Should you switch to prepaid utilities?
The cost of living has risen exponentially over the years. One of the most significant ways homeowners are feeling this effect is through utility bills. Coupled with rising food costs, inflation has gotten out of hand for the average citizen. However, there are ways to curb this endless drain on your finances. We look at how prepaid utilities might be the best fit for certain households.
How does prepaid water and electricity work?
This system works by installing prepaid meters in your home. They are designed to read and monitor your utility usage. Monitoring this can sometimes be difficult, but having a prepaid meter installed encourages users to be more mindful of their consumption as you have to buy your electricity and water allowance before you use it, rather than after such as the traditional method of utility bills. The meter runs off your remaining balance.
Is prepaid water more expensive?
Prepaid water costs the same. There are no differences in prices. It is less expensive because of budget control. It is beneficial to overall water supply, as it encourages efficient water use. Water utility companies also benefit from this method, as they receive payment upfront and experience less water wastage. Prepaid meters are a great way of conserving water resources.
What is the cheapest way to buy prepaid electricity?
Inclining Block Tariffs (IBT) is the biggest obstacle to overcome in your prepaid journey. Understanding this concept requires you to consider the time of the month you buy your electricity, the amount of electricity you will need for the month, the service provider to purchase from, the block your electricity usage falls under and other minor details. Once you have figured out the best plan of action to get your prepaid electricity for cheaper, you can enjoy reduced rates at an actionable, monthly rate.
Understanding the Incline Block Tariff System
Electricity prices are divided into certain categories which the system calls “blocks”. The first block is the most affordable and relies on you buying and consuming the right amount of electricity each month. When you start purchasing more, you fall into the second block which is more expensive. Your electricity can be priced higher depending on how many more times that month you repurchase, before eventually falling back into the first block place at the start of next month.
Consider how prepaid utilities can benefit your lifestyle
For new families looking to establish a household budget or the single professional who wants to manage their money well, prepaid utilities are a step in the right direction. Coupled with solar panels and energy-efficient appliances, you can greatly reduce your monthly bills. Using electricity and water wisely goes a long way towards making your home an eco-friendly place. In today’s uncertain times with electricity outages and water cuts, it is a good way to promote sustainability and encourage others to do the same.
Installing a prepaid meter is a simple process. All you need is a certified plumber to conduct the installation. You can begin the process of saving on your utility bills today. South Africa has a number of certified prepaid utility companies from which you can choose.
REALGLEN Properties guarantees the latest advice in the realm of real estate, while encouraging our readers and clients to make wise choices. Contact us today to source your dream property and get the ball rolling on your latest investment home.