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RFS Tariffs 2022/23

Tariff Definition?

A combination of charges and rates covering different aspects of electricity supply, price signals and cross subsidies grouped into a coherent set of charges.

Tariff structure

The combination of different charges and the relationship to each other.

General Tariff Principles

Section 16 of the Electricity Regulation Act of 2006 states that the setting of prices,

charges, tariffs and the regulation of revenues:

  • must enable an efficient licensee to recover the full cost of its licensed activities,

including a reasonable margin or return;

  • must provide for or prescribe incentives for continued improvement of the technical

and economic efficiency with which services are to be provided;

  • must give end users proper information regarding the costs that their consumption

imposes on the licensee's business;

  • must avoid undue discrimination between customer categories; and

  • may permit the cross-subsidy of tariffs to certain categories of customers.

Tariff user categories in RFS

  • Domestic or Residential Customers

    • Conventional Time-of-use (TOU) or prepaid tariff is applied.

  • Commercial Customers/ Small & medium businesses

    • Single phase Time-of-use (TOU) or prepaid tariff is applied

    • Three phase Time-of-use (TOU) tariff is applied

  • Industrial Customers or large power users (Normally industries in manufacturing)

    • Time-of-use (TOU) tariff is applied.

You want to know why your electricity tariffs increase every year?

Here are some answers.

  • Energy prices rely on the national price inflation, which was 5.7% in January 2022

  • The prices are mostly determined by Eskom, which produces almost the totality of electricity supplied in South Africa.

  • Eskom calculates its selling price based on the inflation, the government policy and its own company strategy.

  • The increase asked by Eskom has to be approved by the NERSA – the National Energy Regulator – which checks if the increase is reasonable.

  • Finally, for non-direct Eskom consumers, municipalities act as resellers of electricity to the final clients (you, individuals as well as businesses). They decide their electricity tariffs based on Eskom tariffs, adding their margin.

Who ensures fair tariffs?

In South Africa the National Regulator or NERSA is responsible for determining tariff guidelines and pricing. As such only tariffs that are approved by NERSA yearly can legally be applied to electricity users.

How does Mafube’s tariffs compare to Eskom and other Munics?

Below is a table depicting the % increase NERSA approved for municipalities to increase their tariffs versus the % increase RFS applied for.

One will note RFS applied for lesser increases yearly resulting in the community of RFS paying -8.59% less over the last 10 years.

Below is a comparison of Mafube’s prepaid domestic electricity cost vs other municipalities.

In regards to Eskom RFS is selling prepaid electricity at R1.95/KWh for its 1st step, while Eskom is selling at R1.99/KWh for its first step.

The lesser tariff increases applied for by RFS is due to the electricity losses being reduced to less than 6% which is below the 15% accepted industry standard.

How can you help?

All power outage issues can be reported to us through the below channels.

  • Sharecall line: 0860 111 440

  • sms 44626 or

  • whatsapp 076 352 3347

Learn more about us:

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