An electricity tariff is a means with which Eskom or local municipalities bill their customers for the provision of electricity. There are numerous fees applicable, varying from one municipality to the next, with the two main constituents being consumptive-based charges (kWh) and demand charges (kVA). These typically form the base of the tariff and will vary according to other parameters, such as voltage, distance from the electrical source, customer energy demand, etc.
Small power users, such as residential, small tenanted space, etc. are charged typically on consumptive-based electricity tariffs. The kWh rate is high, for example R 1,20 per kWh as in the City of Cape Town tariff example below:
Large power users, for example large commercial buildings, large hotels and factories would typically have a demand-based tariff with a low consumption charge.
Even complex Eskom electricity tariffs have the two main components, namely consumption and demand. The consumption (kWh) charges are usually called “energy” charges on Eskom bills. Power-Star has expertise in understanding tariffs from having dealt with municipalities from all over southern Africa and abroad.
Depending on your operations and how energy is being used, you may, or may not be on the most appropriate tariff structure. Energy costs can be significantly lowered by either moving from one tariff to another or by better understanding your current tariff. The information that we gather with our online meter can be used to optimise your energy usage and lowering costs. For a better understanding of your electricity tariff and how your operations impact the costs, get in touch with us, we are here to help.