><p>Cape Town’s electricity tariffs have been formulated in accordance with the Local Government: Municipal Systems Act and Local Government: Municipal Finance Management Act. <br></p></div></div></span><span>
<h2 class="sectHeading">City Connect</h2>
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<i class="info citycard"></i></div><div class="desc"><h4>You may also want to:</h4><p>
<a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/Apply-for-a-prepaid-electricity-meter">Apply for a prepaid electricity meter</a></p><p>
<a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/apply-for-an-upgrade-to-a-new-prepaid-electricity-meter">Upgrade to a new prepaid electricity meter</a></p><p>
<a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/Apply-for-an-electricity-connection">Apply for an electricity connection</a></p><p>
<a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/apply-for-authorisation-to-install-a-small-scale-embedded-generation-system">Apply for authorisation to install a SSEG system<br></a><a href="https://www.capetown.gov.za/City-Connect/Apply/Municipal-services/Electricity/Apply-for-a-standby-generator">Apply for a standby generator</a></p></div></div></span>
<h2 class="sectHeading">Contact us</h2>
<h4><a href="https://www.capetown.gov.za/Departments/Electricity%20Generation%20and%20Distribution%20Department">Electricity Generation and Distribution Department</a></h4>
<p>
<em>Telephone:<br><a>0860 103 089</a></em></p>
<p>
<em>Email:<br><a href="mailto:power@capetown.gov.za">power@capetown.gov.za</a></em></p></span> | | GP0|#e67fdc7b-aa75-426d-99ba-0fd636557964;L0|#0e67fdc7b-aa75-426d-99ba-0fd636557964|The cost of electricity;GTSet|#ef3a64a2-d764-44bc-9d69-3a63d3fadea1;GPP|#034940d1-0e3a-4366-8246-c524fcee34b2;GPP|#a3964d56-b74d-4d64-95c1-ff381a88a277;GPP|#245ec7aa-a528-4cd3-bcac-597c292db711;GP0|#45e2f582-dcec-4e2b-966c-fd8f90fda7a8;L0|#045e2f582-dcec-4e2b-966c-fd8f90fda7a8|The cost of electricity;GPP|#9a52d66f-57c1-4cb8-b297-6994dd682ede;GPP|#99fac000-f3ac-4774-9ffd-e5e59a130e21;GPP|#e88ff549-973f-4e3c-a46c-cfbe61bd6a24 | | | | | | | | | | | | | | | | Residents are charged according to a Lifeline, Domestic or Home User tariff. Find out which tariff applies to you. | 0 |
