Ndlambe electricity service charges are based on a NERSA approved cost-of-supply study. The study segments the served consumers and this note looks only at the structural tariff changes for the customer segment with a service of less than or equal to 20 ampere capacity.

The report documents that the basic service charge has been adjusted from R346.91 to R0 and the Block 1 charge per unit has increased from R1.5565 to R2.0011. Blocks 2, 3, and 4 are left unchanged.

With this data we can compute the electricity charge for typical consumers, and this is shown in the table and accompanying chart.

Consumption [kW]	50	100	200	300	400	500	600	700	800	900
Charge before rate change [R]	424.7	524.8	724.9	925.0	1206.7	1488.3	1770.0	2100.2	2430.5	2760.8
Charge after rate change [R]	100.1	200.1	400.2	600.3	882.0	1163.6	1445.3	1775.6	2105.8	2436.1
Percent reduction in charge	-76%	-62%	-45%	-35%	-27%	-22%	-18%	-15%	-13%	-12%

Consumers in the lowest category of consumption (50 units) are getting a 76% reduction in electricity service charges as a result of the structural changes to the electricity tariffs.

These facts might come as a surprise to some Ndlambe ratepayers as the cost-of-supply study suggests that for this category of consumers there is no structural tariff change.