NORTHERN CAPE DEPARTMENT OF EDUCATION

MATHEMATICAL

LITERACY

LEARNER NOTES

TARIFF SYSTEMS
A tariff is the amount at which a single unit for a service is charged e.g.
Cell phone – per minute or per second
Electricity - per kilowatt-hours
Water – per kilolitre

Many household accounts are based on tariffs.

These accounts are always for the previous month, because the service is not paid for in
advance.

WATER TARIFFS

 Water usage is measured in kilolitre (kℓ)

 The cost of water is determined according to a sliding scale. The more water you use,
the higher the rate charged.
 VAT (Value Added Tax) is charge on water cost.

Calculate the VAT (15%) inclusive water Cost, if 38 kℓ of water was used.

 Water cost according to this tariff structure DO NOT mean that if you use 38 kℓ of
water then you calculate it according to a flat rate, namely:
38kℓ × 69,10 = R2 625,80. This is TOTALLY WRONG ×
Water tariff charges
Tariff summary Tariff - Rand per kilolitre
(in kilolitre) (VAT Exclusive)
0 – 6 kℓ × 15,50
More than 6 – 10kℓ × 22,25
More than 10 – 35 kℓ × 31,45
More than 35 kℓ × 69,10

First calculate the kℓ per interval:

THE CORRECT CALCULATION USING THE SLIDING SCALE: 
Each interval has its own tariff:

Subtract the end points of the interval to get the maximum amount of kℓ used per bracket:
Interval 1: 6 kℓ used
Interval 2: 10 – 6 = 4 kℓ
Interval 3: 35 – 10 = 25 kℓ
Interval 4: The amount use in this interval is the amount above 35 – 35 etc. 38 – 35 = 3

Adding the kilolitres used =

6 + 4 + 25 + 3 = 38 kℓ

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 Tariff summary Amount Tariff Amount
(in kilolitre) of kℓ Rand per kilolitre
(VAT Exclusive)
0 – 6 kℓ 6 × 15,50 R93,00
More than 6 – 10 kℓ 4 × 22,25 R89,00
More than 10 – 35 kℓ 25 × 31,45 R786,25
More than 35 kℓ 3 × 69,10 R207,30
TOTAL 38 kℓ R 1 175,55

VAT inclusive = R 1 175,55 × 1,15

= R1 351,88

ELECTRICITY TARIFFS
1. Electricity is charged per kWh (KiloWatt – hour) in cents or rand.
2. Electricity can also be charged according to a sliding scale or it can be charged at a
flat rate.
3. If charged according to a sliding scale, use the same procedure as explained in water
tariffs.

Calculate in Rand the electricity costs for the following monthly consumption:
1.1 200 kWh in 2019
1.2 380 kWh in 2018
Electricity purchase blocks for 20 Amp Tariff (cent / kWh)
2018 2019
Block 1 0 – 350 kWh 105,36 108,76
Block 2 More than 350 kWh (>350) 119,00 122,30

Convert tariffs or total cost in cents to rand by dividing by 100.

(Reason: There’s 100 cents in 1 Rand)

Convert 108,76c to rand

= 108,76÷ 100
= R1,0876
`
1.1
Electricity purchase blocks for 20 Amp Tariff (cent / kWh)
2019
Block 1 0 – 350 kWh 200 × 1,0876 = R217,52
Block 2 More than 350 kWh (>350)

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1.2
Electricity purchase blocks for 20 Amp Tariff (cent / kWh)
2018
Block 1 0 – 350 kWh 350 × 1,0536 = R368,76
Block 2 More than 350 kWh (>350) 30 × 1,1900 = R 35,70
TOTAL 380 = R404,46

This is an example of a flat rate:

A local municipality charges 124,5c / kWh (VAT inclusive) for pre-paid electricity.
Calculate how many units in kWh a household will get if R500 of pre-paid electricity
is purchased.

Pre-paid charges in rand = R1,245

Number of units = R500 ÷ R1,245
≈ 401,606 units

CELL PHONE DATA TARIFFS:

John needs data to do research. She finds one of the providers is offering internet usage
according to the following rates:
OPTION 1 OPTION 2
500 MB (megabytes) 1 GB (gigabyte, 1 000 MB = 1 GB)
Fixed monthly cost R150 R200
Additional monthly 50c for every MB used over 50c for every MB used over 1 GB
cost 500 MB
Conversion of GB to MB:
1 000 MB = 1 GB

John needs to choose between OPTION 1 and OPTION 2

OPTION 1 can be represented by the following formula:
Cost (in Rand) = 150 + 0,5 × (number of megabytes used – 500)
Calculate the cost of using 900 MB on OPTION 1.

Cost (in Rand) = 150 + 0,5 × (number of megabytes used – 500)

= 150 + 0,5 × (900 – 500)
= 350

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The following table shows the monthly cost for OPTION 2.

Monthly Cost for OPTION 2:

Number of MB 0 600 800 1 000 1100 1500 1800
used each
month
Cost (In Rand) 200 200 200 200 250 450 A

Calculate the value of A.

A = 200 + 0,5 × (1 800 – 1 000)
= 200 + 0,5 × (800)
= R600

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QUESTION 1
The graphs below show the water tariffs for Cape Town and Johannesburg.
Study the graphs below and answer the questions which follow.

