by Chris Yelland, investigative editor, EE Publishers

There is significant public misperception and confusion in respect of domestic electricity tariffs in South Africa. In order to clarify the facts, this study compares the domestic electricity prices of Eskom and the six largest metros in the country, namely City Power (Johannesburg), Ekurhuleni, Tshwane, eThekwini, Nelson Mandela Bay and Cape Town.

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Chris Yelland

The study shows that for limited capacity supplies, eThekwini offers a very low-cost, lifeline supply tariff (up to 150 kWh per month) to indigent customers. However it is not really fair to compare this with the limited capacity supplies of other distributors, which are available somewhat more generally to low-income, low-consumption customers in shacks or townships.

In ascending order, other low-cost, limited-capacity supplies are offered by Nelson Mandela Bay (up to about 450 kWh per month), Ekurhuleni (up to about 750 kWh per month) and Eskom (up to the full capacity of a 20 A prepayment meter). Cape Town offers a medium-priced limited-capacity supply up to 350 kWh per month, rising sharply thereafter for higher consumption up to 450 kWh per month. Tshwane provides the highest pricing of the limited-capacity supplies, over the full range from 0 - 1000 kWh per month.

City Power does not offer a limited-capacity tariff, but for comparative purposes the 60 A City Power prepaid tariff option is shown in Fig. 1. This indicates that its standard tariff, with three times the capacity of a 20 A limited-capacity prepaid tariff (such as that of Eskom), is still priced reasonably in the mid-range of the limited-capacity supply tariffs, over the range of 0 - 1000 kWh per month.

With standard tariffs, low-consumption domestic customers using up to 1000 kWh per month on the City Power 60 A prepaid meter standard tariff option enjoy the lowest pricing. As a result of their high fixed monthly charges, the City Power 60 A and 80 A credit meter standard tariffs give the highest monthly billing for consumption up to 700 kWh and 750 kWh per month respectively, after which Cape Town rapidly assumes pole position for the highest electricity prices.

For medium-consumption domestic customers, over the range of 1000 - 2000 kWh per month, the City Power 60 A prepaid meter standard tariff continues to provide the lowest pricing, while Cape Town gives the highest.

For high-consumption domestic customers using from 2000 - 4000 kWh per month on standard tariffs, Cape Town continues with its position as highest priced of all, followed closely by Eskom, while the City Power 60 A prepaid meter standard tariff continues to provide the lowest pricing up to 3000 kWh per month, after which eThekwini takes the lead... (more)

 Click here for the full analysis and graphs