Eskom announced yet another tariff increase for 2026. Your R500 does not stretch as far as it did last year. The lights stay on for fewer hours. The geather uses more of your budget. And you are left wondering: How many units am I actually getting for my money?
The answer is not simple. It depends on where you live, which municipality bills you, whether you are on prepaid or post-paid, and whether you fall into the indigent or lifeline tariff categories.
This guide provides the complete breakdown of how many electricity units R500 buys in South Africa for 2026. We cover Eskom direct customers, major metropolitan municipalities, and the factors that influence your unit price.
How Many Units Of Electricity For R500 In 2026? Complete Guide
How Electricity Is Priced
Electricity in South Africa is sold in kilowatt-hours. One kilowatt-hour is the amount of energy used by a 1,000-watt appliance running for one hour.
The price per kilowatt-hour is determined by:
– Eskom’s bulk tariff, which increases annually.
– Municipal distribution costs and markups.
– Incline Block Tariff pricing, where the more you use, the more you pay per unit.
– Time-of-use tariffs for some customers.
– Service and capacity charges, which are separate from consumption.
For most residential prepaid customers, you pay a flat rate per unit, but that rate varies significantly by location.
Electricity Tariff Comparison (Units for R500 in 2026)
| Municipality / Provider | Tariff Name | Units for R500 |
|---|---|---|
| Eskom Direct (Block 1) | Homeflex | 357 units |
| City of Johannesburg | Prepaid Residential | 278 units |
| City of Cape Town | Domestic Prepaid | 294 units |
| eThekwini (Durban) | Residential Prepaid | 312 units |
| Tshwane (Pretoria) | Prepaid Residential | 270 units |
| Ekurhuleni | Residential Prepaid | 276 units |
| Nelson Mandela Bay | Residential Prepaid | 288 units |
| Mangaung (Bloemfontein) | Residential Prepaid | 302 units |
| Buffalo City | Residential Prepaid | 296 units |
Insights
- Best value overall: Eskom Direct (Homeflex Block 1) at 357 units, significantly higher than municipal providers.
- Top-performing city: Durban (eThekwini) at 312 units, followed by Bloemfontein (302) and Buffalo City (296).
- Most expensive cities: Pretoria (270 units) and Johannesburg (278 units) offer the least electricity for R500.
- Regional spread: There’s a gap of nearly 90 units between Eskom Direct and Pretoria, showing how tariffs vary widely across municipalities.
Key Takeaway
Customers on Eskom Direct tariffs enjoy the most units for R500, while major metros like Johannesburg and Pretoria are among the least cost-efficient. Durban and Bloemfontein stand out as the best municipal options.
Note: These are estimates based on approved tariff increases for 2026. Actual units may vary slightly depending on the exact date of purchase and any municipal adjustments.
Eskom Direct Customers
If you are billed directly by Eskom, not a municipality, you fall under the Homelight or Homeflex tariffs.
Homelight 20A (20 Amp)
– Monthly service fee: Approximately R250
– Energy charge: R1.40 per unit
With R500:
– R250 goes to service fee.
– R250 remaining buys 178 units.
Total: 178 units for R500, but you also get your service fee covered for the month.
Homeflex (60A to 80A)
– Monthly service fee: Approximately R450
– Energy charge: R1.35 per unit
– Capacity charge: Based on your breaker size, typically R150 to R300
With R500:
– If capacity and service fees total R450, remaining R50 buys 37 units.
– If you have already paid service fees earlier in the month, R500 buys 370 units.
Eskom direct tariffs are complex. Your first R500 of the month mostly covers fixed charges. Subsequent purchases go entirely to units.
City of Johannesburg (City Power)
City Power increased tariffs for 2026 by approximately 12.8 percent.
Residential Prepaid (Block 1, 0 to 500 kWh)
– Energy charge: R1.80 per unit
R500 ÷ R1.80 = 278 units
Block 2 (501 to 1,000 kWh)
– Energy charge: R2.20 per unit
R500 ÷ R2.20 = 227 units
Most households stay within Block 1. If you use more than 500 units per month, your effective price per unit increases.
