Why is my prepaid electricity so expensive?

Prepaid electricity in South Africa costs more than many people expect because of several stacked factors. Yebogezi explains each one in plain language with a rand example:

• Inclining block tariffs (IBT): the more you buy in a month, the higher the rate per kWh on later blocks.
• Fixed and daily service charges: a monthly charge that accrues per day, so infrequent buyers see a bigger lump.
• Arrears / debt-recovery deductions: some municipalities take a percentage of each purchase towards arrears before you get units.
• Season: some municipalities charge higher winter rates.
• VAT and payment/vendor fees: 15% VAT plus any fee taken by your payment channel.
• Indigent / Lifeline tiers: registered low-income households often qualify for cheaper rates and free units.

Use the calculator to see the real number for your municipality and spend.