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# ### Answers to Water Tariff Questions #### 2.1.1 Explaining the concept of a tariff: A tariff in this context refers to a set price schedule for services provided by a utility company, such as water

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Question: QUESTION 2 2.1 In the first month of living on her own, Susan used 33 kℓ of water. TABLE 1 shows the residential water tariffs including VAT. TABEL 1: NEW RESIDENTIAL AND COMMERCIAL WATER TARIFFS BLOCK TARIFF SUMMARY (IN KILOLITRES) TARIFF (RAND PER KILOLITRE) Block 1 0–6 kℓ R6,65 Block 2 More than 6–20 kℓ R28,24 Block 3 More than 20–40 kℓ R31,79 Block 4 More than 40–60 kℓ R33,62 Block 5 More than 60 kℓ R35,92 [Adapted from www.kimberley.org.za Use the information above to answer the questions that follow. 2.1.1 Explain the concept tariff. (2) 2.1.2 Write down the tariff in block 5. (2) 2.1.3 Calculate the total amount that Suzan paid for 33 kℓ of water. (4) 2.2 In December 2019, Amoti used 690 kWh of energy. TABLE 2 below shows the electricity tariffs for flats / houses in the local municipality where Amoti lives. TABLE 2: ELECTRICITY TARIFFS FOR FLATS / HOUSES Residential Prepaid Proposed c/kWh [VAT incl] Block 1 (≤ 550 kWh) 124,49c Block 2 (> 550 kWh) 141,43c Service Charge (R/month ) R147,74 [Adapted from electricity-tariffs 2018–2019-Johannesburg] Use the information above to answer the questions that follow. 2.2.1 Determine the monthly service charge for a flat of house excluding VAT. (2) 2.2.2 Calculate the amount that Amoti paid for 690 kWh in December 2019. (4)

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### 2.1 #### 2.1.1 Explain the concept of a tariff. (2) A tariff is a price or fee charged for a service rendered or goods provided, often established by a governing authority or organization. In the context of utilities such as water, it represents the rate charged to consumers for the consumption of water, as measured per kiloliter (kℓ). #### 2.1.2 Write down the tariff in block 5. (2) The tariff in Block 5 (for consumption of more than 60 kℓ) is R35,92 per kiloliter. #### 2.1.3 Calculate the total amount that Susan paid for 33 kℓ of water. (4) To calculate the total amount Susan paid, we need to break down her usage according to the blocks: - For Block 1 (0–6 kℓ): 6 kℓ × R6.65 = R39.90 - For Block 2 (more than 6–20 kℓ): (20 - 6) kℓ = 14 kℓ × R28.24 = R395.36 - For Block 3 (more than 20–33 kℓ): (33 - 20) kℓ = 13 kℓ × R31.79 = R413.27 Total amount = R39.90 + R395.36 + R413.27 = R848.53 So, Susan paid a total of R848.53 for 33 kℓ of water. ### 2.2 #### 2.2.1 Determine the monthly service charge for a flat or house excluding VAT. (2) The given monthly service charge including VAT is R147.74. Assuming VAT is 15%, we need to exclude VAT from the total to find the amount before VAT is added. Service Charge (excluding VAT) = Total Charge / (1 + VAT Rate) = R147.74 / 1.15 = R128.47 (rounded to 2 decimal places) So, the monthly service charge excluding VAT is R128.47. #### 2.2.2 Calculate the amount that Amoti paid for 690 kWh in December 2019. (4) Amoti’s electricity consumption is 690 kWh. We need to apply the applicable tariffs in the respective blocks: - For Block 1 (≤ 550 kWh): 550 kWh × 124.49c (or R1.2449) 550 kWh × R1.2449 = R684.695 (rounded to three decimal places) - For Block 2 (> 550 kWh): (690 - 550) kWh = 140 kWh × 141.43c (or R1.4143) 140 kWh × R1.4143 = R198.002 (rounded to three decimal places) Total cost of electricity = R684.695 + R198.002 = R882.697 So, Amoti paid approximately R882.70 for 690 kWh of energy in December 2019.

May 21, 2024, 6:51 a.m.

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