Tariffs and charges

Eskom proposed 2021 tariff restructuring plan

Eskom has submitted its proposed retail tariff plan to NERSA for their decision. 

The proposed tariff restructuring plan is forward-looking and provides signals for further optimal use of the South African electricity system. The proposals are motivated by a recently updated cost-to-serve study. 

The following are the key objectives of this tariff submission:
  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
    1. Retail tariff plan – complete document
    2. Presentation
    3. Fact Sheet

Eskom annual price increase 2021/22

On 5 March 2021, the National Energy Regulator of South Africa (Nersa) approved Eskom’s allowable revenue from standard tariff customers to be 15.06% which will be implemented on 1 April 2021 for Eskom direct customers and 17.80% for municipalities which will be implemented on 1 July 2021.

Click here for Nersa’s approval letter.

Click here for the tariff book.- Please note that the details contained in the Tariff book are purely to inform you of Eskom’s tariffs and charges.Under no circumstances should the Tariff book be regarded as an amendment of any agreements with Eskom. No representation or warranty is given regarding the accuracy of any information contained in the Tariff book. Eskom accordingly disclaims any and all liability resulting from the use of or reliance on the information contained in the Tariff book.

Click here for the rates in excel format.

Click here for the Schedule of Standard Prices- Please note that the Schedule of Standard Prices is the official document containing Eskom’s tariffs.

Schedule of Standard Fees
Click here for the Schedule of Standard Fees
Click here for  the small power user (SPU) tariff comparison tool.  
Click here for the large power user (LPU) tariff comparison tool. 
Click here for the residential token purchase tool (for pre-paid supplies). 
Click here for the notified maximum demand (NMD) tool.  
Click here for the NMD rules  
Click here for the price increase Connect.