Eskom’s Critical Peak Pricing tariff - pilot phase 2

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:
- 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
- 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:
