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ESKOM SUBMISSION OF THE  PROPOSED NEW TARIFF OPTION, CALLED CRITICAL PEAK DAY (CPD) - FOR VOLUNTARY IMPLEMENTATION TO ESKOM'S QUALIFYING LARGE POWER CUSTOMERS
 
  
On the 19 October 2016, the National Energy Regulator of South Africa (NERSA) published the Eskom submission for approval the introduction of Eskom’s proposed new tariff option, called “Critical Peak Day” (CPD) – for voluntary implementation to Eskom’s qualifying large power customers.
Sustainable solutions that assist in creating “breathing space” in Eskom’s power system are required when the power system is constrained or when the System Operator deems it necessary to balance supply and demand to protect the power system.
Critical Peak Day pricing is a tariff option that has been internationally proven to reduce load on the specific days that load reduction is required.  This is achieved by increasing the electricity price on these system-constrained days (critical peak days) and lowering the prices on non-constrained or normal days of the year.  These system-constrained days are typically days on which the utility gives customers notification of being critical peak days.
Critical Peak Day pricing is one of the demand response options that will be added to Eskom’s demand response solutions used to balance supply and demand.
The critical peak days will be predetermined by the System Operator, with a minimum of a day-ahead notification to customers who choose to be on the Critical Peak Day tariff option.  The design of the Critical Peak Day tariff option is based on 20 critical peak days per annum per customer.
The Critical Peak Day tariff option provides customers with the flexibility to partner with Eskom in a win-win situation for both.  If customers choose to reduce their electricity consumption on the days when load reduction is required, the customers can save on the electricity bill.  When customers reduce their consumption on the days when load reduction is required, this creates breathing space to assist the System Operator to better manage the power system.
 NERSA has provided the following timelines in terms of the process to be followed:
  
TIMELINES
Action
 
Timeframe
 
1. Publish Eskom’s application on NERSA website for stakeholder comments
 
19 October 2016
2. Closing date for stakeholder comments
 
18 November 2016
3. Public Hearing on Eskom’s Critical Peak Day application
 
2 December 2016
4. Energy Regulator decision on Eskom’s Critical Peak Day application
 
January 2017
 
 
Click here for the Eskom submission to Nersa.