Cape Town Electricity Tariff Changes: What You Need to Know

The Shocking Numbers: From NERSA to Your Bill

The National Energy Regulator of South Africa (NERSA) recently approved an 18.49% tariff hike for municipalities across the country1. However, Cape Town has taken a different approach, containing the price hike to 17.6% for its residents1. But what does this mean for you?

Lifeline Tariffs and Subsidies

The City of Cape Town recognizes the strain on household budgets. To shield residents from the full impact, they’ve adjusted the Lifeline tariff—a lifeline indeed for lower-income customers. Here’s the breakdown:

• Current Lifeline Tariff: Customers consuming more than 350 units pay R3.71 per unit.
• Revised Lifeline Tariff: The new tariff reduces this cost to R1.84 per unit1.

Moreover, the city has raised the property value criteria for Lifeline customers to R500,000, compensating for property value growth1. It’s a balancing act between affordability and sustainability.

The Battle Against Eskom’s Surge

Cape Town’s Mayor, Geordin Hill-Lewis, has been at the forefront of the fight against Eskom’s relentless price hikes. He emphasises that it’s not the city’s—or its residents’—duty to subsidise Eskom’s increases. The spiraling electricity costs wreak havoc on household budgets, leaving families struggling to make ends meet1.

The Roadmap to Freedom

Cape Town’s ambitious plan aims to break free from Eskom’s grip. Here’s how:

1. Buying Power: The city allocates R220 million to purchase power on the open market, diversifying its energy sources.
2. Power Heroes: A voluntary energy savings incentive scheme encourages residents and businesses to reduce consumption, saving R288 million.
3. Hydro-Electric Plant: Operating the Steenbras hydro-electric plant costs R1 billion.
4. Solar Solutions: City-owned solar plants and cash-for-power payments for solar energy contribute R640 million.
5. Battery Storage: Investing R50 million in cutting-edge battery storage technology ensures stability during load shedding1.

Mayor Hill-Lewis is confident that Cape Town will emerge as the first metro to escape Eskom’s stranglehold, illuminating a brighter electric future for all1.

Illuminating Hope

The Cape Town electricity tariff changes are more than numbers—they’re lifelines, struggles, and aspirations. As we navigate these currents, let’s remember that behind every switch, there’s a family striving to keep their lights on.

Conserving Electricity in Cape Town: Practical Tips

While navigating these tariff changes, it’s crucial to adopt energy-saving practices. Here are some ways to conserve electricity and reduce your bills:

1. Replace Your Light Bulbs: Traditional incandescent bulbs consume excessive electricity. Opt for energy-efficient LED bulbs certified by Energy Star. They use up to 90% less energy and last longer3.
2. Use Smart Power Strips: Combat phantom energy by using smart power strips. These shut off power to electronics when not in use, saving you up to $100 annually3.
3. Install a Programmable or Smart Thermostat: Reduce heating and cooling energy use without upgrading your HVAC system. Smart thermostats can save approximately 8% on your bills3.
4. Purchase Energy-Efficient Appliances: When buying appliances, consider both the initial cost and annual operating expenses. Energy-saving models pay off in the long run3.
5. Explore Alternative Power Sources:
   • Grid-Tied Photovoltaic (PV) System: Solar panels connected to the grid provide usable solar power. Consider grid-tied PV systems for temporary support during load shedding and long-term relief as a preferred power source4.
   • Off-Grid Solutions: Explore solar, wind and micro-hydro electricity options.

1. Unplug Idle Devices: Even when turned off, many devices continue to draw power. Unplug chargers, TVs, and other electronics when not in use. Consider using smart plugs to automate this process.
2. Insulate Your Home: Proper insulation keeps your home cooler in summer and warmer in winter. This reduces the need for excessive heating or air conditioning, ultimately saving electricity.
3. Time-of-Use Tariffs: Some municipalities offer time-of-use tariffs. Take advantage of lower rates during off-peak hours. Run energy-intensive appliances like washing machines and dishwashers during these times.
4. Educate Your Family: Involve everyone in energy-saving practices. Teach kids to turn off lights when leaving a room and encourage energy-conscious habits.
5. Energy Audits: Electrogem provides professional energy audits. These assessments identify areas where you can improve efficiency. From leaky windows to outdated appliances, an audit guides you toward cost-effective upgrades.