Events Calendar

<<  December 17  >>
 Su  Mo  Tu  We  Th  Fr  Sa 
       1  2
  3  4  5  6  7  8  9
10111213141516
17181920212223
24252627282930
31      

Important Numbers

ALL EMERGENCIES AND CUSTOMER SERVICE

0860 88 1111

Complaints
complaints@langeberg.gov.za

 

Robertson Police
023 626 8340

Ashton Police
023 615 1782

Montagu Police
023 614 1230

McGregor Police
023 625 1600
Fire Services

023 615 8911 / 8913

Traffic Department

023 615 8900 / 8901

 

Fraud prevention
National hotline 0800 701 701

Understanding Incline Block Tariffs for Prepaid Meters

What is Incline Block Tariff (IBT)?

Incline Block Tariffs divide the electricity price into several blocks. The first block of electricity is at the lowest price. As the customer purchases more electricity during the month, the electricity bought will eventually fall in block 2 which is a bit more expensive. This process repeats automatically as the customer purchases further electricity to move into the next block.

 

 

At the end of the month, the history is reset and the customer will again start the next month from block 1.

 

The process to move from the one block to the next is automatic and depends only on the amount of electricity that is acquired by the customer. The movement to the next block is not at all affected whether the purchases are spread over many transactions or if all the electricity is part of one transaction.

 

Because the blocks increase in the amount of units purchase, customers can save money by not buying more electricity than what they will use during the month. It is much better to wait until the next month and start to buy again at the low price.

 

 

Below is a chart to show how these blocks are divided for the total purchase during a month (excluding 14% VAT):

 

 

Explanation Incline Block Tariff B Page 1

 Electricity purchased is measured in kWh along the horizontal line at the bottom from the left (0) to the right (600)

 

The first electricity units purchased for the month are always counted from the left (0) and follows the horizontal line as more electricity units are purchased during the month.

As more electricity is purchased beyond a certain block that portion of electricity will be at the higher price of the next block.

Remember the total electricity bought during the month determines the average price per unit, not the date or the number of purchases.

Note that the Free Basic Electricity (FBE) is also included in the blocks. If a customer is configured to receive free basic electricity, he will still receive it but it will make up the first part of the electricity in the month, therefore the purchases will follow after the free electricity portion.

 

Practical explanation of the incline Block-Tariffs

It is very important to determine what your average electricity consumption per month is to ensure that you do not buy more than you need as illustrated by the example below.

 

For this example, I assume that my average consumption is 500 units per month:

A.  If I buy 500 units at the start of every month the average unit cost can be determined as follows:

500 UNITS EVERY MONTH:

 

Block 1

(0-50) kWh

Block 2

(51-350)kWh

Block 3

(351- 600)kWh

Block 4

(601 and more)kWh

Total

KWh Purchased

50

300

150

0

500 units

Unit Cost

85.00c

110.00c

153.60c

176.00c

 

Total

R42.50

R 330.00

R 230.40

R 0.00

R 602.00

The average cost per unit is (602 / 500) = R 1.20 + 14% VAT

 

B. If I decide to buy units in advance for the next 6 months (500 X 6) the average unit cost can be determined as follows:

BULK PURHASES: 3000 UNITS FOR 6 MONTHS:

 

Block 1

(0-50) kWh

Block 2

(51-350)kWh

Block 3

(351- 600)kWh

Block 4

(601 and more)kWh

Total

kWh Purchased

50

300

250

2400

3000

Unit Cost

85.00c

110.00c

153.60c

176.00c

 

Total

R 42.50

R 330.00

R 384.00

R 4224.00

R 4980.50

The average cost per unit is ( 4980.50 / 3000) = R 1.66 + 14 % VAT

 

 

Please contact Mr C J Vorster at 023-6268266 if you need further explanation.

 

VENDORS 

Consumers are requested to report vendors at the municipality, who imposes a prerequisite for their products to be purchased before consumers can buy electricity.

 

Search our Website

Newsletter


langeberg-express2

Share

Follow