City of Cape Town outlines updated electricity tariff structures
The City of Cape Town has outlined its updated electricity tariff structures, detailing how fixed infrastructure charges, energy blocks, and time-of-use rates apply to domestic consumers and solar users as municipal revenue policies align with National Treasury reforms.
Electricity tariffs across the municipality comprise two primary components: a fixed “Service and Wires” charge and a consumption-based energy cost per unit. According to the City of Cape Town, fixed charges provide the stable revenue required to maintain and invest in reliable grid infrastructure, insulating the city’s power distribution networks from revenue fluctuations caused by rising residential solar adoption. Without a baseline fixed fee, consumption charges per kilowatt-hour would rise significantly.
For standard domestic users, the cost model splits energy usage into defined consumption blocks. Energy Block 1 covers consumption up to 600 units at R4,14 per kilowatt-hour, including VAT, while Energy Block 2 applies to consumption exceeding 600 units at R4,94 per kilowatt-hour. For home user tariffs, Block 1 is set at R3,56 per kilowatt-hour and Block 2 at R4,69 per kilowatt-hour. Under these structures, a typical household consuming 400 units faces a total monthly bill of R1 729,93 for domestic tariffs or R1 848,10 for home user categories, inclusive of applicable fixed charges and VAT.
Residential Time-of-Use Tariffs for Advanced Meters
Households equipped with advanced metering infrastructure (AMI) can opt for the Residential Time-of-Use tariff. This structure allows consumers to manage monthly electricity expenses by shifting heavy usage periods away from peak pricing windows. Peak hours run on weekdays from 07:00 to 09:00 and from 18:00 to 21:00, carrying the highest energy charges during high-demand months from June to August. Standard-cost periods cover remaining daytime hours on weekdays and limited weekend blocks, while off-peak rates apply overnight and during remaining hours.
Electric vehicle owners and households with integrated solar photovoltaic and battery storage systems can utilize the time-of-use framework to charge vehicles and store grid energy during off-peak windows. This setup minimizes drawing power during expensive peak hours.
Low-Income Households Qualify for Subsidized Lifeline Tariffs
Qualifying low-income households access subsidized power via the Lifeline tariff. Customers qualify for Lifeline if they use a prepayment meter and reside on a property valued at R500 000 or less, or maintain a monthly household income of R7 500 or less. Pensioners and social grant recipients qualify for Lifeline electricity with monthly household incomes up to R27 000, irrespective of property value.
Lifeline 1 requires average consumption under 250 units per month over 12 months, granting access to 60 kWh of Free Basic Electricity. Consumers exceeding that threshold move to Lifeline 2, which requires consumption under 450 units per month to access 25 kWh of Free Basic Electricity. All Lifeline customers pay a flat consumption rate of R2,83 per kilowatt-hour.
Following the 2025 General Valuation, property value adjustments have altered tariff categories for certain residents. Pensioners seeking rates rebates and indigent relief must submit applications before the November 30, 2026 deadline by visiting a municipal walk-in center, downloading forms from the municipality’s website, or emailing the designated municipal administrative addresses.