Tips to save on your electricity bill & common myths busted

Where every Rand counts, the City of Cape Town wants to ensure that residents are equipped with the correct information - from practical savings tips to busting common myths about prepaid electricity purchases.

One of the City's most important tips is never to buy electricity in bulk. Buying in bulk could push customers into a more expensive tariff band.

Saving tips for prepaid electricity customers...

• Buy only what you need.
• Avoid purchasing electricity in bulk, as far as possible. Rather, buy smaller amounts as needed, as bulk purchases could push customers into the higher second block, resulting in a higher cost per unit. 
• Monitor your monthly usage and costs.
• Use electricity wisely – small behavioural changes can lead to savings by:

Limit geyser usage to one to two hours per day and set the thermostat to 60°C.

In many homes, the geyser accounts for approximately 60% of electricity costs. Take shorter showers to further reduce geyser-related expenses.

Use energy-efficient appliances, and replace lightbulbs with LEDs where possible.

When boiling the kettle, only boil the amount needed. For more tips to save electricity and money, visit: www.capetown.gov.za/savingelectricity. 

Here are some common myths about prepaid electricity meter purchases:

Myth: You pay more per unit of electricity when you use electricity in winter or during the peak hours in the evening.

Truth: The price remains the same no matter the time of day or the season. Electricity tariffs do not differ according to the time of day or time of year. Typically, in winter, household usage goes up.

Myth 2: You should buy units on the 1^st of the month, because the rate per unit increases during the month.

Truth: This is not true. The City has an inclining block tariff - the tariff resets on the 1st of the new month.

It is important to note that the tariff that applies to you is determined by: the value of your property (but not location specifically); the type of electricity meter you have; whether you are registered for receiving a rates rebate and indigent relief (i.e. pensioners, social grant recipients; and your monthly purchases (calculated on a 12-month average).

Myth 3: Prepaid electricity is more expensive than credit purchases/postpaid purchases. 

This is not true. Electricity is not more expensive via a prepaid electricity meter, and customers do not get fewer units for the same price on prepaid. A prepaid meter merely measures the usage and does not consume the customer's electricity in the meter.

A prepaid meter allows residents to limit their usage as far as possible and to manage their household expenditure.

Myth 4: I am losing units via the 'utility charge' or 'Service and wires charge' or fixed.

City customers have experienced a reduced unit cost since 1 July 2025.

The electricity tariff comprises a usage cost and a fixed cost to form the entire tariff. Fixed charges are necessary because the City requires a portion of reliable, fixed revenue to make long-term infrastructure investments, equipment, and network maintenance.

This means residents can save by consuming less, while still ensuring that all ratepayers contribute to Cape Town's infrastructure and fixed service costs.

Fixed charges: How it works when purchasing prepaid electricity:

• Customers now pay a total R59,90 (VAT excl.) fixed.

charge per month, called the Services and Wires Charge.

• The charge is divided into a daily rate of R1,97.

• With each electricity purchase, customers pay for the number of days since the last purchase.

• Example: a customer buying electricity every 15 days will pay 15 x R1,97 = R29,55 in fixed charges (R59,90 for 30 days).

Depending on the vendor, the fixed charge could be displayed as 'utility charge' or 'Service and wires charge' or fixed charge.

Regardless of your electricity consumption, the maximum total monthly bill increase is R109,09 on the Home User Tariff and R70,33 on the Domestic Tariff, VAT included. Many customers will see an even lower increase in rands and also decreases, especially at higher levels of consumption.

For more information on the cost of electricity, please visit: Understanding-residential-electricity-tariffs.pdf (capetown.gov.za)
 
For Eskom-supplied customers' tariff information, please visit: https://www.eskom.co.za/distribution/tariffs-and-charges/
 
Assistance is available for qualifying customers:
 
Contact:

• Debt write off: payment.arrangements@capetown.gov.za 
• Rates rebates: rates.rebate@capetown.gov.za 
• Indigent help: indigent.relief@capetown.gov.za 
• Call centre: 0860 103 089
• For electricity enquiries: Electricitycustomer.support@capetown.gov.za