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Cape Town
Sunday, April 19, 2026

Prepaid electricity myths and why you shouldn’t bulk buy

Published on

 

The City of Cape Town has shared practical advice to help prepaid electricity users save money and clear up some common myths.

 

Here’s what you need to know:

 

💡 Saving Tips

 

Q: Should I buy electricity in bulk to save money?

A: No. Buying in bulk can push you into a higher tariff block, making your units more expensive. Rather buy smaller amounts as needed, and try to stay below 600 units per month to remain in the cheaper Block 1.

 

Q: How can I reduce my electricity bill?

  • Switch your geyser on for only 1–2 hours a day.
  • Lower the geyser thermostat to 60°C.
  • Take shorter showers.
  • Use LED bulbs and energy-efficient appliances.
  • Only boil the amount of water you need in the kettle.
  • Track your usage monthly – your municipal bill shows how much you’re buying.

 

🔎 Common Myths Busted

 

Myth 1: Electricity costs more in winter or during peak hours.
❌ False. The price per unit is the same all year round. Usage just tends to be higher in winter.

 

Myth 2: Units are cheaper if you buy on the 1st of the month.
❌ False. The tariff resets monthly, so the date you buy does not change the price.

 

Myth 3: Prepaid electricity is more expensive than postpaid.
❌ False. A prepaid meter does not cost more – it simply measures your usage and helps you manage household expenses.

 

Myth 4: I’m losing units because of “utility” or “service and wires” charges.
❌ False. Since July 2025, fixed charges apply across tariffs. This ensures the City can cover infrastructure and service costs. The usage charge has been reduced to balance this.

 

📊 Understanding Fixed Charges

 

  • Domestic Tariff: A fixed monthly charge of R59,90 (excl. VAT) applies.
  • This is billed daily (R1,97/day) and collected whenever you buy electricity.
  • Example: If you buy every 15 days, you’ll pay about R29,55 in fixed charges that time.
  • Regardless of how much you use, the maximum monthly bill increase is:
  1. R109,09 on the Home User Tariff
  2. R70,33 on the Domestic Tariff

 

Many customers will see smaller increases – or even decreases – especially at higher usage levels.

 

🧾 Special Protection for Lifeline Customers

 

  • Lifeline customers using up to 600 units/month pay about the same as three years ago.
  • They also receive 25 or 60 free units monthly, depending on their usage.
  • Even if winter demand pushes them over 450 units, they remain on Lifeline if their 12-month average stays below 450 units.

 

📞 Need Help?

 

  • General electricity enquiries: Electricitycustomer.support@capetown.gov.za
  • Call Centre: 0860 103 089
  • Rates rebates: rates.rebate@capetown.gov.za
  • Indigent support: indigent.relief@capetown.gov.za
  • Debt write-off/payment arrangements: payment.arrangements@capetown.gov.za

👉 For Eskom-supplied customers, check tariffs at eskom.co.za.

 

 

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