1.Updating tariffs with the latest (2019/20) cost-to-serve study, which is a cost allocation and segmentation exercise.
2.Optimising customer response and use of the system by revising pricing signals to reflect the current system and changing the time-of-use (TOU) structure.
3.Reducing volume risk and increasing fixed charges to further reflect fixed costs
4.Simplifying tariff options, removing the inclining block tariff (IBT), and rationalising the number of municipal tariffs.
5.Providing for more economic recovery of cost-reflective tariffs (structurally), reducing the burden on higher voltages, and reducing low-voltage subsidies for urban low power user tariffs.
6.Modernising tariff structures in light of evolving customer needs and technology with residential TOU tariffs.
For the achievement of the key objectives, the following major structural changes are proposed:
• Revising charges using the updated forecast volumes,
cost split, and cost allocation methods.
• Energy rates to reflect updated wholesale energy costs;
changes to the TOU ratios (peak, standard, and off-peak)
and TOU periods (swapping the peak period and introducing
a standard period on Sundays) to be aligned with wholesale rates.
• Network charges to reflect updated Transmission and Distribution network costs.
• Increasing the Distribution fixed-charge network charges component, with a commensurate reduction of the variable charge for all tariffs with network charges.
• Rationalising the municipal tariffs into only three tariff categories: a large power user (LPU) version called Municflex, a small power user (SPU) version called Municrate, and a public lighting tariff for non-metered lighting supplies
• Increasing the low-voltage charges for urban LPU, thereby reducing the low-voltage subsidy.
• Basing service charges on the number of points of delivery (PODs) and not per account.
• Removing the inclining block rate tariff structure for Homepower and Homelight.
• Introducing a residential TOU tariff plus a new net billing offset rate for those with small-scale embedded generation will be evaluating the plan and make the timing for public consultation known. You are, however, welcome to submit questions to Eskom on the following email address:
electricitypricing@eskom.co.za.
Please click on the following for more information on the plan
3. Fact Sheet - will be published as soon as it becomes available