WHAT IS TIME-OF-USE METERING?
As South Africa’s electricity tariff landscape grows more complex, a new billing model is gaining traction among savvy property managers: Time-of-Use (TOU) metering. But what exactly is TOU, how does it work, and could it save money for your tenants and your property? Read on to find out.
WHAT IS TIME-OF-USE METERING?
Traditional flat-rate electricity billing charges the same price per kilowatt-hour regardless of when electricity is consumed. Time-of-Use metering takes a different approach: the price of electricity varies depending on the time of day it is used.
Typically, TOU billing divides the day into three pricing bands:
PEAK HOURS
Highest tariff
Usually weekday mornings (07:00-10:00) and evenings (18:00-20:00) when demand on the grid is greatest.
STANDARD HOURS
Mid-range tariff
The bulk of the daytime.
OFF-PEAK HOURS
Lowest tariff
Overnight and on weekends when demand is lowest.
HOW DOES A TOU PREPAID METER WORK?
TENANT BUYS CREDIT
Tenant purchases electricity credit as usual.
METER TRACKS TIME
The meter’s internal clock knows the time of day.
USAGE IS CHARGED BY TARIFF BAND
Electricity is charged at the prevailing TOU rate based on when it is used -not when credit was purchased.
OFF-PEAK USE GIVES BETTER VALUE
Shifting usage to off-peak hours means tenants get more value from every rand they spend.
ACCURATE COST RECOVERY
Property managers recover costs accurately and align with municipal tariff structures.
BENEFITS FOR PROPERTY MANAGERS
More accurate cost recovery
TOU billing aligns your billing with actual municipal tariff structures.
Compliance with bulk supply agreements
Many municipalities now supply bulk buyers on TOU tariffs, making TOU sub-metering the logical and compliant choice.
Attract quality tenants
Modern, tech-forward billing solutions appeal to tenants who want transparency and control.
BENEFITS FOR TENANTS
Potential savings
By understanding peak and off-peak periods, tenants can actively reduce their electricity bills.
Transparency
Real-time feedback on consumption helps tenants make informed decisions
Fairness
Tenants who use electricity at low-demand times are rewarded with lower rates.
IS TOU RIGHT FOR YOUR PROPERTY?
LARGE RESIDENTIAL COMPLEXES
Especially well-suited where the bulk municipal supply is billed on a TOU tariff.
STUDENT ACCOMMODATION
Ideal where residents have flexible schedules and can shift usage easily.
COMMERCIAL & MIXED-USE PROPERTIES
Perfect for tenants who operate on predictable business hours and have consistent usage patterns.
If your property’s bulk electricity account is already on a TOU tariff from the municipality, not using TOU sub-metering means you are absorbing the tariff risk yourself. TOU sub-meters allow you to pass that cost structure through fairly and accurately to tenants.
