When should you buy electricity? Go Back
Author: Marisan Hallett Date: 27 September 2022
Like many South Africans you may be feeling confused and frustrated when it comes to buying electricity. You may have noticed that the price per unit changes throughout the month, leaving you dazed.
This fluctuation in price and units is due to the block tariff system. Under the system, units are spilt into different blocks. When you buy more electricity than you need or buy electricity as you go through the month, you will be paying more.
Block tariffs system
The National Energy Regulator of South Africa (Nersa) introduced the Incline Block Tariffs (IBT) in 2010. The aim of this system was to protect lower use residential customers against price increases. The system was also to encourage heavy users to reduce their electricity usage.
The IBT system divides the price of electricity into blocks. The first block of electricity is at the lowest price and the more electricity you buy during the month, it will eventually fall into block two. This process is automatic, depending on the amount of electricity acquired. It is important to note that the different municipalities charges different rates.
Splitting the blocks
Blocks are spilt by the power supply:
* kWh = 1 unit
For electricity purchased for the 20Amp tariff, the first block will be for the first 350kWh at R1.61 per kWh. Thereafter the rate increases to R1.82 per kWh. This tariff is applicable to informal settlements and rural areas.
For electricity purchased for the 60A tariff, block one will be for the first 600kWh at R1.82 per kWh. Thereafter the rate advances into the next block at R3.10 per kWh. An average family of two adults and two children, living in a moderate size home will use about 1000kWh per month.
The prices approved by Eskom:
* All prices include VAT
When to buy your electricity?
At the end of the month, your electricity purchases will reset, and you will fall back into block one at the beginning of the new month. This is the best time to buy electricity. To get the most out of your money, monitor your usage and buy electricity accordingly. Manage your electricity usage by practising good energy efficiency for example using LED lights and managing your geyser.
