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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The year-on-year increases in the above figure compare the average price paid in the
current year against the average price paid in the following year.
The Eskom Urban (Industrial, Mining and Commercial) customers will see a higher increase
than the average as a result of an increase in the cross-subsidies due to lower than average
increases to the poor (low usage users).
To protect the poor Eskom proposes for Homelight 20A (low usage) a single energy rate
based on what the average Homelight 20A customer is paying currently on IBT. Thus the
average customer will pay, before applying the price increase, approximately the same as
what they are paying currently. This price is then increased by 9%. With the move from the
IBT to the new single energy rate and the approach taken as described, the higher usage
Homelight 20A customers will see a large reduction in their price. Consequently the Eskom
low usage (Homelight 20A) customers as a tariff category will see a slight reduction in price,
but the average customer in this tariff category (the majority of the customers have an
average consumption of only 123kWh/month) will experience a price increase of around 9%.
Nersa also approves the tariff rates for each of the Eskom retail tariff categories. The
average prices and increases for 2013/14 are provided per tariff in Figure 17 below.