THE IMPACT OF RISING ELECTRICITY TARIFFS
Electricity tariff increases place growing pressure on both property owners and tenants. For property managers, even a short delay in adjusting electricity rates can result in significant under-recovery.
Smart prepaid metering provides a more responsive way to manage tariff changes, helping ensure that the correct rate is applied while giving tenants greater visibility over their electricity spending.
HOW TARIFF INCREASES REACH YOUR PROPERTY
01
ESKOM
Bulk electricity tariff changes
02
MUNICIPALITY
Distribution and service charges are applied
03
PROPERTY
Updated electricity cost reaches the property
04
TENANT
The applicable tariff determines the cost of consumption
When billing rates aren’t updated promptly, the difference becomes an under-recovery for the property owner.
EVERY DELAY CAN COST YOUR PROPERTY
When municipal electricity tariffs increase, property managers need to ensure tenant billing rates are adjusted from the correct effective date.
With manual billing, these changes can take time to implement. During that period, electricity may be supplied at the new municipal cost while tenants are still being charged at the previous rate.
The result?
Higher Supply Cost → Old Tenant Tariff → Under-Recovery
TARIFF CHANGES WITHOUT THE ADMIN HEADACHE
Remote Updates
Applicable tariff rates can be updated remotely across affected prepaid meters.
Correct Effective Rate
Updated tariffs can be applied from the required effective date.
Reduced Under-Recovery
Faster tariff adjustments help reduce the financial gap caused by outdated billing rates.
A MORE TRANSPARENT WAY TO EXPERIENCE TARIFF CHANGES
With postpaid electricity, tenants may continue using electricity normally and only discover the impact of a tariff increase when a higher bill arrives at month end.
Prepaid metering makes the change more visible as it happens. When tariffs increase, each rand of prepaid credit purchases fewer electricity units, allowing tenants to see and respond to the change in their consumption sooner.
No surprise month-end increase — greater visibility as consumption happens.
Image idea: Tenant checking their prepaid electricity balance on a smartphone at home.
PLAN FOR THE NEXT TARIFF INCREASE
Smart metering does more than manage today’s tariff. Historical consumption information can help property managers understand how future tariff increases could affect a property’s utility costs.
- Analyse – Review historical electricity consumption.
- Forecast – Estimate the effect of future tariff increases.
- Plan – Make informed utility and property-management decisions.
BETTER CONTROL IN A CHANGING TARIFF ENVIRONMENT
Accurate Rates
Keep electricity charges aligned with applicable tariffs.
Protect Revenue
Reduce losses caused by delayed tariff adjustments.
Greater Transparency
Give tenants clearer visibility over electricity spending.
Better Planning
Use consumption information to prepare for future increases.