CAPE TOWN
Kilolitres (kℓ) Increase
used Price (%)
per month
Free
Step 1 0–6 New
R4,56
R16,54
Step 2 6–10,5 7,3%
R17,75
R23,54
Step 3 10,5–20 10,3%
R25,97
R40,96
Step 4 20–35 6,6%
R43,69
R66,41
Step 5 35–50 71,6%
R113,99
R200,10
Step 6 > 50 51%
R302,24

JOHANNESBURG
Kilolitres (kℓ) used Increase
per month Price (%)
Free
Step 1 0–6 New
R7,14
R7,14
Step 2 6–10 6,2%
R7,58
R12,07
Step 3 10–15 9,1%
R13,17
R17,65
Step 4 15–20 11,2%
R19,63
R24,03
Step 5 20–30 12,2%
R26,96
R25,81
Step 6 30–40 13,2%
R29,22
R32,27
Step 7 40–50 18%
R37,11
New
Step 8 > 50 20%
R38,72

Key: 2016/17 2017/18

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1.1 Identify the step that indicates the largest increase (in rand) in Cape Town's
water tariff from 2016/17 to 2017/18. (2)

1.2 Determine in which ONE of the two cities water is more expensive. (2)

1.3 Calculate the cost of 3,5 kℓ of water in Johannesburg during 2017/18. (2)
[06]

QUESTION 2

The table below shows the Emfuleni Local Municipality domestic electricity tariffs
during a low season period.
TABLE 1: EMFULENI LOCAL MUNICIPALITY DOMESTIC
ELECTRICITY TARIFFS (R) FOR 2016/17
Household
All tariffs are 15% VAT exclusive
Block 1 0 –50kWh R0,9015 per kWh
Block 2 51–350kWh R1,0161 per kWh
Block 3 351– 600kWh R1,3594 per kWh
Block 4 above 600 kWh R1,6314 per kWh
[Source: www.emfueni.gov.za]

2.1 Show with calculations, the amount paid for using 400 kWh of
electricity. (4)

2.2 Calculate the amount (to two decimal places) for a customer who used
183,9745 kWh of electricity in Block 3. (3)
[07]

QUESTION 3

Below is an extract from Mr Daniels' monthly municipal statement including the residential
water and sewer tariff tables.

3.1 Use the stepped residential water tariff table to calculate the value of B, the
total amount for water usage. (4)
[04]

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ACCOUNT NUMBER: 345 678 8900 60
SUBTOTAL TOTAL
(R) AMOUNT
(R)
Water and sewer
Reading period 2019/01/16 to 2019/02/12
Meter reading Start: 795 000
End: 807 000
Water usage 12 kℓ (kilolitres)
Daily average consumption 0,429 kℓ
Charges for 12 kℓ are based on a sliding scale for a 28-day period
Total water charge (excluding VAT) B
Water demand management levy 22,64
Monthly sewer charge based on stand size (excluding VAT) A
VAT: 15% 73,75

PAYMENT DUE XXX

DUE DATE 2019/03/27

STEPPED RESIDENTIAL WATER SEWER MONTHLY CHARGE BASED ON

TARIFF STAND SIZE
KILOLITRES 2018/19 STAND SIZE (m2) 2018/19
PER TARIFF (R/kℓ) TOTAL
CONNECTION EXCLUDING 15% CHARGE
PER MONTH VAT (IN RAND)
EXCLUDING
15% VAT
2
from 0 to 6 8,28 Up to and including 300 m 194,67
above 6 to 10 8,79 Larger than 300 m2 to 1 000 m2 378,95
2 2
above 10 to 15 15,00 Larger than 1 000 m to 2 000 m 573,29
2
above 15 to 20 21,83 Larger than 2 000 m 836,02
[Adapted from www.joburgwater.co.za and www.jotariffs.co.za]

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QUESTION 4

The sanitation tariffs for Johannesburg and Cape Town are presented in TABLE 1.

Johannesburg uses the area of a property to determine the sanitation bill. Cape Town uses a
percentage of the total water usage to determine the sanitation bill (the same way as they
calculate the water bill.)

TABLE 1 shows the tariffs of Johannesburg (excluding VAT) and Cape Town (including
VAT).

TABLE 1: SANITATION TARIFFS FOR JOHANNESBURG AND CAPE TOWN

JOHANNESBURG: SANITATION TARIFFS – DOMESTIC (VAT excl.)
 Up to and including 300 m2 R228,06
 Larger than 300 m to 1 000 m
2 2
R443,96
 Larger than 1 000 m to 2 000 m
2 2
R671,63
 Larger than 2 000 m2 R967,71

CAPE TOWN: SANITATION TARIFFS – DOMESTIC (VAT incl.)

USAGE TARIFF INCREASE FROM
PREVIOUS
 04,2 kℓ R16,03 per kℓ R0,66 increase per kℓ
 4,27,35 kℓ R22,02 per kℓ R0,91 increase per kℓ
 7,3524,5 kℓ R30,92 per kℓ R1,28 increase per kℓ
 24,535 kℓ R48,65 per kℓ R2,01 increase per kℓ
[Adapted from www.pikitup.co.za and www.capetown.gov.za]

NOTE: Sanitation refers to waste water that is drained from a household.

Use the information above to answer the questions that follow.

4.1 Write down, to the nearest ten cents and excluding VAT, the cost for sanitation
in Johannesburg if a property is 175 m2. (2)

4.2 Calculate the cost for 4,1 kℓ sanitation in Cape Town before the increase. (4)

4.3 Mr Jones lives in Johannesburg and Ms Brown lives in Cape Town. They both
own a property with an area of 550 m2 and each was billed for 22 kℓ sanitation.

Use the table above to determine the difference in the cost of sanitation for the
two properties. (8)

4.4 Explain how the tariff system used in Johannesburg is beneficial to

home owners in terms of water usage. (2)
[16]