Response to prepaid inconsistencies

Leo Neeleman writes:

I have read your article in the Northsider [‘There is no consistency’, week ending 24 October] and the solution is very simple.

Joburg City makes use of a tiered scale of electricity tariffs.

Please look at the following table:

Prepaid 2014-2015 ex Vat Inc Vat Price 500kw

0-500 kWh 0.9426 1.074564 per unit R537.28

500-1000 KWh 1.0709 1.220826 per unit R610.41

1001-2000 kWh 1.1499 1.310886 per unit R655.44

2001-3000 kWh 1.2990 1.48086 per unit R740.43

>3000 kWh 1.4077 1.604778 per unit R802.39

From the above you will notice that the 500KW cost you R537.28, but the 2nd lot of 500KW cost you R610.41, which is about 15 per cent higher than the first. If you buy more than 3 000KW during a particular month, each KW purchased is 49.34 per cent more expensive than the first 500KW. Thus, if you buy first R500 you will receive 465.30KW and follow that up within the same month with another R500 you will only receive 409.55KW, etc. The council keeps track of what you buy in each 30 days period.