Eskom’s Critical Peak Pricing tariff - pilot phase 2

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Eskom is introducing a new Critical Peak Pricing pilot tariff to incentivise customers to save money and electricity by reducing their electricity usage during system-constrained times.

The new Critical Peak Pricing (CPP) pilot tariff aims to partner with qualifying large customers by providing an incentive to save and reduce their electricity usage during a limited number of system critical hours (to avoid the higher critical prices), while having lower than standard tariff prices to encourage electricity consumption and growth for the rest of the year when the system is not constrained.

The Critical Peak Pricing pilot tariff empowers customers to become active participants in demand response by providing mutual benefits for both the customer and Eskom.

This pilot tariff forms part of Eskom’s commitment to roll out products in support of creating economic efficiency by reducing overall costs and encouraging the more effective and efficient use of electricity throughout the year.

Critical Peak Pricing is a tariff that has been used internationally and has proven to provide system demand reduction when it is most needed.

Eskom plans a “win/win” partnership with its qualifying large customers to test a ‘”critical peak pricing” pilot tariff.

Eskom will limit the critical peak hours to only 400 hours per year (which is less than 5% of the year), so that the higher prices to the customer can also be limited. The prices for the rest of the year will be lowered (i.e. for more than 95% of the year).

Two tariff options be will offered for the pilot. Customers who participate in this pilot, can choose either one of these tariff options.

The two pilot options are:

  1.  16 hours per day from 06:00 to 22:00 for 25 critical peak days, up to a maximum of 400 hours per year,

or

  1.  8 hours per day from 06:00 to 14:00 for 50 critical peak days, up to a maximum of 400 hours per year.

The below graph gives a more detailed breakdown of how the incentivised Critical Peak Pricing pilot tariff would work:

Eskom will notify pilot participants 24 hours before the critical hours start. This will be an option that will be used at the discretion of the system operator.

This pilot tariff will only be offered to existing Eskom direct supplied (non-municipal) large power customers on the Megaflex, Megaflex Gen, Miniflex, Ruraflex and Ruraflex Gen tariffs who have half-hourly time-of-use metering.

Customers will have the choice to apply for the pilot tariff, therefore participation in the pilot will not be mandatory.

If customers should choose to participate in the proposed pilot, they will have to be on the pilot tariff for 12 months (as is the existing policy for any standard tariff conversion).

Customers who apply for the pilot will be evaluated by Eskom before being signed up.

Interested customers are welcome to send an e-mail to the project management office at [email protected].

Customers are invited to read and download the pilot application and rules by clicking here.

Customers who would like to participate in this pilot will have to complete the pilot application and rules form and send the signed copy to the project management office at [email protected].

Please click on the following for more information on Eskom’s Critical Peak Pricing pilot tariff:

1.Fact sheet – Please note that this Fact sheet reflects 2021/2022 rates.  See below for the 2022/2023 rates.

2.Customer presentation– Please note this presentation reflects 2021/2022 rates. See below for the 2022/2023 rates.

3.Megaflex, Megaflex Gen, Miniflex, Ruraflex and Ruraflex Gen Critical Peak Pricing pilot tariff energy rates