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Overstrand Municipality's new electricity tariffs and how they affect your pocket

Jul 9, 2018
Overstrand Municipality's new electricity tariffs and how they affect your pocket

HOW DOES THAT IMPACT ON YOUR POCKET?

Electricity costs for Municipalities from Eskom has increased with 6,84% based on increases applicable from 1 July annually. The basic charge for electricity has increased by 9% and to offset this, the unit increases is as follows: first 350 units by 5,8%, the next 250 units by 6,1% and all units above 600, at 6,85%.

The new electricity tariffs came into effect on 1 July 2018.

Electricity block tariffs

"The electricity price is divided into several steps or blocks. The first block of electricity (350 kWh) is at the lowest price. The incline Block tariff has been implemented for all single phase connection electricity (60AMP)," said Overstrand Municipality Spokesperson, Riana Steenekamp.

"This includes households. Residents that make use of prepaid electricity, pays 10c per unit cheaper than those who make use of a credit meter.

"As the customer purchases more electricity during the month, the electricity bought will eventually fall in block 2, which is more expensive."

She said that this process repeats automatically as the customer purchases further electricity to move into Block 3.

"At the end of the month, the history is reset and the customer will again start the next month from Block 1.

"A customer will be put in the higher ‘block’ automatically, depending on the amount of electricity bought / requested, " Steenekamp added.

"Purchasing electricity by means of one or more transactions within one month does not affect the price category, it is the total amount of electricity bought within a calendar month that affects this."  

Know this:
• When using prepaid electricity it is important that you only buy enough electricity for one month.
• Buying electricity in bulk will mean you end up paying more for electricity.
• So only buy the amount of electricity you need for the month. Then wait until the next month and start to buy again at the low price.

To view electricity tariffs, go to www.overstrand.gov.za; click on the tab for Strategic Documents then Budget, scroll down to Annexure C (Rates and Tariffs).

Electricity Purchase Blocks (Domestic - single phase connection)

 

CREDIT METERS

 

 

E1A1

Basic Monthly charge per meter

R

335.34

 

kWH Unit cost

E1A2

IBT BLOCK 1     0 - 350 kWh

c

132.11

E1A3

IBT BLOCK 2 351 - 600 kWh

c

192.99

E1A4

IBT BLOCK 3         > 600 kWh

c

236.92

 

PREPAID METERS

 

 

E1B1

Basic Monthly charge per meter

R

335.34

 

kWH Unit cost

E1B2

IBT BLOCK 1     0 - 350 kWh

c

122.03

E1B3

IBT BLOCK 2 351 - 600 kWh

c

181.86

E1B4

IBT BLOCK 3         > 600 kWh

c

227.73

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