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Use electricity wisely

The Addie received numerous calls about the difference in the cost of electricity units bought for the exact same amount over the past two weeks.

The metro responded by explaining the difference between tariff A and tariff B as well as low and high consumption electricity purchasing.

Themba Gadebe, spokesperson for the Ekurhuleni metro, says if two customers buy prepaid tokens at R50 each from the same vendor, and they are both on the tariff A inclining Block Tariff (IBT), they might not receive the same amount of units.

One customer might be a low consuming, low purchasing, customer and the other, a high consuming, high purchasing, customer, however, both are still in block one of tariff A IBT.

The cost per unit for low consumption is R0.96, VAT inclusive, rounded off on block one.

He says if this customer buys a token worth R50 he will receive 52.30kWh units.

Whereas a high consuming customer, buying for the same amount (R50), will pay R4.56 VAT inclusive rounded off per unit.

Therefore, he says, this customer will only get R11kWh units.

Tariff A IBT is an inclining block tariff, therefore the more you buy, the more expensive the cost per unit becomes.

Residential customers have an option between tariff A IBT and tariff B.

“Tariff A IBT has three rate blocks,” he says.

The first is R0.96 for zero to lower than 600kWh with the first 100kWh at R0.00 and the remaining 500kWh at the block rate.

Then it is R1.63 for 600kWh to 700kWh and the third block will cost R4.56 for all units above 700kWh units.

Gadebe says tariff B is a flat rate at R1.45.

“The cost point in terms of cost effectiveness between the two tariffs is at 819.75kWh units at a cost of R1 186.63.

“Therefore, if your purchases and consumption per month is below 819.75 then tariff A is cost-effective, but if the purchases and consumption per month is more than 819.75 then tariff B will be cost-effective,” he adds.

According to him consumers are allowed to change their tariff once per year.

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