Prepaid electricity likely to cost less every month

With the new financial year in full swing, rates are going up and residents are considering cheaper alternatives, such as installing prepaid meters.

According to the Randburg Sun, City Power’s spokesperson Virgil James said prepaid customers could very well save more than postpaid customers, since they do not have to pay fixed monthly charges. If one decided to install a prepaid meter one would no longer have to pay the service charge. This charge contributes towards fixed costs like meter reading, billing and meter capital expenditure and network charges – all of which contribute towards the maintenance of the network.

Both these charges form a monthly fixed charge for postpaid customers and not for prepaid customers. Although unit charges are around five percent higher for prepaid customers, they save the R114.57 service charge and between R337.52 to R462.33 for the network charge.

“While a prepaid customer pays slightly more than a postpaid customer per kilowatt/hour unit under domestic tariffs, a prepaid customer saves on service charges and network charges,” said James.

Picture: Soweto Urban

The demand side management levy, however, is unavoidable. This levy is a charge that supports demand side management projects, or how City Power balances electricity demand across Johannesburg. Residential units, however, are exempted from the 500kW/hour for this levy.

If you do not have a prepaid meter but wish to install one you can apply for it and be quoted on single or three-phase, and whether you have a smart meter or an old postpaid meter.

The costs include:

• If you have a single phase or three-phase with a smart meter, the installation will cost you R1 368
• If you have three-phase and an old meter, you can expect to pay around R5 000
• If you have a single phase and an old meter, payment is around R2 700.

City Power does not permit residents to install prepaid meters themselves. The entity is responsible for this.

Details: City Power prepaid queries call 011 490 7484; estimations@citypower.co.za

– Caxton News Service

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