The winter is setting in and households may start to count every cent they spend on electricity.
During this season, others may even start to question whether they are paying the correct electricity tariff, or whether they might not be saving if they were to buy electricity from Eskom instead of the metro or vice-versa.
The metro provides electricity in areas where it has been licensed by the National Energy Regulator of South Africa to do so.
There are other selected areas in Ekurhuleni where Eskom has a licence to provide electricity.
The metro’s electricity tariffs are applicable to those areas where the metro is licensed to supply electricity.
The tariffs are categorised to fit the different circumstances of residents and businesses, such as residents on stand-alone stands, in complexes and in flats.
The most prevalent tariff for residents is Inclined Block Rate Tariff (Tariff A IBT).
• Inclined Block Rate tariff (Tariff A IBT):
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 100kWh per month, which is allocated for free in terms of the metro’s free basic electricity policy.
The second block is for consumption between 100kWh and 600kWh where an R1.05 tariff is charged.
Those who consume into the next block, which is between 600kWh and 700kWh are charged R1.79 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 may not be on the optimal tariff for their level of consumption.
Complexes, body corporates and flats are charged a differently structured tariff called Bulk Residential Complexes (Tariff B), which is applicable to the electricity resellers.
These tariffs will increase by between 5.32 per cent and 8.5 per cent from July 1, subject to usage.
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