2025 - TARIFF SYSTEM Gr11 - Learner
2025 - TARIFF SYSTEM Gr11 - Learner
TARIFF SYSTEM
● Tariffs are not always constant, Example: The price of electricity becomes more expensive
the more electricity you use.
● For Cell phones and electricity there are two main tariff system i.e., Prepaid and
Contract/Monthly billing.
● We are going to look at the following tariffs:
Municipal tariffs (Electricity, Water, Sewerage) / Telephone tariffs (E.g., Cell phone) / Transport (Bus/
taxi) / Bank fees
Objectives
By the end of this section, learners must be able to:
1. Work with the following tariff systems:
1.1 Municipal tariffs (e.g electricity, water, sewage)
1.2 Telephone tariffs (e.g cell phone, fixed line)
1.3 Transport tariffs (e.g bus, taxi, train)
1.4 Banking Charges (not included in this manual)
2. Calculate cost using given tariffs and/or formulae.
3. Draw and interpret graphs of various tariff systems
4. Compare TWO or MORE different options for a tariff system to determine the most
appropriate/cost effective option for individuals with particular needs.
5. Draw graphs to represent the different options and interpret the point(s) of
intersection.
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The table below indicates the example of sliding scales for electricity tariffs
Household (all tariffs are VAT exclusive)
VAT to be charged at 15%
Block 1 0 - 50 KWh R0,8375 per KWh
Block 2 51 - 350 KWh R0,9440 per KWh
Block 3 351 - 600 KWh R1,2629 per KWh
Block 4 Over 600KWh R1,5156 per KWH
Worked example 1
Use the table above to answer the questions that follow:
1.1 Write down the tariff per kWh charged in block 2.
1.2 Determine the amount to be paid for 250 kWh of electricity.
The tables below show the electricity tariff for Polokwane Municipality and City of Johannesburg.
POLOKWANE MUNICIPALITY
RESIDENTIAL TARIFF: Prepaid
CITY OF JOHANNESBURG
RESIDENTIAL TARIFF: Prepaid
Energy (kWh) Energy charge Energy charge Units
R/Month R/Month
Summer/Winter Summer / Winter 2018
2017
Block 1: A R116, 16 R124,49 0 / kWh
Block 2: (501 < 1000) R131, 97 R141,43 0 / kWh
Block 3: (1 001 < 2000) R141, 70 R151, 86 0 / kWh
Block 4: (2001 < 3000) R160, 07 R171, 55 0 / kWh
Block 5: (< 3001) R173, 47 R185, 91 0 / kWh
Electricity tariffs
The average increase of 7,17% is as applied to the National Regulator of South Africa.
1.1. Calculate the tariff difference in block 4 for the year 2017 and 2018 for the
City of Johannesburg. (2)
1.2. Covert the tariff amount in block 4 for Polokwane Municipality in 2018 to rands. (2)
1.3. Write down the interval A. (2)
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1.4. Calculate the VAT amount of the tariff in Block 1 for the City of Johannesburg in 2017. (2)
1.5. Identify the municipality that has the highest average increase in tariff. (2)
1.6. The city of Johannesburg has higher electricity tariffs than Polokwane, what might be the reason?
(2)
QUESTION 2 Activity 2
The table below shows the Emfuleni Local Municipality domestic electricity tariffs during a low
season period.
TABLE 2: EMFULENI LOCAL MUNICIPALITY DOMESTIC ELECTRICITY
TARIFFS (R) FOR 2016/17
Household
All tariffs are 14% 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
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)
QUESTION 1 Activity 3
Electricity can be purchased from Eskom in two ways, prepaid and postpaid.
Refer to the comparative table below to answer the questions that follow.
Table 1: Fixed monthly cost against cost per unit
1.1. Write down the fixed monthly cost for the prepaid system. (2)
1.2. The Smith’s household, consisting of 3 people, used 349,9 kWh of electricity on the post-paid
system. How much would they be expected to pay (excluding VAT) for their electricity
consumption? (4)
1.3. Mrs Smith worked out that when her daughter goes to university her bill will be two-thirds of the
amount calculated in QUESTION 1.2. Verify, showing all calculations, if her assumption is correct.
(6)
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• Water Tariff
Water tariffs
Water tariff, just like electricity tariffs also varies from one place to the other.
Note:
1 k ℓ = 1000 ℓ
➢ The amount payable for water also depends on the number of kl of water used during the
month.
➢ Water is charged at a sliding scale. The more water you use, the higher the rate at which
you are charged.
The table below indicates the example of sliding scales for water tariffs
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Question 2 Activity 4
The table below indicates the Mangaung local Residential water tariffs for 2016/2017 and
2017/2018. These tariffs are applicable for both the prepaid and billed accounts. All tariffs are
VAT exclusive.
