Tariffs and charges
Dear Customer
We urge all South Africans to partner with us to keep the lights on and save 10% of their electricity usage. This will make it significantly easier to manage the power system during this challenging time, while also enabling us to do planned maintenance to ensure the reliability of our plant. For tips on how to trim 10% off your consumption, visit http://www.eskomidm.co.za/residential .
2013/14 Rates
Click here for the 2013/14 rates.
Click here for the 2013/14 Schedule of Standard Prices.
Click here for the 2013/14 tariff book.
Please be advised that there is an error on the Landrate Dx rates on the Schedule of Standard Prices, please refer to the rate table (above) for the correct rate. The schedule will be updated shortly.
Customer Brochures
Click here for the large power user brochure.
Click here for the small power user brochure.
Click here for the Homelight tariff brochure (prepayment).
Modeling tools to assess the impact of the price increase.
(To use the model save first and enable macros).
Click here for the Residential Impact tool.
ESKOM annual price increase 2013/14
1. NERSA MYPD3 decision and tariff implementation
On then 28 February 2013 MYPD3 decision, NERSA allowed revenues from standard tariffs sales of R135,226 billion from sales of 206,412 GWh. Based on the above structures, the tariff rates were recalculated including the price increase to achieve the approved revenue requirements and volumes as provided in the table below. It is to be noted that most rates were pegged to increase at around 8%, except for the energy rates and residential. Any average price variance from 8% is mainly attributable to load profile and volume variances notably for tariffs with demand and fixed charges.
The approved tariffs for 2013/14 incorporates the following based on the NERSA MYPD3 decision on allowed revenue and structures of the standard tariffs:
Residential Tariffs
a) Homelight 20A: change from a 4 block IBT structure to 2 blocks.
· Block 1 0-350 kWh and block 2 > 350 kWh.
b) Homelight 60A: change from a 4 block IBT structure to 2 blocks.
· Block 1 0-600 kWh and block 2 > 600 kWh.
c) Homepower tariffs: change from 4 block IBT structure to a tariff with a fixed network charge and energy recovered through 2 blocks.
· Block 1 0-600 kWh and block 2 > 600 kWh.
d) Revision of the Homepower Bulk structure.
Improved cost reflectivity
e) Transparent calculation of subsidies against costs.
f) Unbundling of the low voltage subsidy for the LPU tariffs
g) Unbundling of the affordability subsidy for the LPU Urban tariffs
h) Unbundling of the reliability service charge previously included in the energy charges. This impacts all tariffs except for residential and public lighting.
i) The submission of use-of-system charges for Distribution and Transmission connected generators and loads, on which the tariff charges are determined.
j) All energy rates, except for residential and public lighting recalculated determined on a purchase price 1:8 TOU ratio.
k) Embedding of the environmental levy in the energy rates for all tariffs.
2. Overview of the increases per tariff
The following table shows the average increase per tariff after including volumes changes, all the structural changes, the price increase and the contribution or receipt of subsidies.
Table 1: Summary of price increase per tariff category 2013/14
|
Eskom tariff increase categories |
Eskom average annual increase 1 April 2013 - 30 March 2014 |
Municipality increase 1 July 2013 – 30 June 2013 |
|
Munic Urban |
7.1% |
6.0% |
|
Munic Rural |
12.0% |
11.2% |
|
Munic Total |
7.3% |
6.1% |
|
Non-munic Urban |
9.6% |
|
|
Non-munic Rural |
9.3% |
|
|
Non-munic Homelight 20A |
-0.4% |
|
|
Non-munic Homelight 60A |
4.2% |
|
|
Non-munic Homepower |
7.3% |
|
|
Total |
8.4% |
|
If the impact is greater or lower than 8% then this is due to volume or the average load profile of particular tariffs.
2.1 Local authority tariff increase
With reference to Table 1 note the following;
· The local authority increases comprise 2 sets of rates. One set applicable for July 2012 to June 2013 at the 2012/13 rates and another set that is the proposed 2013/14 tariffs from 1 July 2013.
· Therefore the average price increases for Apr to June reflect a comparison of 2012/13 rates to the 2011/12 rates.
· The July to March average price comparison reflects the submitted rates for 2013/14 compares to 2012/13 for only the 9 months
· All municipalities will see for the 2013/14 Eskom financial year (1 April 2013 – 30 March 2014) an average increase of 7.3%. This compromises rates from 1 April 2013 - 30June 2013 at the current rates which includes the previous year’s 16% increase.
· The average increase applicable on 1 July to municipality tariffs will be 6.1% - from 1 July 2013 to 30 June 2014. This is the average increase that municipalities will see 1 July.
2.2 Non-local authority tariff increase
With reference to Table 1 note the following; the urban non-local authority tariffs see a slightly higher increase than the average increase due to the lower increases to the residential tariffs, now covered by the affordability subsidy.
2.3 Residential tariffs' impact
With reference to Table 1 note the following:
- Homelight 20A sees an overall average price reduction after the price increase. This was due to the average price including revenues from consumption of the higher block rates, while the price for block 1 was based on the average customer and not the average price of all customers on Homelight 20A.
- Homelight 60A sees a lower than average increase. This was due to the average price including revenues from consumption of the higher block rates, while the price for block 1 was based on the average customer and not the average price of all customers on Homelight 20A.
