Tag Archives: electricity

More power to you…

Anyone living in Cape Town and with a bit of spare cash and a pre-paid electricity meter would probably do well to buy electricity before the 25% increase on the 1st July.

By doing this you will effectively be buying electricity at a 25% discount to the new price…a tidy return on your money indeed. A couple of caveats first though:

  1. You need to make sure that you remember to at least “top-up” your account each month to pay for that daily service fee that is levied. Failure to do that could land you with a nasty surprise in a couple of months when you get no electricity next time you buy because all of the money went to cover arrear service fees…
  2. I have no idea what happens if you buy the electricity and something goes wrong with your electricity box – it does not happen very often but I guess it could and if Murphy is around it will happen just after you have charged up – so make sure you keep your receipts so you can at least “prove” that you had the electricity if there is a problem.
  3. Make sure you dont forget to make provision for electricity in your future monthly budgets – i.e. if you have bought enough for 3-4 months, dont forget to budget for electricity in the months after that..

That’s all for now – I need to top-up with electricity.

Electricity increases…

So Eskom’s been granted increases of 24.8%, 25.8% and 25.9% for the next 3 years. Not as big as they wanted but still significant. What does it mean for us as consumers?

There is a beautiful little rule called the “rule of 72” which states if you want to know how quickly something will double in value/cost you need to divide the number into 72. So based on this, an increase of 25% means that the price of electricity will double just under every 3 years (72/25 = 2.9).

So if you are currently paying R3oo for electricity then this will increase to about R600 in 3 years time (see the tables below for the actual figures). Basically, the cost of electricity will double over the next 3 years and while this may not seem like a lot to you and me right now, the real cost will come through in the related inflationary effects and only time will reveal what that will be.

So as we say in our house when ever you leave a room at night “Eskom thanks you for turning off the lights”.

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