As from 1 July 2024, the City of Cape Town and Eskom implemented new electricity tariffs, affecting households across various consumption levels. The tariff adjustments are a response to rising electricity generation costs from Eskom, coupled with ongoing issues related to load shedding and the need for infrastructure maintenance. This post outlines the most important changes to the tariffs:
City of Cape Town
Lifeline tariff
The Lifeline tariff saw a modest increase in its rate. The most important change in this tariff, however, is the fact that the Block 2 rate is now the same as the Block 1 rate for this tariff as of 1 July 2024. This means that households consuming on average between 0 and 600 units of electricity per month, and households consuming on average more than 600 units of electricity per month will now pay the same rate for their units. Although this rate is slightly higher, the Free Basic Electricity (FBE) policy remains the same for qualifying prepaid users.
Domestic and Home User tariffs
For higher consumption households on the Domestic and Home User tariffs, rates across the two block tariffs have been raised. This is part of a broader strategy to promote energy conservation and curb excessive electricity consumption.
Eskom
Homelight 20A tariff
Households on the Homelight 20A tariff saw an increase in the rates for both blocks as of 1 July 2024. Qualification criteria for Free Basic Electricity (FBE) remain the same.
Homelight 60A, Homepower 1, 2, 3, and 4 tariffs
Households in the higher consumption tariffs equally saw an increase in their rates. Notably, however, the rates for Block 2 of the Homepower 1, 2, 3, and 4 tariffs have been slightly reduced, meaning that households on these tariffs consuming on average more than 600 units of electricity per month saw some relief in their rates as of 1 July 2024.
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