Big electricity price changes for Cape Town

The City of Cape Town has published its draft budget for 2017/18, which includes proposed changes to the tariffs of basic utilities.

The municipality said it will charge non-indigent customers for the first 6 kilolitres of water consumed, and first 4.2 kilolitres of sanitation.

From 1 July 2017, it also proposed the implementation of a revised electricity tariff structure that will help prevent a blanket increase of 7%.

Cape Town classifies its residential electricity customers into three tariff categories: Lifeline, Domestic, and Home User.

To avoid a large price increase, the municipality said Lifeline customers with properties valued at over R400,000 will move to the Domestic tariff. Domestic clients with properties worth over R1 million will be migrated to the Home User category.

This means residential customers with properties valued at over R1 million will now have to pay a daily service charge of R8.21 per day.

Cape Town said around 44,000 Lifeline customers will be affected and just under 200,000 Domestic clients will be moved to the Home User tariff.

Any customer using 600kWh per month or more on average will see no impact as a result of the move, said the city.

This means that over 42% of the Domestic tariff clients that will be migrated will not see a financial impact.

The changes are summarised in the table below.

Proposed City of Cape Town Residential Electricity Tariffs
LifeLine
2016-17
2017-18
%change
0-350 kWh (c/kWh)
110.68
116.28
5.06%
350+ kWh (c/kWh)
306.44
234.44
-23.50%
Domestic
2016-17
2017-18
%change
Service charge
0.00
0.00
0.00%
0-600 kWh (c/kWh)
187.54
192.80
2.80%
600+ kWh (c/kWh)
228.06
234.44
2.80%
Home User
2016-17
2017-18
%change
Service charge (R/day)
R7.98
R8.21
2.86%
0-600 kWh (c/kWh)
147.08
151.20
2.80%
600+ kWh (c/kWh)
228.06
234.44
2.80%

Now read: Cape Town draws battle lines over right to buy alternative energy from IPPs

Latest news

Partner Content

Show comments

Recommended

Share this article
Big electricity price changes for Cape Town