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
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: