Quick Facts

• Your geyser uses 40-60% of your total electricity
• Block tariffs reset to cheapest rate on 1st of each month
• Simple changes can cut your electricity bill by 30-50%

Understanding Block Tariffs – The Key to Saving Money

Block tariffs are the most important thing to understand about prepaid electricity in South Africa. Over 85% of municipalities use this system to encourage people to use less electricity.

How Block Tariffs Work

Think of block tariffs like a ladder. The more electricity you buy in one month, the higher you climb on the price ladder:

• Block 1 (cheapest): First units you buy each month
• Block 2 (more expensive): After you use up Block 1
• Block 3 (most expensive): After you use up Block 2

The magic date: On the 1st of every month, your block tariff resets to Block 1 (cheapest rate).

✅ Smart Buying Strategies

1. Buy Early in the Month

Always buy your main electricity purchase between the 1st and 5th of each month. This ensures you get the maximum units at the cheapest Block 1 rate.

2. Buy Only What You Need

Don’t buy extra electricity “just in case.” Any leftover units you buy will be at the most expensive Block 3 rate. It’s better to buy small top-ups at the start of the next month.

3. Avoid Bulk Buying

Many people think buying R1000 worth of electricity at once saves money. This is wrong! You’ll pay the cheapest rate for the first portion, then expensive rates for the rest.

Geyser Saving Tips – Cut Your Biggest Energy User

Your geyser uses 40-60% of your total electricity. A 150-litre geyser can cost R25 per day to run if not managed properly. Here’s how to cut that cost in half:

1. Install a Geyser Blanket (Save 8-10%)

A geyser blanket costs about R150 and saves about R200 per year. It keeps your water hot for longer, so the geyser doesn’t work as hard.

2. Use a Timer Switch (Save 15-18%)

Set your geyser to turn on 1-2 hours before you need hot water (morning and evening). Turn it off during the day when nobody is home.

3. Lower the Temperature

Set your geyser thermostat to 55-60°C instead of 70°C. This is still hot enough for showers and uses much less electricity.

4. Insulate Hot Water Pipes

Wrap foam insulation around exposed hot water pipes. This keeps the water hot as it travels from the geyser to your taps.

✅ Energy-Efficient Appliances

LED Light Bulbs

Replace all your bulbs with LED lights. They use 80% less electricity than old incandescent bulbs and last much longer. A 6-watt LED gives the same light as a 60-watt old bulb.

Look for Energy Star Ratings

When buying new appliances, look for the South African Energy Efficiency Label (SAEEL). Choose appliances with A+ or A++ ratings.

Smart TV vs Old TV

Modern LED TVs use 30-100 watts. Old plasma TVs can use 300-400 watts. If you have an old TV, consider upgrading.

Daily Money-Saving Habits

Kitchen Tips

• Only boil the water you need in your kettle
• Use a microwave instead of the oven for small meals
• Match pot size to stove plate size
• Use a pressure cooker for dishes that take long to cook

Heating and Cooling

• Use fans instead of air conditioning when possible
• Set air conditioners to 23-24°C, not lower
• Wear warm clothes and use blankets instead of heaters
• Close curtains during hot days to keep rooms cool

Laundry Tips

• Wash clothes in cold water when possible
• Air-dry clothes instead of using a tumble dryer
• Iron clothes while they’re slightly damp
• Wait for a full load before using the washing machine

⚠️ Common Electricity Buying Mistakes to Avoid

• Buying electricity at the end of the month – You’ll pay the highest rates
• Buying from unknown vendors – Some charge extra fees
• Not checking your meter reading – Make sure units are loaded correctly
• Buying too much at once – You’ll move into expensive blocks

✅ Alternative Energy Solutions

Solar Water Heating

A solar geyser can provide up to 90% of your hot water needs. It costs R15,000-25,000 to install but pays for itself in 3-5 years through electricity savings.

Solar Panels for Your Geyser

You can convert your existing electric geyser to run on solar power. This costs less than a full solar geyser system and still gives big savings.

Gas Geysers

Gas geysers only heat water when you need it. They work during load shedding and use no electricity. Installation costs R8,000-15,000.

Small Solar Solutions

Consider small solar lights for your garden and security lighting. Solar phone chargers and radios can also reduce your electricity use.

🚨 Important: 2025 Electricity Price Changes

Electricity prices increased by 12.72% in July 2025. This makes it even more important to save electricity. Current rates range from R2.50 to R4.75 per unit, depending on your municipality and usage block.

The good news: All the tips in this guide become more valuable when electricity prices are high. Every unit you save is worth more money!

Start Today: Buy electricity early in the month, install a geyser blanket, and switch to LED bulbs. These three changes alone can save you 20-30% on your electricity bill.

Plan for the Future: Consider a geyser timer, solar water heating, or gas alternatives. These bigger investments pay for themselves within 2-3 years.

Track Your Savings: Keep receipts of your electricity purchases and compare months. You’ll be amazed at how much you can save with these simple changes!