City Power tariffs for business: Business vs LPU time-of-use

City Power's business customers usually choose between two tariff families: the Business tariff, an inclining block tariff with no demand charge for supplies of 100 kVA or less, and the Large Power User (LPU) low voltage tariffs, which add a demand charge per kVA but charge less for each kWh. Neither is cheaper for every site. The answer depends on how much capacity the site actually uses and, for the time-of-use version, when it uses energy. That is why Augos prices a site's measured interval data against every Eskom and municipal tariff it qualifies for before recommending a change.

What is the difference between the Business tariff and LPU?

The Business tariff charges only for energy, on an inclining block scale with five steps: the price per kWh rises as consumption crosses each step. There is no demand charge. It is for supply capacity of 100 kVA or less.

LPU low voltage tariffs split the bill differently. Energy costs less per kWh, but there is a demand charge for every kVA billed, and that charge is levied on the site's capacity, not on what it measures. On a May 2026 bill Augos reviewed, LPU demand was charged at R423.10 per kVA. The 2026/27 LPU LV time-of-use demand charge seen on another client's bill was R461.28 per kVA.

Energy rates on the bills Augos compared for one Johannesburg retailer:

Season	Business tariff	LPU
Winter	R3.6544 per kWh	R3.0620 per kWh
Summer	R3.4907 per kWh	R2.6141 per kWh

The time-of-use version of LPU (LPU LV TOU) goes further, with separate peak, standard and off-peak energy charges. That rewards a site that can keep load out of peak and penalises one that cannot.

When does moving to LPU time-of-use make sense?

Moving from the Business tariff to LPU time-of-use can make sense when a site's energy cost on the inclining blocks outweighs the demand charge it would carry on LPU, and when much of its consumption falls in standard and off-peak hours. The demand charge is a fixed cost for the capacity, so the site needs enough energy use at the lower rates to pay for it.

The risk is the time-of-use split. A projection rests on an assumed share of peak, standard and off-peak consumption. If the real share of peak is higher, the outcome changes.

When does moving back to the Business tariff make sense?

Moving from LPU to the Business tariff can make sense when a site is billed for far more capacity than it uses. A small shop billed on 70 kVA pays the demand charge on all 70 kVA every month, even if its measured demand is a fraction of that. The Business tariff removes the demand charge entirely, at the cost of higher energy rates. For a site with low consumption, the higher energy rates can cost much less than the capacity charge they replace.

Real cases from Johannesburg

Engen Fairlands (fuel site): Business to LPU LV time-of-use. Augos's July 2025 report projected approximately R700,000 a year from moving the site from the CoJ Business tariff (inclining block, five steps) to LPU LV time-of-use at 70 kVA, based on an assumed time-of-use split. The client applied in August 2025, and time-of-use billing started from the reading period 31 July to 28 August 2026. The first time-of-use bills were estimated and showed a peak share far higher than assumed; the City of Johannesburg is correcting them from the tariff change date. The outcome depends on the real split, so no saving is claimed yet.

Lewis Stores, Pritchard Street (Johannesburg CBD retail): LPU to Business. This is the reverse case. The store was on LPU LV with average measured demand of about 11.24 kVA, but was billed on 70 kVA at R423.10 per kVA (May 2026 bill). Augos recommended moving to the Business tariff, which has no demand charge but higher energy rates. Augos's projection is R16,500 a month, or R198,000 a year. The application has been submitted and the outcome is pending.

The same pattern of paying for unused capacity appears outside Johannesburg: PepsiCo's Continental Beverages site in Bloemfontein moved off a demand-based Centlec tariff after production stopped.

Why do the first time-of-use bills need checking?

The first bills after a tariff change are where errors appear. At Engen Fairlands the first time-of-use bills were estimated, and the estimated peak share was far higher than the site's assumed profile. An estimated split can wipe out the benefit of a time-of-use tariff until it is corrected. Checking each bill against measured, time-stamped consumption is how those errors are found. Augos bill verification does this as a routine.

What to check before you apply

• Your supply capacity (kVA) on the bill, and whether it is 100 kVA or less.
• Your measured demand over the last 12 months against the capacity you are billed on.
• Your monthly consumption and how much of it falls in each block on the Business tariff.
• Your real peak, standard and off-peak split from interval data, not an assumption.
• Winter and summer separately: energy rates differ by season.
• Who will check the first bills on the new tariff, and how estimated readings will be corrected.

For a fuller picture of how these charges fit together, see how electricity tariffs work. Augos manages tariff applications with the utility on the client's behalf, as the client's appointed representative, through its tariff optimisation service.

To find out whether your Johannesburg site is on the right City Power tariff, book a demo or call Augos on 087 093 6174.