| Prepaid electricity: Tips to save and myths busted | Prepaid electricity: Tips to save and myths busted | | <img alt="" src="https://resource.capetown.gov.za/cityassets/PublishingImages/Prepaid%20Meter%20Header.jpg" style="BORDER:0px solid;" /> | <p>Where every Rand counts, the City wants to ensure that residents are equipped with the correct information - from practical savings tips to busting common myths about prepaid electricity purchases.</p> | <span><p>‘We are committed to assisting prepaid electricity customers take control of their electricity usage by sharing useful information and practical electricity savings tips. City customers are either on the Home User tariff which has a fixed and usage part, or on the Domestic Tariff which now also includes a fixed and usage part or they are on the highly subsidised Lifeline tariff to ensure that we support indigent customers, our indigent pensioners and social grant recipients. In general, since 1 July, City customers have experienced price relief in the usage part of the tariff to help with the fixed charges. These charges are vital to cover the cost of service provision, irrespective of how little or how much of a service is used as it costs the City the same to provide it. It is important to note that regardless of your electricity consumption, the maximum total monthly bill increase is R109,09 for residents on the Home User Tariff and R70,33 for residents on the Domestic Tariff, VAT included. Many customers will see a lower increase in rands and also decreases especially at higher levels of consumption. </p><p>‘If residents are unsure about which electricity tariff they are on, or for assistance and customer support, we encourage them to visit the City’s website where a range of helpful resources are available. Alternatively, residents may refer to their July 2025 municipal bill, which includes comprehensive tariff related information or contact the City’s Call Centre for further assistance.<br></p>
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<img class="responsive" src="https://resource.capetown.gov.za/cityassets/Media%20Images%202/ijpaFl41.png" alt="" style="width:988px;" /> </figure></span><span><p>‘One of our most important tips is never to buy electricity in bulk. Buying in bulk could push customers into a more expensive tariff band. It is advised to buy smaller amounts as needed and to try keep below 600 units per month to stay in the Block 1 of the tariffs. Across the board, if one uses less, one can bring costs down to help manage household bills. One key usage intervention is to only switch on the geyser for an hour or two per day and to reduce water heating. Around 75% of the City’s tariff income goes towards the City’s bulk electricity purchases from Eskom and the remaining 25% goes towards providing the service. This includes the cost of infrastructure expansion and maintenance, staff related costs and security,’ said the Mayoral Committee Member for Energy, Alderman Xanthea Limberg.<br></p>
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<img class="responsive" src="https://resource.capetown.gov.za/cityassets/Media%20Images%202/NG9TGwRE.jpeg" alt="" style="width:1287px;" /> </figure><p><img alt="" style="margin:5px;" /></p><span><p>Residents residing in Eskom supplied areas need to approach Eskom for their tariff information. For Eskom tariffs, please refer to the Eskom website.<br> <br>The City’s special electricity price protection still continues for residents.<br> </p><ul><li><div style="text-align:left;">Lifeline customers using 600 units per month still pay roughly the same as they did three years ago.</div></li><li><div style="text-align:left;">Lifeline customers receive either 25 or 60 units Free Basic Electricity if they have a prepaid meter installed and depending on their consumption level.</div></li><li><div style="text-align:left;">Customers can exceed 450 units during high-demand winter months, and still qualify for Lifeline rates, provided that their 12-month average stays at or below 450 units.</div></li></ul><p>Contact the City’s Call Centre to get your prepaid meter.<br></p>
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<img class="responsive" src="https://resource.capetown.gov.za/cityassets/Media%20Images%202/qZFz8MqY.jpeg" alt="" style="width:1143px;" /> </figure></span><p>Saving tips for prepaid electricity customers<br> <br>Buy only what you need</p><p>Avoid purchasing electricity in bulk, as far as possible. Rather buy smaller amounts as needed, as bulk purchases could push customers into the higher second block, resulting in a higher cost per unit. The City has three residential tariff categories comprising of the Lifeline tariff, the Domestic tariff, and the Home User tariff. For more information , please visit: <a href="https://resource.capetown.gov.za/documentcentre/Documents/Graphics%20and%20educational%20material/Budget2025-26-Electricity-tariffs-Overview-pamphlet.pdf">https://resource.capetown.gov.za/documentcentre/Documents/Graphics%20and%20educational%20material/Budget2025-26-Electricity-tariffs-Overview-pamphlet.pdf</a> <br> <br>1. Monitor your monthly usage and costs<br>Track the number of units you purchase and use each month This can assist you to understand your consumption patterns and to stay within your planned budget. Tip: Your monthly electricity purchases are reflected on your municipal bill.