Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      The satellite broadband operators taking on Starlink

      9 July 2025

      Yaccarino out: Musk’s handpicked CEO quits X suddenly

      9 July 2025

      AI gold rush propels Nvidia to record $4-trillion market cap

      9 July 2025

      Price hike for .za domains

      9 July 2025

      China’s Temu ups ante with South African warehouse launch

      9 July 2025
    • World

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025

      Bumper orders for Xiaomi’s YU7 SUV heighten threat to Tesla

      27 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » How much you really pay for electricity in South Africa

    How much you really pay for electricity in South Africa

    By Staff Reporter11 January 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    An increase of 31% in fixed charges levied by Johannesburg’s City Power for electricity over the last two years means that post-paid (credit) customers now don’t even get 100kWh of usage for R1 000. Less than 100kWh is an astonishingly low amount.

    The two fixed monthly charges – a network charge and capacity charge – totalled R631.16 including VAT per month in 2019/2020. Today, they total R825.32. This is charged by the metro’s utility regardless of how much electricity is consumed.

    An analysis by Moneyweb in 2019 revealed that Johannesburg residents who are serviced by City Power and are not on prepaid continued to pay the most for electricity among the country’s major metros.

    The situation in Johannesburg is bizarre and increasingly untenable

    But comparing the cost of power at just R1 000 in spending is not entirely fair. Comparing the amount of electricity received for R2 000 removes the distortion of those high fixed charges somewhat.

    At that level, customers in Johannesburg receive about the same amount of electricity as those in eThekwini. This is due to the latter’s high price per kilowatt-hour on its basic tariff plan (rates on time-of-use plans that require smart meters are more reasonable). At these more elevated levels of usage, eThekwini tariffs are as pricey as City Power’s.

    Apples-with-apples comparisons are difficult. The way tariffs are designed across the various metros differs greatly:

    • Some have fixed charges, others don’t;
    • Some have flat-rated tariffs regardless of usage;
    • Those that charge different rates depending on levels of usage (so-called inclining block tariffs) don’t all use the same sized blocks;
    • Tshwane used to bill seasonally with different rates for summer and winter, but this has changed since 2019; and
    • Eskom is included, as sizeable areas in Johannesburg (Sandton and Soweto) are supplied directly by the utility.

    Rather than attempt to compare the base tariff, in other words the cents-per-kilowatt-hour rate, the methodology used here is to calculate how much electricity a household will receive for two amounts: R1 000 and R2 000.

    Again, as pointed out in 2019, this is the lived experience of customers.

    Importantly, fixed charges on some tariff structures distort matters, making a simple comparison between the rates per kilowatt-hour meaningless. This methodology removes this distortion.

    Amount of electricity households receive (2021/2022)
    Tariff R1 000 R2 000
    Eskom Homepower 4 440kWh 862kWh
    Eskom Homelight 548kWh 892kWh
    Cape Town Domestic1 367kWh 710kWh
    Cape Town Home User2 335kWh 710kWh
    City of Jo’burg City Power prepaid 491kWh 884kWh
    City of Jo’burg City Power residential 93kWh 606kWh
    Ekurhuleni Tariff A (prepaid/credit) 548kWh 768kWh
    Ekurhuleni Tariff B (prepaid/credit) 349kWh 722kWh
    eThekwini 238kWh 607kWh
    Tshwane 395kWh 877kWh

    * All kWh amounts rounded down; all amounts include VAT; excludes indigent households. 1 For houses valued at more than R400 000 but less than R1-million. 2 For houses valued at more than R1-million

    The situation in Johannesburg is bizarre and increasingly untenable: post-paid/credit customers pay among the most for electricity across metros, while prepaid customers pay among the least.

    For R2 000 in spend, Johannesburg post-paid customers receive more than 30% less electricity because of the fixed charges.

    The municipality has repeatedly attempted to introduce a R200 (R230 including VAT) monthly surcharge for prepaid customers, but continues to U-turn on the proposals.

    Until it implements some sort of fixed monthly charge, City Power prepaid customers will continue to enjoy among the cheapest electricity across the metros. Effectively, these customers are being subsidised by City Power’s post-paid ones.

    Two-year snapshot

    A further analysis reveals how tariff changes over the past two years have affected how much electricity you will get for the same amount of money.

    It’s not as simple as assuming that two back-to-back annual increases of around 15% would result in 30% less electricity for the same amount of money.

    Metros seldom keep tariff structures the same for long periods of time. Changes are made to methods of charging (block sizes in incline block tariffs are changed, fixed charges are implemented or removed, and so on).

    From this comparison, the biggest declines in the amount of electricity received are for City of Jo’burg post-paid and eThekwini (Durban) customers. It is no surprise that tariffs for these two groups are the highest among the metros.

    How much less bang you’re getting for your buck
    Tariff R1 000 2019/2020 R1 000 2021/2022 Change
    Eskom Homepower 4 571kWh 440kWh -23%
    Eskom Homelight 651kWh 548kWh -16%
    Cape Town Domestic1 436kWh 367kWh -16%
    Cape Town Home User2 414kWh 335kWh -19%
    City of Jo’burg City Power prepaid 575kWh 491kWh -15%
    City of Jo’burg City Power residential 239kWh 93kWh -61%
    Ekurhuleni Tariff A (prepaid/credit) 603kWh 548kWh -9%
    Ekurhuleni Tariff B (prepaid/credit) 454kWh/439kWh 349kWh -23%/-20%
    eThekwini 359kWh 238kWh -34%
    Tshwane 367kWh winter
    440kWh summer
    395kWh 8%/-10%

    * All kWh amounts rounded down; all amounts include VAT; excludes indigent households. 1 For houses valued at more than R400 000 but less than R1-million. 2 For houses valued at more than R1-million

    • This article was originally published by Moneyweb and is republished by TechCentral with permission


    City Power Eskom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleProsus leads R5.3-billion funding round in GoStudent
    Next Article Mteto Nyati resigns as CEO of Altron

    Related Posts

    Medupi unit 4 rejoins grid, easing winter load shedding fears

    7 July 2025

    Eskom unbundling paves way for competitive power market

    7 July 2025

    TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

    4 July 2025
    Company News

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025

    Huawei supercharges South African SMEs with over 20 new eKit products

    9 July 2025

    Webtonic cracks the talent code with AWS-powered TonicHub

    9 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.