Ever wondered why you sometimes get fewer prepaid electricity units even though you spend the same amount? It’s not a mistake; it’s how the Inclining Block Tariff (IBT) system works. Mogale City uses this tariff to ensure fair, consumption-based billing.

Here’s what every household should know:

• Electricity is sold in blocks (tiers), each with its own price per kWh
• Block 1 is the cheapest, giving you the most units for your money
• Each time you buy electricity within the same month, you move into higher blocks with higher prices
• As the block price increases, the same amount of money buys fewer units
• All blocks reset on the first of every month, returning you to the cheapest block

Why does this happen?

Mogale City Local Municipality’s assistant manager for media and PR, Refilwe Mahlangu, explained that the system tracks your total monthly kWh purchases.

Once you use up the cheaper blocks:

• You automatically move into the next, more expensive block
• Units cost more
• The same purchase amount results in fewer units

Buying early in the month gives you more units because you are still in Block 1.

Example:

Lebo buys R200 worth of electricity on March 1. Because it’s her first purchase of the month, she pays Block 1 prices and receives more units.
By March 20, she buys another R200. This time, she receives fewer units because she has moved into Block 2 or 3, where electricity is more expensive.
On April 1, she buys again and receives more units because the blocks have reset to Block 1.

Key tips:

• Buy electricity once per month, preferably at the beginning
• Avoid several small purchases – they push you into higher blocks faster
• Try not to top up in the last week of the month unless necessary
• Monitor your usage to plan your purchases