Mangaung local municipality water tariffs (Residential)
QUESTION 2 Activity 5
0 to 10 R8.32
11 to 15 R10,68
16 to 20 R19,86
21 to 30 R31,54
31 to 40 R34,19
41 to 50 R44,97
More than 50 R49,60
Source: www.johannesburgwater.co.za
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To fix a crack in the side of the pool, 50 kl of water had to be drained from the pool.
With the use of water tariff table above, calculate the cost of refilling the pool
including vat.
Question2
Quick Quiz
Electricity can be purchased from Eskom in two ways, prepaid and post-paid.
Below is an adapted, comparative table to help you answer the questions that follow.
1. If a household uses 286 kWh of electricity on the post-paid system, how much
would they pay for their electricity consumption, excluding VAT?
2. A household bought electricity for R720, including VAT, on the prepaid system.
Determine how much electricity they can use.
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• Telephone tariffs
Pre-test Mathematical Literacy P1 FS/September 2021
QUESTION 1
1.1 TABLE 1 below is an extract from Tshepiso’s cellphone contract bill.
Usage Summary
Usage type Amount used (in minutes) Amount charged
National fixed line calls 12 R11,05
Cell C Calls 231 A
Other Mobile network Calls 127 R112,25
SMS/MMS Charge 6 SMSs/MMSs R0,00
Recharge amount R400,00
[Adapted from actual cellphone bill]
Use TABLE 1 and the information above to answer the questions that follow.
1.1.1 Explain the meaning of the term cost in this context. (2)
1.1.3 Write down the number of outstanding months for this contract. (2)
1.1.5 Determine the difference between the amounts used for other mobile
calls and the amount used for national fixed line calls. (2)
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Note:
Units can be in minutes or seconds
Contract cost = subscription fee + (total number of minutes – number of free minutes) ⨉ tariff
Example
Tshepo came across the following option as he was shopping for a new cell
phone.
Solution
Total amount = subscription fee + (Total minutes – free minutes) × tariff
Calculate the total amount Tshepo will pay if he used 75 minutes on a particular month.
= R279,00 + (75 – 50) × R0,99
= R279,00 + (25 × R0,99)
= R279,00 + R24,75
= R303,75
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Question 4 Activity 7
MaNdlovu has a landline telephone. A service provider has offered her a choice of two different
call packages
CALL PACKAGE 1 CALL PACKAGE 2
4.1 Write down a formula that can be used to calculate the total cost (in rands) for CALL
PACKAGE 2, in the form: Total cost (in rands) = … (2)
4.2 Using the formula in 3.2, calculate the total cost (in rands) if MaNdlovu made calls for a
total duration of 510 minutes. (4)
4.3 Determine, with calculations, the call package that will be cost effective for MaNdlovu if
she makes only 300 minutes of calls per month. (6)
Usage Summary:
Usage type Amount used (in minutes) Amount charged
National Fixed line calls 12 R11,05
Cell C Calls 231 A
Other Mobile network Calls 127 R112,25
SMS/MMS Charge 6 SMS’s/MMS’s R0,00
Recharge amount R400,00
Use TABLE 1 and the information provided above to answer the questions that follow:
1.1.Identify the total cost of the device.
1.2.Write down the number of outstanding months for this contract.
1.3.Calculate A, the amount charged for Cell C Calls.
1.4.Determine the difference between the amounts used for other mobile calls and the
amount used for national fixed line calls.
1.5.Express the monthly payment as a percentage of the outstanding commitment value.
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THE TOTAL COST FOR THREE DIFFERENT DEALS FROM A CELL PHONE COMPANY TABLED
BELOW:
Use the table and the information above to answer the questions that follow:
6.1. How much will Solly pay in cash for the phone if he chooses DEAL 1?
6.2. Use the values in the TABLE and draw line graphs for DEAL 1 and DEAL 3 on the
ANSWER SHEET
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1. Determine the formula for the total costs per month (excluding the phone) for Package 1 and 2.
2. Determine which package (for phone, internet and calls) is cheapest over 24 months if Niki
makes 6 hours of calls per month.
• Bank tariffs
Mini-Test MATHEMATICAL LITERACY P1 2021
4. Mrs McKenzie and her family went to Starland to do some stargazing while they were
in Sutherland. John, the owner, bought the property just outside Sutherland as an
investment in 2015. He organises a stargazing tour on his property each evening.
Starland has an FNB Business Account, which charges the following service fees:
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First National Bank charges per e-Wallet transaction within South Africa or to the
neighbouring countries. TABLE 2 shows the fees charged on e-Wallet transactions and
TABLE 3 shows Nomonde’s e-Wallet transactions.
Use TABLE 1 and TABLE 2 above to answer the questions that follow.
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3.1. Willie wants to ensure that he will have enough money for his trip to the 2019 Rugby World Cup and
therefore decided to keep a close eye on his finances. He obtained a bank statement to check all his
transactions and to see if he could pay less in bank charges.
