Electricity Block Tariffs The Langeberg Municipality in compliance to NERSA ( the National Energy Regulator of South Africa) have

implemented block tariffs for households and/other single phase connection (<= 60 AMP) electricity supply from 1 July 2011. This means that electricity will be billed in correlation with the amount used per household. What are Incline Block Tariffs (IBT)? Incline Block Tariffs divide the electricity price into four steps or blocks. The first block of electricity is billed at the lowest price. As the customer purchases more electricity during the month, the electricity bought will eventually fall in block two which is a bit more expensive. This process repeats automatically as the customer purchases further electricity and so moves into blocks 2, 3 and 4. 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 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 price, 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 thus start to buy again at the low price. Below is a picture to show how these blocks are divided for the purchase total during a month: Electricity is measured in kWh along the horizontal line at the bottom.

Price ( cen t/kWh)

Incline Block Tariff Purchases per Month

Block 4 Block 3 Block 2 Block 1

50 kWh 350 kWh 600 kWh

Electricity obtained during the month

The first electricity obtained for the month is always counted from the left and follow the blue line as electricity is purchased during the month. As more electricity is purchased beyond the step points, that portion of electricity will be at the higher price. Remember the total electricity bought during the month determines the steps, not the date or the number of purchases. Who will receive Block Tariff electricity?

The Incline Block tariffs have been implemented for all Single Phase Connection <= 60 AMP which includes households. What are the prices for Block Tariff electricity? These are the prices that are approved for residents of the Langeberg Municipal area from 1 July 2011. * Prices exclude VAT Prepaid meter: Single Phase Connection <=60 AMP
Electricity Purchase Blocks Block 1 [0 - 50 kWh] Block 2 [50.1 - 350 kWh] Block 3 [350.1 - 600 kWh] Block 4 [600.1 >> kWh] Price (cent / kWh)* 80c 85c 95c 105c

Indigent tariff: ( Income =< 3000 per month)

Electricity Purchase Blocks Block 1 [0 - 50 kWh] Block 2 [50.1 - 350 kWh] Block 3 [350.1 - 600 kWh] Block 4 [600.1 >> kWh]

Price (cent / kWh)* 0c 71c 90c 95c

Konvesionel Kragtoevoer / Conventional power supply

ELEKTRISITEITHEFFINGS: TOEPASSING VAN DAAGLIKSE VERBRUIKSMETODE Langeberg Munisipaliteit het vanaf Julie 2011 blok tariewe ten opsigte van elektrisiteit implementeer vir alle verbruikers met n enkelfase elektrisiteitsaansluiting. Die beginsel van blok tariewe is dat hor tariewe betaalbaar is hoe meer elektrisiteit verbruik word en die doel daarvan is om elektrisiteit-verbruik te ontmoedig. Die tarief van toepassing op elke blok is die volgende:

0 50 kwh 51 350 kwh 351 600 kwh

- 65c per kwh - 70c per kwh - 85c per kwh

Meer as 600 kwh - 90c per kwh

Verskeie klagtes is ontvang omdat elektrisiteitsheffings gebaseer is op tydperke langer as 30 dae, wat tot gevolg het dat inwoners teen die hor tariewe aangeslaan word vir die verhoogde verbruik as gevolg van die langer verbruikstydperk(langer as 30 dae). Aangesien dit nie prakties moontlik is om alle elektrisiteitsmeters in die munisipale gebied op dieselfde dag elke maand te lees nie (ten einde n 30 dae verbruikstydperk te verseker nie), is besluit om van die daaglikse verbruiksmetode gebruik te maak vanaf Desember 2011. Met die daaglikse verbruiksmetode word die blokke (0 50 kwh, 51 350 kwh, 351 600 kwh ) pro-rata herbereken teen die verbruikstydperk. Indien die verbruikstydperk byvoorbeeld 35 dae is, sal die blokke as volg herbereken word: 0 57,53 kwh : (50 x12 maande / 365 dae * 35 dae = 57,53) (350 x 12 maande / 365 dae * 35 dae = 402,73) (600 x 12 maande / 365 dae * 35 dae = 690,4)

57,53 402,73 : 402,7 690,4 690,4 en meer :

Met die daaglikse verbruiksmetode sal verbruikers nie benadeel word indien die verbruiktydsperk langer as 30 dae is nie. Dit is belangrik om kennis te neem dat indien die verbruikstydperk korter as 30 dae is, word dieselfde beginsel toegepas en word die blokke verkort. NB: Die heffings vir elektrisiteit, soos aangedui op die diensterekeninge wat Desember 2011 uitgestuur word, sal dus op die daaglikse verbruik metode baseer word. U aandag in hierdie verband waardeer.

ELECTRICITY CHARGES: APPLICATION OF DAILY CONSUMPTION METHOD Langeberg Municipality implemented Inclining Block Tariffs (IBT) as from July 2011 for consumers with a single phase electricity connection. The principle of block tariffs means that, higher tariff is charged for higher consumption, meaning the more electricity you consume, the more you pay and the purpose is to encourage electricity savings. The blocks per tariff are the following: 0 50 kwh 51 350 kwh 351 600 kwh More than 600 kwh - 65c per kwh - 70c per kwh - 85c per kwh - 90c per kwh

Many complaints has been received regarding electricity charges that was based on consumption periods for longer than 30 days, as the consumers were charged against a higher tariff for increased consumption due to the longer consumption period.(longer than 30 days) It is not practically possible to read all electricity meters within the municipal area on the same day each month (to ensure a 30 day consumption period), hence it has been decided to make use of the daily consumption method as from December 2011.

Re-calculated on a pro-rata basis according to the consumption period i.e if the consumption period is 35 days the blocks will be recalculated as follows: 0 57,53 kwh : (50 x12 months / 365 days x 35 days = 57,53) (350 x 12 months / 365 days x 35 days = 402,73) (600 x 12 months / 365 days x 35 days = 690,4)

57,53 402,73 : 402,7 690,4 690,4 and more :

With the daily consumption method the consumers will not be disadvantaged if the consumption period is more than 30 days. It is important to note that if the consumption period is shorter than 30 days, will the same principle will be applied and the blocks will be shortened. NB: The electricity charges, as indicated on the service accounts that will be provided in December 2011, will be based on the daily consumption method.

Conventional power supply: Town: Single Phase Connection <= 60 AMP Basic: R101.00

Price per unit:

Electricity Purchase Blocks Block 1 [0 - 50 kWh] Block 2 [50.1 - 350 kWh] Block 3 [350.1 - 600 kWh] Block 4 [600.1 >> kWh] Price (cent / kWh)* 65c 70c 85c 90c