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

more detail):
Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
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Homepower is used for higher-consumption residential customers – based on
supply size.
Homelight is used for prepaid customers with smaller supply sizes – 20A or 60A.
Local authority bulk supplies – municipalities are supplied on all of Eskom‟s tariffs,
depending on the size, location and what the electricity is being used for.
Apart from the impact of the tariff restructuring, the timing of the implementation of the
increases on tariffs also impacts the increase to customers. Eskom needs to take into
account the fact that increases to the municipalities are delayed by three months and the
shortfall needs to be recovered over a nine month period. Although the annual average
increase for the year remains unaffected, the timing difference results in municipalities to
receive a higher than the average tariff increase from 1 July.
Figure 16 provides indicative figures for the different tariff categories for the five year period,
but the details of the impact on each tariff and the indicative rates submitted will only be for
year 1 of the MYPD 3 and is outlined in Part 2: Proposal to restructure tariffs. Thereafter a
tariff application will be made on annual basis to Nersa. Eskom is required to submit an
annual tariff adjustments application for approval by Nersa as their decision depends on the
actual revenues for the previous year and applicable regulatory rules.
Figure 16: Indicative Year-on-Year (Y-O-Y) tariff increases per tariff category