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 104 of 144<br />
<strong>Eskom</strong> has built momentum and continuity in its IDM programme. Change of<br />
governance could result in new challenges, negatively affecting delivery of<br />
savings at a time when it is most needed.<br />
<strong>Eskom</strong> has sound corporate governance structures, tried and tested in this<br />
environment.<br />
<strong>Eskom</strong> has economies of scale through optimised processes and product<br />
offerings, established over time.<br />
In order to meet IDM‟s goals, long-term strategic and commercial partnerships<br />
need to be established. Long-term certainty on IDM funding will provide the<br />
capability to ensure such commitments can be made.<br />
A strategic plan for targeting IDM markets needs to be developed that would<br />
gradually transition short-term requirements to a long-term, sustainable energy-<br />
efficiency environment. The market needs consistency, stability and clear<br />
strategies and guidelines to support the establishment of an external supplier<br />
support base and industry that practises energy efficiency.<br />
With IDM, <strong>Eskom</strong> has the ability in the short term to balance product offerings<br />
and prices to optimise overall cost, for example, by providing real-time pricing<br />
products that directly reduce expensive generation options, with direct and<br />
significant financial benefits to the industry.<br />
5.2.3 Demand market participation<br />
Demand Market <strong>Part</strong>icipation is a demand-response programme that started in <strong>Eskom</strong> in<br />
2004/05. It was aimed at key industrial customers where big loads (10MW–80MW) could be<br />
reduced for a specified period of time on request by the system operator. The programme<br />
consists of two products – “Instantaneous Demand Market <strong>Part</strong>icipation” and “Supplemental<br />
Demand Market <strong>Part</strong>icipation”.<br />
Instantaneous Demand Market <strong>Part</strong>icipation is a product where customers reduce load<br />
within 10 seconds of receiving a signal from a frequency relay, and have to maintain this<br />
reduction for a maximum of 10 minutes or until the frequency has been restored to an<br />
acceptable level. This product assists the system operator to arrest frequency decay on the<br />
network and allow the system to be restored to normal frequency levels.