Understanding incline block tariffs for prepaid meters

Understanding incline block tariffs for prepaid meters

The electricity price is divided into several steps or blocks. In the Overstrand, the first block of electricity (350 kWh) is at the lowest price for all single phase connection electricity (60AMP). This includes households.

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 Block 3.

At the end of the month, the history is reset and the customer will again start the next month from Block 1. A customer will be put in the higher “block” automatically, depending on the amount of electricity bought / requested.

Purchasing electricity by means of one or more transactions within one month does not affect the price category, it is the total amount of electricity bought within a calendar month that affects this.  

It is best if you only buy enough electricity for one month. Buying electricity in bulk will mean you end up paying more for electricity.

Residents that make use of prepaid electricity, pays 17c per unit cheaper than those who make use of a credit meter.

The new electricity tariffs came into effect on 1 July 2023 and the new tariff scale is as follows:

  • 0 – 350 Units = 2.0579 (vat incl) per unit (350 Units = R720.26)
  • 351 – 600 Units = 3.0833 (vat incl) per unit (250 Units = R770.83)
  • 600+ Units = 3.8642 (vat incl) per unit
  • Indigents 50 free units and may buy 450 units (450 Units = R1 028.60)


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