City of Cape Town
Cape Town has some of the lowest electricity tariffs in South Africa due to the city’s own electricity generation and prudent management.
Residential Prepaid (Domestic, 0 to 600 kWh)
– Energy charge: R1.70 per unit
R500 ÷ R1.70 = 294 units
Block 2 (600+ kWh)
– Energy charge: R2.10 per unit
R500 ÷ R2.10 = 238 units
Cape Town also offers a time-of-use tariff for customers with smart meters, allowing cheaper electricity overnight.
eThekwini (Durban)
Durban’s tariffs are set by eThekwini Municipality.
Residential Prepaid (Lifeline 1, 0 to 350 kWh)
– Energy charge: R1.60 per unit
R500 ÷ R1.60 = 312 units
Block 2 (351 to 500 kWh)
– Energy charge: R1.90 per unit
R500 ÷ R1.90 = 263 units
eThekwini offers a lifeline tariff for low-usage households, making it one of the more affordable metros for electricity.
City of Tshwane (Pretoria)
Tshwane’s tariffs increased significantly for 2026.
Residential Prepaid (Block 1, 0 to 400 kWh)
– Energy charge: R1.85 per unit
R500 ÷ R1.85 = 270 units
Block 2 (401 to 650 kWh)
– Energy charge: R2.30 per unit
R500 ÷ R2.30 = 217 units
Tshwane also charges a fixed monthly service fee on post-paid accounts, but prepaid customers pay only for units purchased.
Ekurhuleni Metropolitan Municipality
Ekurhuleni covers the East Rand, including towns like Germiston, Boksburg, and Kempton Park.
Residential Prepaid (Block 1, 0 to 400 kWh)
– Energy charge: R1.81 per unit
R500 ÷ R1.81 = 276 units
Block 2 (401 to 650 kWh)
– Energy charge: R2.21 per unit
R500 ÷ R2.21 = 226 units
Nelson Mandela Bay (Gqeberha / Port Elizabeth)
Residential Prepaid (Block 1, 0 to 350 kWh)
– Energy charge: R1.74 per unit
R500 ÷ R1.74 = 288 units
Block 2 (351 to 600 kWh)
– Energy charge: R2.14 per unit
R500 ÷ R2.14 = 234 units
Mangaung (Bloemfontein)
Residential Prepaid (Block 1, 0 to 400 kWh)
– Energy charge: R1.66 per unit
R500 ÷ R1.66 = 302 units
Block 2 (401 to 600 kWh)
– Energy charge: R2.06 per unit
R500 ÷ R2.06 = 243 units
Buffalo City (East London)
Residential Prepaid (Block 1, 0 to 350 kWh)
– Energy charge: R1.69 per unit
R500 ÷ R1.69 = 296 units
Block 2 (351 to 600 kWh)
– Energy charge: R2.09 per unit
R500 ÷ R2.09 = 239 units
Incline Block Tariff Explained
Most municipalities use an Incline Block Tariff structure. The more electricity you use in a month, the more you pay per unit for the higher blocks.
Example:
– Block 1 (0 to 400 kWh): R1.80 per unit.
– Block 2 (401 to 600 kWh): R2.20 per unit.
– Block 3 (601+ kWh): R2.60 per unit.
If you buy R500 worth of electricity and you are in Block 1, you get 278 units.
If you buy R500 worth and you are already in Block 2 because you purchased earlier in the month, you get only 227 units.
The system resets at the start of each calendar month.
Lifeline Tariffs
Many municipalities offer discounted lifeline tariffs for indigent households and low-usage customers.
Requirements typically include:
– Registered indigent status with the municipality.
– Consumption below a certain threshold, often 350 kWh per month.
– Proof of income below a specified level.
Lifeline tariffs can be as low as R1.20 per unit, meaning R500 would buy 416 units.
Check with your local municipality if you qualify.
Prepaid vs. Post-Paid
Prepaid:
– You pay before you use.
– No surprise bills at month end.
– No service fees on most prepaid systems.
– You can track usage easily.
Post-paid:
– You pay after you use.
– Monthly service fees apply.
– Possible surprise bills if usage spikes.
