Watch the clock and save

Cooking dinner or boiling water for a morning cup of coffee will soon cost you more.

The price of electricity in Johannesburg will, from July 1, be based on the time at which it is used: whether during peak time or off-peak hours.

City Power announced yesterday that the National Electricity Regulator of SA had approved its proposal for the implementation of a "residential time-of-use tariff".

The new tariff is intended to encourage switching consumption to off-peak hours and lessen pressure on the national grid.

The peak periods on weekdays are from 7am to 10am, and from 6pm to 9pm.

The off-peak price will be lower than the current flat rates, which will give an incentive for consumers to use electricity during off-peak periods.

The new system will work in conjunction with the new smart electricity meters, which allow City Power to monitor each customer's consumption. About 50000 households have had smart meters installed since their introduction. The city wants 150000 to be installed by the third quarter of this year. Eskom is piloting a pricing system similar to the new one for Johannesburg for its business customers.

In the pilot project, which began in October 2013, Eskom has the option of charging 5% more for electricity on days when the chances of load-shedding are high.

Eskom said first results were "promising" and customers had reduced consumption by 25% on the critical peak days.

Independent energy expert Chris Yelland said the system could save consumers money.

"I don't think City Power will impose this on every customer but it could be offered as an option to households .

"Residential customers will now know that, if they avoid using pool pumps, tumble dryers and washing machines during peak hours, they will save money, and in turn help both the city and Eskom," Yell and said.

He said that the new pricing method was "long overdue" and had long been used worldwide, but predominantly for industrial customers.