The cost of electricity
Your electricity cost depends on your tariff, how much electricity you use, and any fixed, demand or network-related charges that apply.
Your electricity cost depends on your tariff, how much electricity you use, and any fixed, demand or network-related charges that apply. Residential and commercial tariffs are structured differently.
Electricity tariffs cover the cost of buying electricity, delivering it through the City’s network, maintaining and upgrading infrastructure, metering and billing customers, keeping capacity available, and supporting qualifying households.
Continue reading to find out how this works for residential and commercial properties.
Residential electricity tariffs
Residential electricity tariffs apply to customers in the City of Cape Town electricity supply area. The tariff that applies to you is determined by:
- your average monthly electricity use (calculated over a 12-month period);
- the municipal valuation of your property (to determine the extent of rebates or relief applied to qualifying customers);
- the type of electricity meter you have;
- and whether you are registered for indigent relief or receive a rates rebate as a property owner dependent on a pension or social grant.
The 2026/27 residential electricity tariffs are in effect from 1 July 2026 for customers in the City of Cape Town supply area. For Eskom tariffs, please refer to the Eskom website.
The four tariffs and their respective costs and benefits are listed below:
Lifeline tariff
The Lifeline tariff is a highly subsidised residential electricity tariff for qualifying prepaid customers with limited means.
- No Services and Wires Charge applied 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 recognised old age homes run by registered 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.
Free basic electricity
Qualifying Lifeline customers receive either 60 kWh or 25 kWh of free basic electricity each month, depending on their average monthly electricity use.
Energy charge
After the free basic electricity allocation has been used, electricity is charged at the Lifeline rate:
| Monthly use | Rate excluding VAT | Rate including VAT |
|---|---|---|
| Up to 600kWh (After the free 60kWh or 25kWh allocation) | 246.12 c/kWh | 283.04 c/kWh |
| Above 600kWh | 246.12 c/kWh | 283.04 c/kWh |
- The same Lifeline energy rate applies above 600 kWh.
- To remain on the Lifeline tariff, your average monthly electricity use over a 12-month period must be 450 kWh or less.
- 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.
| Units received (kWh) | 2025/26 | 2026/27 | % increase |
|---|---|---|---|
| 60 | R0.00 | R0.00 | Unchanged |
| 150 | R234.46 | R254.74 | 8.65% |
| 250 | R494.97 | R537.78 | 8.65% |
| 350 | R846.66 | R919.88 | 8.65% |
| 450 | R1 107.17 | R1 202.92 | 8.65% |
| 600 | R1 497.93 | R1 627.48 | 8.65% |
| 750 | R1 888.70 | R2 052.04 | 8.65% |
Domestic tariff
The Domestic tariff is a residential prepaid tariff for customers who do not qualify for Lifeline support, or who no longer qualify because their average electricity use is above 450 kWh per month, measured over 12 months.
There is no free basic electricity allocation on the Domestic 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
Services and Wires Charge
A monthly Domestic Services and Wires Charge of R65.02 per month (excl. VAT) or R74.77 (incl. VAT) applies. This charge is recovered through the Vending System as a daily amount based on the number of days since your previous electricity purchase.
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Daily charge recovered through prepaid purchases | R2.14 per day | R2.46 per day |
Energy Charge
| Monthly use | Rate excluding VAT | Rate including VAT |
|---|---|---|
| Up to 600kWh | 359.82 c/kWh | 413.79 c/kWh |
| Above 600kWh | 429.48 c/kWh | 493.90 c/kWh |
| Units received (kWh) | 2025/26 | 2026/27 | % increase |
|---|---|---|---|
| 250 | R1 046.24 | R1 109.25 | 6,02% |
| 450 | R1 828.12 | R1 936.83 | 5,95% |
| 600 | R2 414.53 | R2 557.51 | 5,92% |
| 800 | R3 344.03 | R3 545.31 | 6,02% |
| 1 000 | R4 273.53 | R4 533.11 | 6,07% |
| 1 500 | R6 597.28 | R7 002.61 | 6,14% |
Home User tariff
The Home User tariff is the standard residential tariff structure. It includes a monthly Services and Wires Charge, as well as energy charges based on the amount of electricity used.
- This tariff applies to residential customers where the Lifeline or Domestic tariff does not apply.
- There is no free basic electricity allocation on the Home User tariff.
The following criteria apply to this tariff:
- A credit meter (conventional or AMI) is installed, regardless of municipal property valuation; or
- A prepayment meter is installed, and your municipal property valuation is greater than R1 000 000.
Services and Wires Charge
A monthly Home User Services and Wires Charge applies. This charge is recovered via a rand per month charge on the billing system.
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Services and Wires Charge | R368.96 per month | R424.30 per month |
AMI Administration Fee
Where an Advanced Metering Infrastructure (AMI) meter is installed, a monthly AMI administration fee will apply.
