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

Simplify tariff structures
Modify some price signals to customers.
Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
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The details of the proposed changes include indicative rates and tariff structures based on
the costs per licensee. The final tariffs, based on the Nersa determination of the revenue
application and the tariffs structures, will be submitted to Nersa to be approved annually.
6.2.1 Residential tariff structures – including protection of the poor
In 2009, Eskom had two residential tariff structures: the Homepower suite of tariffs aimed at
customers with higher consumption comprised a fixed charge plus a single energy rate; and
the Homelight suite of tariffs aimed at customers with lower consumption comprised a single
energy rate.
In 2010, Nersa removed these structures when they introduced the IBT. The IBT was
implemented to cushion low-income households that use very little electricity. The structure,
which also provides an incentive for all households to use electricity efficiently, divides
consumption into four blocks. The unit tariff per kWh is stepped up as consumption
increases.