Metro’s electricity tariffs – know what you pay for

The winter is setting in and households may start to count every cent they spent on electricity.

During the winter season, residents may start to question whether they are paying a right electricity tariff, or whether they might not be saving if they were to buy electricity from Eskom instead of the metroy or vice-versa.

According to Themba Gadebe, metro spokesperson, the Ekurhuleni metro provides electricity in areas where it has been licenced by the National Energy Regulator of South Africa to do so.

“There are other selected areas in Ekurhuleni were Eskom has a licence to provide electricity,” said Gadebe.

He said the metro’s electricity tariffs are applicable to those areas where the metro is licensed to supply electricity.

“The tariffs are categorized to fit different circumstances of residents and businesses, such as residents in stand-alone stands, complexes and flats.”

The most prevalent tariff for residents is Inclined Block Rate Tariff (Tariff A IBT).

  • Inclined Block Rate tariff (Tariff A IBT)

Gadebe said this tariff is structured into blocks which increase in price, according to the monthly consumption of a household.

“The first block is for consumption of less than 100 kWh per month, which is allocated for free in terms of the metro’s Free Basic Electricity policy.

“The second block is for consumption between 100 kWh and 600kWh where a R1.05,66 tariff is charged.

“Those who consume into the next block, which is between 600 kWh and 700 kWh are charged R1.79,61 per kWh, after which the tariff becomes R5,02 per kWh.

“The very high final block acts as a ‘signal’ to higher consuming customers that they not be the optimal tariff for their level of consumption.”

He said complexes, body corporates and flats are charged a differently structured tariff called Bulk Residential Complexes (Tariff B), which is applicable to the electricity resellers.

ALSO READ: Increase in tariffs as the metro tables its 2018/19 budget 

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  AUTHOR
Riaan Engelbrecht
Editor

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