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Residential AMI Administration Fee | R5.91 | R6.80 |
Energy Charge
| Monthly use | Rate excluding VAT | Rate including VAT |
|---|---|---|
| Up to 600kWh | 309.52 c/kWh | 355.95 c/kWh |
| Above 600kWh | 407.88 c/kWh | 469.06 c/kWh |
| Units received (kWh) | 2025/26 | 2026/27 | % increase |
|---|---|---|---|
| 250 | R1 235.02 | R1 314.18 | 6,41% |
| 450 | R1 910.34 | R2 026.08 | 6,06% |
| 600 | R2 416.83 | R2 560.00 | 5,92% |
| 800 | R3 300.55 | R3 498.12 | 5,99% |
| 1 000 | R4 184.27 | R4 436.24 | 6,02% |
| 1 500 | R6 393.57 | R6 781.54 | 6,07% |
Residential Time of Use (TOU)
The Residential Time-of-Use (TOU) tariff is an optional residential tariff that lets customers manage their electricity costs by shifting some usage to lower-cost times of the day.
Under a TOU tariff, electricity is charged at different rates depending on when it is used. This tariff may suit customers who can move higher-usage activities to cheaper periods, or who have a battery system that can store electricity for use during peak periods.
- Customers are not moved to this tariff automatically. You must request to be placed on the Residential TOU tariff.
- There is no free basic electricity allocation on this tariff, and the tariff is set to be fully cost reflective.
The following criteria apply to this tariff:
- An Advanced Metering Infrastructure (AMI) meter must be installed to access this tariff. The property owner is responsible for any associated meter conversion and installation costs.
- Customers on this tariff will pay the published Residential TOU charges, as well as the applicable Residential AMI Administration Fee.
This tariff is available to residential customers with or without approved Small-Scale Embedded Generation (SSEG), provided the AMI metering requirement is met.
Services and Wires Charge
A monthly Administrative Charge and monthly Capacity Charge applies. This charge is recovered via a rand per month charge on the billing system.
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Administration Charge | R344.49 | R396.16 |
| Capacity Charge | R250.85 | R288.48 |
AMI Administration Fee
A Residential AMI Administration Fee is applicable to all residential customers with AMI installed, including residential SSEG customers.
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Residential AMI Administration Fee | R5.91 | R6.80 |
Energy charge
With this tariff, electricity is charged at different energy rates depending on the time of day:
- Peak periods (higher cost)
- Standard periods (moderate cost)
- Off-peak periods (lower cost)
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Peak | 781.07 c/kWh | 893.23 c/kWh |
| Standard | 321.12 c/kWh | 369.29 c/kWh |
| Off peak | 261.69 c/kWh | 300.94 c/kWh |
| Rate excluding VAT | Rate including VAT | |
|---|---|---|
| Peak | 363.95 c/kWh | 418.54 c/kWh |
| Standard | 309.22 c/kWh | 355.60 c/kWh |
| Off peak | 261.69 c/kWh | 300.94 c/kWh |
Further information on tariffs
Find out how you can save electricity.
ABOUT THE FIXED CHARGES
Fixed electricity charges reflect the cost of providing access to the electricity grid as a service. This grid service ensures that electricity can be delivered safely and reliably whenever it is needed, regardless of how much electricity a customer uses. The costs of maintaining and operating the electricity network, including infrastructure, repairs and system reliability, are largely fixed and do not vary significantly with each customer’s monthly usage. For this reason, the grid service is treated separately from the electricity itself. Customers pay variable charges for the electricity they consume, measured in kWh. The fixed charge helps recover the cost of keeping the grid available, stable and ready for use. This supports a more reliable and equitable electricity system for all customers.
BUYING PREPAID ELECTRICITY
Your prepaid electricity purchases are charged according to your tariff and the total amount of electricity bought during the month. Buying smaller amounts more often will not reduce your electricity cost, because the vending system keeps track of your total monthly purchases. Buying in bulk also does not give you a cheaper rate. Where block tariffs apply, the rate is based on the total kWh bought in that month, not on the size of each purchase. For better budgeting, try to buy electricity around once a month and only buy the amount you expect to use for that month.
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 (NMD up to 500 kVA; no restrictions on meter type)
- Small Power User 2 (NMD up to 500 kVA; prepayment meter or AMI installed)
- Small Power User 3 (Very small occasional supplies; prepayment meter installed)
- 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
Customers are encouraged to review their usage and tariff options, as it remains their responsibility to select the most suitable tariff for their usage pattern. The balancing point between Small Power User 1 and 2 is approximately 1 400 kWh per month, and between Small Power User 2 and 3 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
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 and Sustainable Energy Markets Department’s operating and maintenance costs (as per the Cost of Supply Study)
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.
City Connect
Contact us
Electricity Generation and Distribution Department
Telephone:
0860 103 089
Email:
ElectricityApplication.Queries@capetown.gov.za / power@capetown.gov.za
Sustainable Energy Markets Department
Document downloads
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.
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
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.
City Connect
Upgrade to a new prepaid electricity meter
Apply for an electricity connection
Apply for authorisation to install a SSEG system
Apply for a standby generator
Contact us
Electricity Generation and Distribution Department
Telephone:
0860 103 089
Email:
power@capetown.gov.za
Document downloads
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