Here's how to save on energy costs
25 August 2023
Households can reduce monthly household bills by making a few tweaks to their utility usage and by taking the power of energy costs into their hands. Simply by reducing the geyser temperature, residents can save significantly on their monthly energy costs. Residents can also time their purchases and install LED light fittings, among a number of other no and low-cost ideas.
'Eskom's 18,5% increase has driven up the cost to supply electricity and is impacting households. By developing no-cost smart energy use habits, households can start saving on their electricity bill. It's possible for residents to save even more by adding a few low-cost ways to save. The City has developed smart energy use habits making it possible for everyone to play their part in more efficient usage. Adopting energy-saving practices will not only save money, it will also help us to all live in a more sustainable manner and to contribute to greater energy security. There are no-cost, low-cost and higher investment cost options to suit every pocket. It is possible for residents to save:
- Up to 30% saving on the bill with no and low- cost solutions
- As much as 50% if residents also include invest-to-save options like solar water heating or heat pump
'If residents are able to spend money on making smart changes around their home, they are encouraged to consider installing a solar water heater or heat pump, among others. These will cost more upfront but residents could save much more on their monthly electricity costs. Please visit savingelectricity.org.za for more no-cost, low-cost and invest-to-save smart tips,' said the City's Mayoral Committee Member for Energy, Councillor Beverley van Reenen.
Tips to manage household bills:
- Reduce your geyser's temperature to 60 degrees Celsius to reduce costs.
- Buying electricity in bulk is not cheaper. Rather buy small amounts as required to stay on the cheaper tariff band.
- Use less, pay less for both water and electricity.
- Make use of energy efficient light bulbs like LEDs.
- Limit purchases to below 600 kWh per month.
- Install prepaid meter to give greater control and measurement.
We are ready to help indigent households, social grant recipients and pensioners. Households with a property value under R500 000 pay the least for electricity in Cape Town compared to South Africa's other cities in 2023/24. This year, Cape Town also raised the number of units that can be bought at a cheaper, subsidised rate, from 350 to 600 units per month on the lifeline tariff. This will especially help households using more in winter.
We have expanded the qualifying threshold for pensioners and social grant recipients to enable additional residents to benefit from the Lifeline Tariff and rates rebates, with the qualifying limit now increased to a monthly income of R22 000, up from R17 500. The City has also increased the social support package to R4,3 billion in total for rates and services relief for 2023/24.
Everyone under the R7 500 monthly household income threshold and owners of residential properties with a municipal valuation of R450 000 and less will get a 100% rebate for property rates and refuse removal, benefitting about 192 500 households across Cape Town.
All residential properties valued at R5 million and under are also receiving a R450 000 reduction in the property valuation for rates calculation purposes. More than 700 000 properties are expected to benefit, representing 80% of all properties in the metro.
We encourage residents to visit their nearest customer office to see if they qualify for support.
| Common myths busted and how buying electricity units in the right way can reduce costs | |
| MYTH | TRUTH |
| You should buy as many units as you can in one go as they are cheaper in bulk. | Buying in bulk is not cheaper! Only buy what you need! You should only buy what you need in a given month – this will keep your costs down. When buying in bulk, you move onto the second block for units above the monthly usage threshold, which is more expensive. So, buying in bulk can be considerably more expensive. |
| You should rather make many small purchases in the month so that you stay within the cheapest block rate with each purchase. | Many small purchases could cost you more! The rate applied on each purchase is dependent on previous purchases in the month (i.e. it accumulates). Once the first block is bought up, you automatically move to the second block irrespective of the number of times you made a purchase. |
| Monthly totals are based on how much you use, not on how many units you buy at a time. | It is about how many units you buy. Prepaid meters are not intelligent meters. The meter merely accepts tokens and then reduces as the units are consumed. When buying electricity at a vending station, our computer server determines what has been bought previously in the month and what block rate to apply to the purchase of electricity for the given amount. |
| You pay more per unit when you use electricity in winter months or during peak hours in the evening. | Residential tariffs are the same, no matter the time or season. Residential tariffs do not differ according to the time of the day or the year when electricity is consumed.
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Published by:
City of Cape Town, Media Office