Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
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Overview of <strong>Multi</strong>-<strong>Year</strong> <strong>Price</strong> <strong>Determination</strong><br />
2013/14–2017/18 (MYPD 3)<br />
Page 102 of 144<br />
under operating costs. <strong>Eskom</strong> is, and will continue to be, the main administrator and<br />
implementer of Nersa-funded demand-management initiatives in South Africa.<br />
Historically, the energy-efficiency and demand-side management programme, which now<br />
forms part of IDM, largely funded its demand and energy-savings initiatives through tariff<br />
applications approved by Nersa. The most recent approved application was MYPD 2, which<br />
was applicable from 1 April 2010 to 31 March 2013. The need for continuity beyond this<br />
period to realise further demand and energy savings has been identified. This document<br />
requests additional funding through the tariff to accommodate this during MYPD 3.<br />
<strong>Eskom</strong> will continue in its current role as main administrator and implementer of the Nersa-<br />
funded demand-management programme in South Africa. IDM has been a focus area in<br />
“keeping the lights on” – a key <strong>Eskom</strong> strategic initiative over the past few years. Projections<br />
of the supply-demand situation indicate an energy shortfall, particularly between 2012 and<br />
2014. IDM plays a significant part in mitigating this risk. The IRP 2010 also considers the<br />
effects of IDM on the country‟s future capacity needs.<br />
IDM costs constitute peak demand savings, annualised energy savings, overhead costs and<br />
other costs. ECS costs do not form part of the IDM plan and are reflected separately. Overall<br />
IDM costs, excluding ECS costs, total approximately R13.9 billion for MYPD 3.<br />
Table 43: IDM programmes and cost<br />
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 MYPD 3<br />
Programmes - peak demand savings (MW) 344 343 1 286 458 358 221 232 461<br />
Programmes - annualised energy savings (GWh) 1 274 1 334 3 505 2 245 1,361 826 1 016 2 283<br />
Programmes - costs (Rm) 576 1 593 7 485 2 660 2,419 1 581 1 652 3 033 11 345<br />
Operating costs (Rm) 246 485 309 463 480 484 518 580 2 525<br />
Depreciation (Rm) 1 4 1 1 1 1 1 1 5<br />
Total costs (Rm) 823 2 082 7 795 3 124 2 900 2 066 2 171 3 614 13 875<br />
Other (Rm) - 44 - 140 - 11 - 183 - 191 - 204 - 205 - 2 - 785<br />
Net costs (Rm) 779 1 942 7 784 2 941 2 709 1 862 1 966 3 612 13 090
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