<br> <br>2. Use electricity wisely – small behavioural changes can lead to savings</p><ul><li><div style="text-align:left;">Limit geyser usage to one to two hours per day or reduce the thermostat setting to 60oC, In many homes, the geyser accounts for approximately up to 60% of electricity costs. </div></li><li><div style="text-align:left;">Take shorter showers to further reduce geyser related expenses</div></li><li><div style="text-align:left;">Use energy efficient appliances, and replace lightbulbs to LEDs where possible</div></li><li><div style="text-align:left;">When boiling the kettle, only boil the amount needed</div></li><li><div style="text-align:left;">For more tips to save electricity and money visit: <a href="http://www.capetown.gov.za/savingelectricity" target="_blank">www.capetown.gov.za/savingelectricity</a> </div></li></ul><p> Here are some common myths about prepaid electricity meter purchases <br></p><table width="100%" class="ms-rteTable-default" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" style="width:50%;"><strong>Myths</strong></td><td class="ms-rteTableOddCol-default" style="width:50%;"><strong>The truth</strong></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default"><p><strong>Myth 1 </strong></p><p><strong>You pay more per unit of electricity when you use electricity in winter, or during the peak hours in the evening</strong></p></td><td class="ms-rteTableOddCol-default"><p><br><br>The price remains the same no matter the time of day or the season. Electricity tariffs do not differ according to the time of day or time of year. Typically in winter, household usage goes up. </p></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default"><strong>Myth 2 </strong><br><br><strong>You should buy units on the 1</strong><strong><sup>st</sup></strong><strong> of the month, because the rate per unit increases during the month. </strong></td><td class="ms-rteTableOddCol-default"><p><br>This is not true. The City has an inclining block tariff - the tariff resets on the 1<sup>st</sup> of the new month<strong>.</strong></p><p>It is important to note that the tariff that applies to you is determined by: </p><ul style="list-style-type:disc;"><li>the value of your property (but not location specifically); </li><li>the type of electricity meter you have;</li><li>whether you are registered for receiving a rates rebate and indigent relief (i.e. pensioners, social grant recipients;</li><li>and your monthly purchases (calculated on a 12-month average). </li></ul></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default"><p><strong>Myth 3</strong></p><p><strong>Prepaid electricity is more expensive than credit purchases</strong><strong>/postpaid purchases. </strong></p></td><td class="ms-rteTableOddCol-default"><p>This is not true. </p><p>Electricity is not more expensive via a prepaid electricity meter and customers do not get fewer units for the same price on prepaid. A prepaid meter merely measures the usage and does not consume the customer's electricity in the meter.</p><p>A prepaid meter allows residents to limit their usage as far as possible and to manage their household </p><p>expenditure.</p></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default"><p><strong>Myth 4</strong></p><p><strong>I am losing units via the 'utility charge' or 'Service and wires charge' or fixed charge when purchasing prepaid electricity.</strong></p></td><td class="ms-rteTableOddCol-default"><p>City customers have experienced a reduced <strong>unit cost</strong> since 1 July 2025.</p><p>The electricity tariff comprises a usage cost and a fixed cost to form the entire tariff. Fixed charges are necessary because the City requires a portion of reliable, fixed revenue to make long-term infrastructure investments, equipment, and network maintenance.</p><p>This means residents can save by consuming less, while still ensuring that all ratepayers contribute to Cape Town's infrastructure and fixed service costs. </p><p><strong>Fixed charges: How it works</strong></p><p><strong>New fixed charge in the Domestic tariff </strong></p><p>• Customers now pay a total R59,90 (VAT excl.) fixed</p><p>charge per month, called the Services and Wires Charge.</p><p>• The charge is divided into a daily rate of R1,97.</p><p>• With each electricity purchase, customers pay for the number of days since the last purchase.</p><p>• Example: a customer buying electricity every 15 days will</p><p>pay 15 x R1,97 = R29,55 in fixed charges (R59,90 for</p><p>30 days).</p><p><strong>Depending on the vendor, the fixed charge could be displayed as 'utility charge' or 'Service and wires charge' or fixed charge.</strong></p><p>Regardless of your electricity consumption, the maximum total monthly bill increase is R109,09 on the Home User Tariff and R70,33 on the Domestic Tariff, VAT included. Many customers will see an even lower increase in rands and also decreases especially at higher levels of consumption.</p></td></tr></tbody></table><p><br> </p></span><p>For more information on the cost of electricity, please visit: <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.pdf </a>(capetown.gov.za)<br> <br> For Eskom-supplied customers tariff information, please visit: <a href="https://www.eskom.co.za/distribution/tariffs-and-charges/" target="_blank">https://www.eskom.co.za/distribution/tariffs-and-charges/</a> <br> <br>Assistance is available for qualifying customers: <br> <br>Contact:<br>Debt write off: <a href="mailto:payment.arrangements@capetown.gov.za" target="_blank">payment.arrangements@capetown.gov.za</a> <br>Rates rebates: <a href="mailto:rates.rebate@capetown.gov.za" target="_blank">rates.rebate@capetown.gov.za</a> <br>Indigent help: <a href="mailto:indigent.relief@capetown.gov.za" target="_blank">indigent.relief@capetown.gov.za</a> <br>Call centre: 0860 103 089<br> <br>For electricity enquiries: <a href="mailto:Electricitycustomer.support@capetown.gov.za" target="_blank">Electricitycustomer.support@capetown.gov.za</a> <br> </p><p>End</p><p><br> </p> | 2025-08-12T22:00:00Z | GP0|#1d539e44-7c8c-4646-887d-386dc1d95d70;L0|#01d539e44-7c8c-4646-887d-386dc1d95d70|City news;GTSet|#62efe227-07aa-45e7-944c-ceebacca891d | | | | | GP0|#0e994e93-10d7-4d22-9cd5-ea3dd0048ffe;L0|#00e994e93-10d7-4d22-9cd5-ea3dd0048ffe|prepaid electricity;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb;GP0|#b195be29-9300-4dc7-ac99-92629ce847ac;L0|#0b195be29-9300-4dc7-ac99-92629ce847ac|electricity;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb;GP0|#39f5dc6c-59e0-4685-9994-5944c0b8bd40;L0|#039f5dc6c-59e0-4685-9994-5944c0b8bd40|electricity tariffs;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb | 1 | | | | | | | | | | | 0 |
