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 125 of 144<br />
The year-on-year increases in the above figure compare the average price paid in the<br />
current year against the average price paid in the following year.<br />
The <strong>Eskom</strong> Urban (Industrial, Mining and Commercial) customers will see a higher increase<br />
than the average as a result of an increase in the cross-subsidies due to lower than average<br />
increases to the poor (low usage users).<br />
To protect the poor <strong>Eskom</strong> proposes for Homelight 20A (low usage) a single energy rate<br />
based on what the average Homelight 20A customer is paying currently on IBT. Thus the<br />
average customer will pay, before applying the price increase, approximately the same as<br />
what they are paying currently. This price is then increased by 9%. With the move from the<br />
IBT to the new single energy rate and the approach taken as described, the higher usage<br />
Homelight 20A customers will see a large reduction in their price. Consequently the <strong>Eskom</strong><br />
low usage (Homelight 20A) customers as a tariff category will see a slight reduction in price,<br />
but the average customer in this tariff category (the majority of the customers have an<br />
average consumption of only 123kWh/month) will experience a price increase of around 9%.<br />
Nersa also approves the tariff rates for each of the <strong>Eskom</strong> retail tariff categories. The<br />
average prices and increases for 2013/14 are provided per tariff in Figure 17 below.