AB Management Services

Burst and leaking pipes; when will your insurance pay? The new sectional title insurance regulations around burst and leaking pipes does not exactly match with what insurers are prepared to insure. This...

Seminar to discuss the attendees about the changes in the Regulations, the Sectional Title Management Schemes Act and CSOS, was well attended.

UNDERSTANDING RESIDENTIAL ELECTRICITY TARIFFS IN CAPE TOWN - 2016/2017
(Applicable from 1 July 2016)
(NOT APPLICABLE TO ESKOM SUPPLIED AREAS)

In the information set out below it should be noted that:

• 1 unit of electricity is equal to 1 kWh;
• The step from Block 1 to Block 2 of the tariff is applied taking all the purchases for that month into account, not each individual purchase;
• The LIFELINE TARIFF must be requested by the customer, it is not applied automatically and are subject to meeting conditions/criteria;
• In assessing a particular customer, the average consumption over the previous 12 months, at the time of assessment, is used, along with the municipal property valuation of that customer, and the type of meter present;
• A customer whose previous 12 month average consumption is above 450 kWh is automatically moved to the DOMESTIC TARIFF, in September and March of each year;
• Residential premises with a supply of more than 100 Amps three-phase are treated as Commercial Customers.

A. You will be eligible for the LIFELINE TARIFF if:

* FOR NEW CUSTOMERS:
* You have a municipal property valuation of R400 000 or less; and
* You receive less than 450 kWh per month on average, including any free electricity; and
* You have a prepayment meter.
* If you receive a pensioner or disabled persons rebate in terms of the Rates Policy, or are registered as Indigent in terms of the Credit Control and Debt Collection Policy, the property valuation and metering provisions fall away.

Note: The Municipal property valuation can be found on Municipal Rates monthly accounts. It is also the City’s intention to change the Tariff Policy at a date to be determined to permit access to the Lifeline tariff only to those customers with municipal property valuations of less than R400 000 who receive less than 450 kWh per month on average, including free electricity.

FOR EXISTING CUSTOMERS ON THE LIFELINE TARIFF WITH A PREPAYMENT METER:

• You receive less than 450 kWh per month on average, including any free electricity.

Note: In this customer category, the property valuation limit of R400 000 will not be applied for 2016/2017. However, for the 2016/2017 financial year, existing Lifeline customers with a property value of R1 000 000 or more will be moved to the Domestic tariff. It remains the City’s intention to change the Tariff Policy at a date to be determined to permit access to the Lifeline tariff only to those customers with municipal property valuations of less than R400 000 who receive less than 450 kWh per month on average, including free electricity.
More LIFELINE TARIFF notes

FOR EXISTING CUSTOMERS ON THE LIFELINE TARIFF WITH A PREPAYMENT METER OR A CREDIT METER:
* If you receive a pensioner or disabled persons rebate in terms of the Rates Policy, the property valuation and metering provisions fall away.
* If you are registered with the City as indigent in terms of the City’s Credit Control and Debt Collection Policy the property valuation and metering provisions fall away.

Under the LIFELINE TARIFF you will be eligible for Free Basic Electricity as follows:
* 60 kWh if you receive less than 250kWh per month on average taken over the previous 12 month assessment period, including any free electricity;
* 25 kWh if you receive more than 250 kWh but less than 450 kWh per month on average taken over the previous 12 month assessment period, including any free electricity.

The LIFELINE TARIFF works as follows:
* Block 1: Free Basic energy – no charge to customer
Balance up to 350 kWh per calendar month (97.09 c/kWh plus VAT) = 110.68 c/kWh.
* Block 2: Above 350 kWh per calendar month (268.81 c/kWh plus VAT) = 306.44 c/kWh.

B. You will be charged on the DOMESTIC TARIFF if:

• You receive more than 450 kWh per month on average over any 12 consecutive month period, or if you are billed on a credit meter with a municipal property valuation in excess of R400 000, irrespective of your monthly consumption.

• You have a credit meter.
• The DOMESTIC TARIFF works as follows:

* Block 1: 0 - 600 kWh per calendar month (164.51 c/kWh plus VAT) = 187.54 c/kWh.
* Block 2: Above 600 kWh per calendar month (200.05 c/kWh plus VAT) = 228.06 c/kWh.

C. The Home User Tariff:

• The Home User tariff will not be implemented in the 2016/2017 financial year, and as such has no bearing on this document at this stage.