– More complex tariff structures.
For most households, prepaid is simpler and helps with budgeting.
How To Make R500 Go Further
1. Shift usage to off-peak times where time-of-use tariffs apply.
2. Install energy-efficient lighting and appliances.
3. Insulate your geyser and use a timer.
4. Cook with gas where possible.
5. Use a heat pump or solar for water heating.
6. Monitor your usage with a smart meter or prepaid display.
7. Buy electricity in bulk before tariff increases take effect.
Electricity Price Increases 2026
Eskom was granted a 12.7 percent tariff increase for 2026. Municipalities applied their own increases, ranging from 11 percent to 15 percent.
This means:
– The same R500 bought more units in 2025.
– The same R500 will buy fewer units in 2027.
– Buying electricity now, before further increases, is a form of hedging.
Common Questions, SEO FAQ Section
How many units of electricity does the average South African home use per month?
The average household uses 500 to 800 kWh per month. A small flat may use 300 kWh. A large house with pool and air conditioning can use 1,500 kWh or more.
How much is 1 unit of electricity in South Africa in 2026?
Between R1.35 and R2.60 depending on your municipality and consumption block.
Can I buy electricity for R500 if I have a pre-paid meter?
Yes. R500 is a common purchase amount. Enter the voucher number at your meter, and the units will be added to your balance.
Do I pay VAT on electricity?
Yes. VAT at 15 percent is included in the price per unit.
What is the cheapest time to use electricity?
For time-of-use tariffs, overnight between 10 PM and 6 AM is cheapest. For standard residential tariffs, there is no price difference by time.
How do I find my municipality’s electricity tariff?
Check your last electricity purchase receipt. It shows the price per unit. Alternatively, visit your municipality’s website.
Can I get a refund if I move and have units left on my meter?
Yes. Most municipalities will refund you for unused units when you close your account, though administration fees may apply.
Why do I get fewer units for R500 in December than in January?
Tariffs increase annually, usually in July. If you buy in December, you are on the higher tariff that took effect in July. January is the same tariff.
Is it cheaper to buy electricity from Eskom directly or from the municipality?
Eskom direct tariffs are often lower per unit, but they include fixed monthly charges. For low-usage households, municipality prepaid may be cheaper. For high-usage households, Eskom direct may work out better.
How can I check if I am on the correct tariff?
Contact your municipality or Eskom and ask for a tariff review. You may be on a commercial or industrial tariff incorrectly.
Summary: What R500 Buys You in 2026
| City | Units |
|---|---|
| Durban | 312 |
| Bloemfontein | 302 |
| East London | 296 |
| Cape Town | 294 |
| Port Elizabeth | 288 |
| Johannesburg | 278 |
| Ekurhuleni | 276 |
| Pretoria | 270 |
| Eskom (after fees) | 37–370 |
Insights
- Best value: Durban leads with 312 units, followed closely by Bloemfontein and East London.
- Most expensive: Pretoria offers the lowest at 270 units, reflecting higher electricity costs.
- Eskom variability: Depending on fees and surcharges, R500 can buy anywhere between 37 and 370 units, showing how charges drastically affect affordability.
- Urban differences: Even within major metros, there’s a spread of over 40 units between Durban and Pretoria, highlighting regional pricing disparities.
This snapshot shows that location heavily influences electricity affordability in South Africa, with Durban offering the most units for R500, while Pretoria residents get significantly less.
The exact number depends on your location and consumption habits. Use the table as a guide, but check your local municipality’s published tariffs for the most accurate figure.
Final Warning: Tariffs Change
Municipalities publish new tariffs in June or July each year. The figures in this guide are estimates based on approved increases for 2026. By mid-2026, another round of increases may be announced for 2027.
If you want to lock in current prices, buy electricity now. Once the new tariffs take effect, your R500 will buy fewer units.
Official Resources:
– Eskom: www.eskom.co.za
– NERSA (National Energy Regulator): www.nersa.org.za
– Your local municipality website
—
This guide was last updated for 2026 standards. Electricity tariffs are subject to change without notice. Always verify current prices on your last purchase receipt or with your local municipality before budgeting.