The following transactions were made by Willie during August 2018 on his A7 Achievers account from
Commercial Bank:
Use the A achiever’s pricing guide and the information above to calculate Willie’s bank fees for August
2018 by completing ANSWER SHEET 1 below. (10)
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4.2 Buti has an Eliti account with one of the banks in South Africa.
TABLE 7 shows deposit fees applicable on his account in 2022.
TRANSACTION COSTS
Notes and coin deposit R80 + R2,25 per R 100 (for notes) + R5 per RI 00 (for coins) or
art thereof the amount de osited.
Adapted by examiner from information supplied by various banks — 2022
Use the information from TABLE 7 to answer the questions that follow.
4.2.1 Determine the minimum amount one will pay when making a deposit of notes and coins. (2)
4.2.2 Buti says he will be charged RI 80 when making a deposit of notes to the value of RI 500 (2)
and R500 in coins. Show by means of calculations whether his statement is VALID.
4.2.3 Calculate the VAT amount on goods sold. (You may use VAT = 15%) (3)
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Transport tariffs
Pre-test Mathematical Literacy P1 WC September 2021
1.4 Sarah uses the MyCiTi bus daily to drive to her bakery.
She decides to investigate the bus tariffs to see if she can save some money on travel
costs. She finds the table below.
1.4.1 Classify Susan’s daily bus fare as a fixed cost or a variable cost. (2)
1.4.2 Write down the fare that a person will be charged if they travel 10-20km during peak times.
(2)
1.4.3 How much will it cost to travel to work for a week (5days) if you work 34 km away. (4)
Nomsa plans to visit Los Angeles for educational conference. She will be travelling from her hotel
to the conference venue with an Uber taxi.
Option 1: UPFRONT fare = base fare (call-out fee) + (number of miles × per mile fare)
Option 2: POST-TRIP fare = (number of minutes × per minute fare) + (number of miles × per
mile fare)
The table below shows the different Uber taxis and their respective rates in Los Angels for both
UPFRONT and POST TRIP fare options. Including an example of a 10-mile using the Upfront fare
option.
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• Minimum fare: the lowest fare one would be charged per trip
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Parking tariffs
Question 5 Activity 13
The parking ticket of Ntsiki’s mother at Bram Fischer International airport showed the following
information:
ACSAparkingticket
Date of entry: 06January 2015
Time: 07:30
Date of exit: 10 January 2015
Time: 09:15
5.1 Determine the amount that Ntsiki’s mother must expect to pay for using the airport’s shaded
parking. (3)
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The parking ticket of Mr Sibiya at OR Tambo airport showed the following information:
3.1. Determine the amount that Mr Sibiya must expect to pay for using the airport’s shaded
parking.
3.2. Explain each of the following:
▪ The circumstances under which a person will feel disadvantaged if the parking ticket is
lost.
▪ The length of time for both the shaded and open parking, that a lost parking ticket would
be an advantage.
3.3. What measures are taken to discourage car owners, who must wait for the passengers, to
use the drop and go parking?
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Joseph intends to have some plumbing done at his house. He received the following plumbing information
from two companies.
TABLE 1 below shows the number of hours and total cost of plumbing for the two companies.
TABLE 1: NUMBER OF HOURS AND TOTAL COST FOR PLUMBING
Plumbing time (hours) 0 1 2 3 5 H
Handyman-SA cost (R) 0 450 850 G 2 050 3 250
Laws Plumbing cost (R) 0 550 1 100 1 650 2 750 4 400
NOTE: A call-out fee is a basic amount charged by plumbers in order to attend to the
location where the job must be done.
2.2.1. Write down the call-out fee value for Handyman-SA company. (2)
2.2.2. What is Laws Plumbing’s hourly rate? (2)
2.2.3. Write down the formula that can be used by Handyman-SA company to calculate the total cost of
plumbing, in the form:
Question 3 Activity 18
Use the graph below to answer the following questions.
3.1 The total cost for hiring a bus from Company P is calculated by using the following formula: (2)
Total cost (in rand) = number of passengers x 35
Use the graphs above and write down a formula for calculating the total cost (in rands) for
Company Q in the form:
Total cost (in rands) = …
3.2 Mr Palm has budgeted R900,00 for the total cost of the bus transport. Use the graphs above
or the formulas in QUESTION 4.1 to determine the following:
3.2.1 The maximum number of passengers that can be transported using Company Q (4)
3.2.2 The ratio of learners to teachers, if the maximum number of passengers is transported (4)
according to the conditions set out by Correctional Services regarding the number of
teachers
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The Department of Correctional Services became aware of a problem that Metro High School was
experiencing with violent incidents at the school. They invited the school to visit one of their prisons
on condition that one teacher had to accompany every group of 10 learners or fewer.
Mr Palm, the principal, must hi re a bus to take the learners and teachers to visit the prison.
Graphs representing the total cost of hiring buses from two different companies are drawn below.
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