Incline Block Tariffs (IBT)

What are Incline Block Tariffs (IBT)?

Incline Block Tariffs divide the electricity price into several steps or blocks. The first block of electricity is at the lowest price. As the customer purchases more electricity during the month, the electricity bought will eventually fall in block two which is a bit more expensive. This process repeats automatically as the customer purchases further electricity to move into block 2. At the end of the month, the history is reset and the customer will again start the next month from block 1.

The process to move from the one block to the next is automatic and depends only on the amount of electricity that is acquired by the customer. The movement to the next block is not at all affected whether the purchases are spread over many transactions or if all the electricity is part of one transaction.

Because the blocks increase in the price, customers can save money by not buying more electricity than what they will use during the month. It is much better to wait until the next month and start to buy again at the low price.

Below is a picture to show how these blocks are divided for the purchase total during a month:

• Electricity is measured in kWh along the horizontal line at the bottom.
• The first electricity obtained for the month is always counted from the left and follow the line as electricity is purchased during the month.
• As more electricity is purchased beyond the step points, that portion of electricity will be at the higher price.
• Remember the total electricity bought during the month determines the steps, not the date or the number of purchases.