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What are the fixed monthly costs for a prepaid electricity system and how much would a household pay for 286 kWh on a post-paid system excluding VAT?

Economics

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Answer

2.1

R0.00\text{R0.00}

Step-by-step solution

5 steps

Here are the solutions to the questions based on the visible information:

Part 2.1· 2 steps

Determine the fixed monthly cost For the pre-paid system.

  1. Identify the nature of a prepaid electricity system.

    A prepaid electricity system typically requires users to purchase electricity units in advance. Unlike post-paid systems, it generally does not include a fixed monthly service charge.

  2. State the fixed monthly cost.

    Based on the common model for prepaid electricity and the absence of any specified fixed cost in the provided image, the fixed monthly cost for the prepaid system is considered to be R0.00.

    The fixed monthly cost for the prepaid system is R0.00\boxed{\text{R0.00}}.

Part 2.2· 3 steps

If a household uses 286 kWh of electricity on the post-paid system, how much would they pay For their electricity consumption, EXCLUDING VAT?

To solve this, we will use the fixed monthly cost and the electricity tariff for the post-paid system.

  • From the image, we can infer a fixed monthly cost of R71 (visible next to "2.3 A R71").
  • From the list of tariffs under "(c/kWh)" on the left, we will use R1.60/kWh as the most plausible electricity tariff for the post-paid system (interpreting "1,60" as R1.60/kWh, as typical electricity tariffs are in Rands per kWh, not cents per kWh, and R1.60 is a realistic rate).

  1. Identify the fixed monthly cost for the post-paid system.

    The fixed monthly cost for the post-paid system is R71.00.

  2. Identify the variable electricity tariff.

    The electricity tariff is R1.60 per kWh.

  3. Calculate the cost of electricity consumption.

    The cost for

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