Managing household expenses can be challenging, especially when it comes to those bills that you don’t really understand. We’re thinking specifically about your municipal bill. For many South Africans, municipal bills are a significant monthly expense, yet they’re often riddled with terms and charges that leave people scratching their heads. 

This guide will help you decode your municipal bill, understand what you’re paying for, and find ways to manage and reduce costs effectively. 

How To Read Your Bill 

There are some people who look at an itemised bill, filled with information littered across a few pages… and they just get it. As for the rest of us, it’s hard enough to find the total that you’re meant to pay. 

To help you out, let’s look at what’s included with your municipal bill: 

• Account number: Your unique identifier for municipal services, which you should always reference when making payments. 

• Billing period: The dates for which you’re being billed. 

• Previous balance and payments: This is the amount carried over from the previous month, detailing any payments made. 

• Current charges: The total for water, electricity, refuse removal, property rates, and other services for the billing period. 

• Total amount due: What you need to pay, including any overdue amounts or credits. 

Understanding Each Section 

What you might not know is that municipal bills vary between cities and towns in South Africa, but they generally include similar components.  

First, the water and sanitation charges: 

• Water usage: This is based on the amount of water you consume, measured in kilolitres (1 kilolitre = 1,000 litres). Most municipalities use a tiered pricing system, where the more you use, the higher your rate per kilolitre. 

• Sanitation: This charge is often linked to your water usage and covers the cost of disposing and treating wastewater. 

Secondly, there are the electricity charges: 

• Electricity usage: This is based on the amount of electricity used and is measured in kilowatt-hours (kWh). Like water, municipalities often use a tiered pricing system. 

• Service charges: These cover the cost of maintaining the electricity infrastructure, regardless of how much electricity you use. 

• Prepaid vs. postpaid: If you’re on a prepaid system, you’ll pay upfront for your electricity, while postpaid systems involve monthly billing based on usage. 

The third section regards refuse removal charges:  

• This covers the collection, transport, and disposal of household waste. Most of the time, this is a fixed monthly fee, so reducing your waste won’t lower this cost, but it’s still good for the environment to do so. 

Next up are your property rates:  

• This tax is levied on the property based on its value and the actual rate is determined by the municipal property valuation roll in combination with the rates tariff set by your municipality. 

Lastly are any other charges and levies, such as stormwater drainage levies, infrastructure development contributions, or emergency services fees.  

Tips To Reduce Your Bill 

You might assume that there’s no way to bring that bill down. Well, you’re wrong. It might take some effort, some follow up with your municipality, but it’s possible. Yes, it’s true that some charges are fixed, there are others that can be affected by your actions.  

Here are practical tips to help you save money. 

Reduce your water bill: 

• Install water-efficient showerheads and taps.  

• Fix leaks promptly. 

• Use rainwater tanks for gardening or washing cars. 

• Monitor your water meter for leaks. 

Reduce your electricity bill: 

• Use energy-efficient appliances and replace incandescent bulbs with LED lights.  

• Switch off unused devices and unplug appliances when not in use.  

• Take advantage of off-peak rates if available. 

• Consider installing solar panels or using solar water heaters. 

Reduce your refuse removal bill: 

• Recycle more waste. 

• Invest in a compost bucket so you can compost leftovers and food waste. 

• Separate recyclables to minimise landfill waste. 

Reduce your property rates: 

• Ensure your property valuation is accurate.  

• Dispute your property valuation if it’s too high. 

• Check your bill for any extra charges. 

Feeling informed?  

Your municipal bill doesn’t have to be a mystery, not when helpful guides like this exist. 

For more resources, free calculators, and expert advice to help you manage and save on these inescapable bills, explore the AA Inform website. Empower yourself with the tools and knowledge to make informed decisions and achieve financial wellness in 2025.