Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
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Eskom has built momentum and continuity in its IDM programme. Change of
governance could result in new challenges, negatively affecting delivery of
savings at a time when it is most needed.
Eskom has sound corporate governance structures, tried and tested in this
environment.
Eskom has economies of scale through optimised processes and product
offerings, established over time.
In order to meet IDM‟s goals, long-term strategic and commercial partnerships
need to be established. Long-term certainty on IDM funding will provide the
capability to ensure such commitments can be made.
A strategic plan for targeting IDM markets needs to be developed that would
gradually transition short-term requirements to a long-term, sustainable energy-
efficiency environment. The market needs consistency, stability and clear
strategies and guidelines to support the establishment of an external supplier
support base and industry that practises energy efficiency.
With IDM, Eskom has the ability in the short term to balance product offerings
and prices to optimise overall cost, for example, by providing real-time pricing
products that directly reduce expensive generation options, with direct and
significant financial benefits to the industry.
5.2.3 Demand market participation
Demand Market Participation is a demand-response programme that started in Eskom in
2004/05. It was aimed at key industrial customers where big loads (10MW–80MW) could be
reduced for a specified period of time on request by the system operator. The programme
consists of two products – “Instantaneous Demand Market Participation” and “Supplemental
Demand Market Participation”.
Instantaneous Demand Market Participation is a product where customers reduce load
within 10 seconds of receiving a signal from a frequency relay, and have to maintain this
reduction for a maximum of 10 minutes or until the frequency has been restored to an
acceptable level. This product assists the system operator to arrest frequency decay on the
network and allow the system to be restored to normal frequency levels.