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:
Note that the Free Basic Electricity (FBE) is also included in the blocks. If a customer is configured to receive free basic electricity, he will still receive it but it will make up the first part of the electricity in the month, therefore the purchases will follow after the free electricity portion.
What are the prices for Incline Block Tariff electricity?
These are the prices that have been approved for Eskom:
Who will receive Incline Block Tariff electricity?
The Incline Block tariffs have been implemented for all residential tariffs from Eskom. This means prepayment and conventional customers will have the same block tariffs and pay the same price for electricity.
Further information about Eskom tariffs can be found on the Tariffs and charges web page from the main Eskom site.