Use Less, Pay Less, Bring Household Costs Down

Ahead of the new tariffs and rates that come into effect from 1 July 2025 and that will reflect in the bills of City of Cape Town customers from approximately mid-July onwards, and July purchases, households are reminded that there is some room to reduce monthly municipal service costs. Tariffs have a usage and fixed component and by reducing usage, one can reduce costs. All income from rates and tariffs is used to pay for the delivery of services, now and into the future.

Top tips to help reduce household costs

1. In winter, households typically use more electricity due to factors such as space heating and water heating through geysers. The increased winter electricity usage, which coincides with the annual tariff increases that come into effect from 1 July, impact bills. Use less, and pay less.
2. Buying electricity units in bulk might push a customer into a more expensive tariff category. Buy amounts only as you need it, and keep it under 600 units per month where feasible.
3. Don’t stockpile electricity units now at the current price ahead of the increase from 1 July. This might push customers into a higher price category, over 600 units for June.
4. Switch geysers on for only an hour or two per day. Reduce geyser temperature to 60 degrees Celsius.
5. Taking a short shower uses five time less electricity and 80% less water than taking a bath.
6. Switch to LED bulbs as they use 90% less energy than incandescent bulbs.
7. Kettle boiling: Boil only the water required or store the boiled water in a flask to keep warm.
8. Households can reduce water costs by reducing their usage.
9. Don’t flush the toilet in a rush. Flush only when necessary and don’t use the toilet bowl as a dustbin.
10. Although tariffs comprise a fixed and usage component, there is room for savings in the usage component of the tariffs.

‘Overall the cost of electricity to City-supplied residential customers is going up by a maximum of R109,09 (VAT included) for Home User categories with Domestic at R70,33 (VAT included). The average increase across all user categories (residential and commercial) is 7,2%, considerably less when compared with the more than 11% national Eskom increase.

‘The per unit cost for electricity is going down from 1 July 2025 for residents on the Home User Tariff to compensate for the increased service and wires charge. Domestic Tariff users will also pay less per unit on Energy Block 2, and relatively the same on Energy Block 1 as 2024/25 to compensate for the introduction of the service and wires charge. Lifeline customers using 600 units monthly will pay about the same in 2025/26 as they did in 2022/23. They can exceed 450 units during high-demand winter months, and still qualify for lifeline rates, provided that their 12-month average stays at or below 450 units.

‘Ensuring that we are able to pay for electricity service delivery while at the same time investing in energy security for a future-fit city, is absolutely vital,’ said the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg.