Understand your Electricity and Water calculation

Understand your Electricity and Water calculation

Electricity

Electricity is a fundamental aspect of modern life, powering our homes, businesses, and industries. It provides the energy needed to run appliances, lighting, heating, cooling, and various electronic devices. Whether generated from fossil fuels, renewable sources like solar or wind, or nuclear power, electricity plays a crucial role in powering our daily activities and sustaining economic development. Efficient use of electricity is essential for reducing energy costs, minimizing environmental impact, and ensuring reliable access to power for all.

Electricity fees are often the most scrutinized item on a Levy statement, particularly during the months of July to September when two significant events occur.

First - Winter

As we approach July, we bid farewell to autumn and welcome the chilly embrace of winter. This transition holds significance because it's cold, and the single most power-hungry item in a household is ANYTHING with an element. This includes essentials such as geysers (for warmer and longer baths and showers), stoves (longer cooking time for stews and soups), and the beloved morning coffee kettle. It's important to note that I have not even mentioned your heaters for those cold winter days. Yes, that means even if you don't use a heater (which is the first thing we are always told) your normal elements will draw MORE power. It takes more power to get cold water to a boiling point than it does to get mild water to boiling point.

Additionally, during winter, shorter daylight hours and longer evenings prompt earlier use of lighting compared to other seasons.

Second - Increases

In July, all Local Councils in Gauteng typically implement their annual increases on utilities, including water and electricity. Given the heightened electricity usage during this period, coupled with the tariff adjustments, residents often receive unwelcome account increases from July.

Usage - Usually shown as a variation of | Elec 578462/578832

Let's examine the process of measuring and calculating electricity usage.

The following image depicts a description which outlines the charges for electricity usage based on a meter reading. These readings are typically taken approximately every 30 days, with most readings occurring around the 15th of the month. The Description is broken down as follows: -

Breakdown of Electricity Description
  • Elec - indicates that this is for electricity.
  • 578462 - The "Green" column indicates the reading on the meter during the previous reading, typically taken approximately 30 days ago.
  • 578832 - The "Orange" column indicates the latest reading, which was taken recently.

To calculate your consumption the amount of kWh used during the previous reading and the current reading you need to subtract the previous reading from the latest reading for the given time period. The formula is as follows:

- [Latest Reading] - [Previous Reading] = Consumption

For example:

578832 (Latest Reading) - 578462 (Previous Reading) = 370 (Consumption)

The consumption is then calculated current period's tariff set by the local council. While some municipalities employ a straightforward multiplication method, others operate on a tiered system (also known as sliding scale) where the cost per kWh rises with increased usage. I will provide two examples to illustrate how these calculations vary across different councils.

COJ - City of Johannesburg

The following is an excerpt from the COJ (City Power) 2023/2024 Electricity Tariff. City Power operates on a step-based system, which means that users will be billed R2.0163 per kWh for the first 500 kWh and then R2.3140 per kWh from 501 kWh to 1000 kWh, and so forth.

It's important to note that the amounts shown do not include VAT.

2023/2024 City Power Tariff

The calculation for 370 kWh using the COJ (City Power) tariff will be as follows:

  • Consumption [370 kWh] × R2.0163 Tariff (Step 1) = R746.03
  • Adding VAT @15%: R746.03 x 1.15 = R857.93

Using an example where the user consumed 1300 kWh, there will be three steps in the calculation:

Step 1:(This is the calculate from 1kWh to 500kWh)
  • 500kWh x R2.0163 = R1 008.15
  • Adding VAT at 15%= R1 008.15 x 1.15 = R1 159.37
Step 2: (This is the calculate from 501kWh to 1000kWh)
  • 500kWh x R2.3140 = R1 157.00
  • Adding VAT at 15% = R1 157.00 x 1.15 = R1 330.55
Step 3:(This is the calculate from 1001kWh to 1300kWh)
  • 300kWh x R2.4847 = R745.41
  • Adding VAT at 15% = R745.41 x 1.15 = R857.22
Total:
  • = (Step 1 Total) + (Step 2 Total) + (Step 3 Total) = R3 347.14 for 1300kWh consumption

COE - City of Ekurhuleni

The following excerpt presents the Ekurhuleni 2023/2024 Electricity Tariff. Ekurhuleni operates on a fixed charge system, which may vary between winter and summer months. However, the charges for winter and summer months have remained consistent in recent years.

It's crucial to note that the amounts shown do not include VAT.

2023/2024 Ekurhuleni Electricity Tariff

This calculation is straightforward. The consumption of 370 kWh multiplied by the tariff of R3.3115 equals R1 225.25. Adding VAT at 15% [R1 225.25 × 1.15] = R1 409.03. Therefore, the cost for 370 kWh will be R1 409.03.

Water Usage

When it comes to water usage and the associated charges, the consumption and calculation follow a similar process as electricity. You calculate the consumption using the same method, and then apply the local council tariff in a similar manner. Some local councils have step systems for water charges, while others have fixed charges.

Nevertheless, you can use the methodology described above for all these calculations.

Sewer

When it comes to sewer charges, you'll notice variations among councils. Some may have a fixed monthly rate, while others might utilize a step-based system or fixed charges based on water consumption. An interesting observation in Ekurhuleni is that sewer charges often begin at a higher rate and decrease as water usage increases. This variation adds an interesting dimension to sewer billing practices.

10 Smart Ways to Save on Electricity and Water Bills

In today's world, where environmental consciousness and cost-effectiveness go hand in hand, finding ways to save on electricity and water bills is more important than ever. By implementing simple yet effective strategies, you can not only reduce your utility expenses but also contribute to conserving precious resources. Here are ten practical tips to help you save on your electricity and water bills.

1. Upgrade to Energy-Efficient Appliances:

Invest in energy-efficient appliances, such as refrigerators, washing machines, and air conditioners. These appliances are designed to consume less electricity while providing the same level of performance, helping you save on your electricity bill in the long run.

2. Unplug Unused Electronics:

Many electronic devices continue to consume energy even when turned off. Unplug chargers, computers, TVs, and other electronics when not in use to prevent "phantom" energy consumption and reduce your electricity bill.

3. Optimize Lighting:

Replace traditional incandescent bulbs with energy-efficient LED bulbs. LED bulbs use significantly less energy and last longer, reducing both your electricity bill and the frequency of bulb replacements.

4.Practice Water Conservation:

Implement water-saving habits, such as fixing leaks promptly, taking shorter showers, and turning off the tap while brushing your teeth. These small adjustments can add up to significant water savings over time.

5. Install Low-Flow Fixtures:

Replace old showerheads and faucets with low-flow fixtures to reduce water consumption without sacrificing water pressure. Low-flow fixtures can significantly decrease water usage in your home, resulting in lower water bills.

6. Utilize Timers and Smart Thermostats:

Use timers or smart thermostats to regulate heating and cooling systems. Set timers to adjust temperatures according to your schedule, ensuring that energy is not wasted heating or cooling an empty home.

7. Practice Efficient Laundry Habits:

Wait until you have a full load of laundry before running the washing machine or dishwasher. Using these appliances efficiently can save water and energy, reducing your utility bills and minimizing your environmental footprint.

8. Insulate Your Home:

Properly insulate your home to prevent heat loss during the winter and keep cool air inside during the summer. Insulation helps maintain a comfortable indoor temperature with less reliance on heating and cooling systems, resulting in lower energy bills.

9. Harvest Rainwater:

Consider installing a rainwater harvesting system to collect rainwater for outdoor use, such as watering plants or washing cars. Rainwater harvesting reduces dependence on municipal water supplies, resulting in lower water bills and promoting sustainability.

10. Educate Household Members:

Raise awareness among household members about the importance of conserving electricity and water. Encourage everyone to adopt energy and water-saving habits, such as turning off lights and fixing leaks promptly, to maximize cost savings and environmental benefits.

Saving on electricity and water bills doesn't have to be complicated. By implementing these ten simple tips, you can reduce your utility expenses, conserve valuable resources, and contribute to a more sustainable future for generations to come. Start implementing these cost-saving strategies today and enjoy the benefits of lower bills and a greener lifestyle.

I hope this provides valuable insight about the world of utilities and how they function.