There are different tariff structures which accommodate consumers depending on their consumer needs. For households, there are mainly two – Tariff A and Tariff B.
Normally households are placed on the first structure, tariff A. However, you do have the option to change to the Tariff B option, should it be in your best interest - depending on how much electricity you use. The more electricity you use the more you will pay for it.
This tariff is an Inclining Block Tariff (IBT) and was a guideline from NERSA and municipalities were advised to implement them nationally.
The tariff has four blocks in which the prepayment units are vended in over and above the 100kWh free basic electricity. On the 1st of each month prepayment units to be vended revert back to the 100 free basic electricity (FBE) which will form part of the first transaction prepayment vending, immaterial if there is a money factor attached to the transaction.
If the consumer tenders money with the first transaction of the month two tokens will be received, the first for the 100FBE and the second for the transaction amount. Most consumers on Tariff A buy units in small amounts. These purchases will progress from the one block to the next block depending on the amount tendered.
Tariff A can explained as follows (all prices include VAT), as per Tariff A IBLT explanation (152.25 kB 2011-01-06) :
- The first 100kWh is free = 100 free basic electricity (FBE)
- The next 50kWh will cost R1, 026 (100 to 150kWh)
- The next 300kWh will be vended at R1, 083 (150 to 450kWh)
- The next 250kWh will cost R1, 311 (450 to 700kWH)
- Everything after the above will be vended at R1, 368
When you buy a certain amount of prepayment units for the first time in a month, the purchase will start vending at the 100FBE at zero cost, then move to the following blocks and eventually end at the fourth block which will be constant until the end of the month.
Tariff A IBLT actual transaction placements (152.55 kB 2011-01-06) is a document where 4 x R200, 00 actual transactions in a month has been mapped on the graph. Note that the next transaction carries on where the previous one stopped. Only 4 x R200, 00 transactions have been mapped to explain the working principle of the IBT (Inclining Block tariff).
Tariff A is cost effective to consumers using prepayment or the conventional type credit meters that use no more than 650kWh per month.
Tariff B will be cost effective to those who use more than 650kWh per month.
If you wish to change from tariff from A to B or B to A you can visit your customer care centre’s electricity department for prepayment meters and the Finance: Income (Billing Section) for credit meters.
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