WHAT IS A HOME USER FEE AND WHY DO I NEED TO PAY IT?
Category Advice
In July 2018 the City of Cape Town municipality introduced the now familiar "Home User Fee." This blanket fee is levied on ALL residential pre-paid electricity meter users, irrespective of electricity consumption. It is a fixed monthly charge raised against the electricity consumer, reflecting on a property owner's rates account and, along with all City of Cape Town tariffs, is reviewed annually in July. It recently increased to R194.29 per month, inclusive of VAT.
The City of Cape Town justifies this charge as going towards operating and maintenance costs associated with electricity provision within the municipality.
This fee is generally recovered from residential tenants, being directly related to the supply of services to them.
Author: Sandi Nel