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This is how Eskom's billing works
- Thread starter Hanno Labuschagne
- Start date
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- Tags
- electricity bills eskom
wingnut771
Honorary Master
The point of my question was did they always have a "network charge". I don't think so, and were added when the prices started going up when they started building the new power stations and IMHO, the costs of maintaining the network should come out of the electricity unit price like they always have AFAIK.
yebosa
Active Member
Eskom's right rural rip off.
Small properties in rural areas are being hit hard by Eskom's supply charges.
Many people who live on small properties outside of the Municipal power supply area and are therefore direct Eskom customers. They are subject to large additional charges over and above the cost of the electricity used per month.
These additional monthly charges are fixed irrespective of the amount of electricity used.
Fixed charges include:
Service Charge and Network Capacity Charge. These are billed before a single unit of power is used.
Take for example a small holding. Most of these places have 25KVA 3 phase power. This entails a transformer on the property with 3 phases of 230 volts per phase. Many of these transformers have been in place for 20 years or more.
It is estimated that the average household uses somewhere between 600 & 900 kWh per month. So, in this example I will use 750 kWh as an average
Under the current tariff structure (Aug 2021) the Eskom bill for 31 days would be R4,015.97. This translates to a cost of R5.35 per kWh
The table below shows the breakdown for 750Kwh including VAT @ 15%
The items in RED are fixed charges and the ones in BLUE are calculated on the power used.
As you can see the actual power used is less than a third of the invoice. The fixed charges are 62% of the invoice total.
If no power was used for the entire month, then the invoice would be as follows.
If the Network Capacity charge relates to the transformer and the Service charge is for ongoing line maintenance and repairs, and all the increases charged have been in line with inflation, you get the following.
If the transformer has been installed on a property for 20 years, that would be R38 x 365 days x 10 years. You get a figure of R277,400.
Similarly, the maintenance and repair charges for the same period would be R220.242
Added together that amounts to “Fixed Charges” of R500,000 over 20 years without any power usage at all.
Eskom needs to change the tariffs imposed on small consumers to ease the financial burden.
Small properties in rural areas are being hit hard by Eskom's supply charges.
Many people who live on small properties outside of the Municipal power supply area and are therefore direct Eskom customers. They are subject to large additional charges over and above the cost of the electricity used per month.
These additional monthly charges are fixed irrespective of the amount of electricity used.
Fixed charges include:
Service Charge and Network Capacity Charge. These are billed before a single unit of power is used.
Take for example a small holding. Most of these places have 25KVA 3 phase power. This entails a transformer on the property with 3 phases of 230 volts per phase. Many of these transformers have been in place for 20 years or more.
It is estimated that the average household uses somewhere between 600 & 900 kWh per month. So, in this example I will use 750 kWh as an average
Under the current tariff structure (Aug 2021) the Eskom bill for 31 days would be R4,015.97. This translates to a cost of R5.35 per kWh
The table below shows the breakdown for 750Kwh including VAT @ 15%
The items in RED are fixed charges and the ones in BLUE are calculated on the power used.
Daily | 31 Days | ||
Service Charge | 31.54 | 1124.40 | 28% |
Network Capacity Charge | 37.98 | 1353.99 | 34% |
Demand Charge | 0.3553 | 306.45 | 8% |
Ancillary Charge | 0.0055 | 4.74 | 0% |
Energy Charge | 1.4219 | 1226.39 | 31% |
Total | 4015.97 |
As you can see the actual power used is less than a third of the invoice. The fixed charges are 62% of the invoice total.
If no power was used for the entire month, then the invoice would be as follows.
Daily | 31 Days | ||
Service Charge | 31.54 | 1124.40 | 45% |
Network Capacity Charge | 37.98 | 1353.99 | 55% |
Demand Charge | 0.3553 | 0.00 | 0% |
Ancillary Charge | 0.0055 | 0.00 | 0% |
Energy Charge | 1.4219 | 0.00 | 0% |
Total | 2478.39 |
If the Network Capacity charge relates to the transformer and the Service charge is for ongoing line maintenance and repairs, and all the increases charged have been in line with inflation, you get the following.
If the transformer has been installed on a property for 20 years, that would be R38 x 365 days x 10 years. You get a figure of R277,400.
Similarly, the maintenance and repair charges for the same period would be R220.242
Added together that amounts to “Fixed Charges” of R500,000 over 20 years without any power usage at all.
Eskom needs to change the tariffs imposed on small consumers to ease the financial burden.
wingnut771
Honorary Master
Why don't you stop paying Eskom, let them cut you off and get a loan for R4000 per month and go off-grid and pay the loan off in a couple of years then have free electricity?
yebosa
Active Member
The banks wont lend me the money due to my age and also because I own my property and don't have a bond. Been down that route. Dead End.
grok
Honorary Master
Expected really, the assault is on all fronts: top level steal & destroy with Zuptas & state capture. Low level its burning & looting. Leaves municipal extortion and land grabs for the rest.
Deconolization 101..
Deconolization 101..
At these prices any actions taken will be worth it, a "barely enough" solar system with generator backup, almost entirely gas appliances will rid you of eskom's tyrany fast.
John Tempus
Executive Member
- Joined
- Aug 8, 2017
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We are paying closer to R3/kwh simply because we just barely hit one tier too high.
Eskom also reduced the allowance per tier in recent months/years so in no time unless you keep an eye on it every single day/week/month you can easily fall right back into a higher tier without doing anything different.
The Magster
Well-Known Member
- Joined
- Feb 29, 2020
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Charged for customer service? Eskom has customer service? Hilarious. And a separate charge for meter reading and other admin? I've had a prepaid meter for more than twenty years. So what admin is there really? People all the way to the very top have their hands in this pie so these charges and more will remain.
I understand what you were saying ... my point was they seem to be only showing ^ (CoJ) in the article and not Eskom at all...
Doesn't really explain it at all. There's nothing about what this charge is actually for when it's already included in the tariff. That's what people want answers for. For some reason these services aren't any better maintained than those that don't have a fixed charge.
wingnut771
Honorary Master
Is this not Eskom? but I see what you're saying, those "network charges" are identitical, what confused me was the rates are slightly different.
I don't know... but it does not seem to be Eskom.
All 4 CoJ rates are listed on the bill: Service charge of R169.29; Network charge of R498.72; "Step 1" of 163.19c/kWh; "Step 2" of 187.28c/kWh (The thresholds are adjusted a little bit as the billing period is longer than 30 days)
wingnut771
Honorary Master
Ok my bad, you're right, I was looking at the rates in the article which are slightly different:
Seems not even mybb knows how Eskom billing works.
zerocool2009
Honorary Master
So in short... its just another tax
wingnut771
Honorary Master
I wonder how many people in Soweto or Alex pay a R770 network charge.
Jam Sandwich
Honorary Master
- Joined
- May 15, 2007
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- 18,430
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My average bill looks like this (buying direct from Eishkom)
Network Capacity Charge @ R4.38 per day for 30 days R 131.40
Energy Charge ( 0 - 600 kWh) 375 kWh @ R1.6747 /kWh : R 628.01
Network Capacity Charge @ R4.38 per day for 30 days R 131.40
Energy Charge ( 0 - 600 kWh) 375 kWh @ R1.6747 /kWh : R 628.01
