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

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c/kWh IBT blocks Figure 18: Inclining block tariff structure Overview of Multi-Year Price Determination 2013/14–2017/18 (MYPD 3) Page 128 of 144 The tariff has been successful in lowering the cost of electricity for the poor, but there have been a number of unintended consequences. Any shortfalls to Eskom‟s approved revenues due to the IBT are recovered from other non-municipality tariffs, excluding rural non- municipality tariffs. As a result, the IBT shortfall (subsidy) is recovered only from urban non- municipality tariffs. The complex IBT structure also makes it difficult for customers to understand and for utilities to implement equitably. The more blocks there are, the more complicated it becomes. Most importantly, in the current IBT structure, rates and blocks are the same for all Eskom‟s residential customers. However, Eskom residential customers range from very wealthy residential customers to indigent customers in rural villages, with very different costs and usage patterns. The residential tariffs therefore need to be restructured to take into account costs and usage of different customers. Eskom has also provided input along the lines set out herein to NERSA regarding the IBT Consultation Paper issued for public comment. Eskom proposes simplifying and refining the residential tariffs while ensuring that the poor are protected and that residential customers will be able to choose from a suite of possible tariff options, as follows: IBT structure 0-50 kWh 51-350 kWh 351-600 kWh >600 kWh Consumption (kWh)
Overview of Multi-Year Price Determination 2013/14–2017/18 (MYPD 3) Page 129 of 144 Homelight 20A (typically low-consumption rural and small urban households who only use power for a few electrical appliances): a single energy rate lifeline tariff to cater for the poor. Homelight 60A (typically suburban higher-usage households who use more electrical appliances, including a geyser. This tariff can also apply to non- governmental organisations, government facilities, churches, schools, halls, clinics and old-age homes in urban areas): a revised IBT with two blocks; combining the first three blocks with the rate slightly higher than the lifeline tariff rate and increasing second block rates. Homepower suite of tariffs: Homepower 1, 2, 3 and 4 with fixed-charge tariff options for higher consumption supplies. Types of residential power supply Eskom‟s residential customers receive one of two sizes of electricity supply. Twenty-ampere (20A) single-phase supplies are typically used by low-consumption customers and can only power a few electrical appliances at the same time. Government housing projects typically use 20A supplies. Customers on a 20A supply usually qualify for a free connection and subsidised usage rates. Sixty-ampere (60A) three-phase supplies are typically used by higher-usage residential customers and cater for customers that have more electrical appliances, including a geyser. They include communal facilities such as churches, schools, halls, clinics and old-age homes in residential areas. Customers on a 60A supply are also subsidised, albeit to a lesser extent, but have to pay a connection fee based on the cost of connection. Greater than 60A supplies are used by high-consumption residential customers who have many electrical appliances. This tariff category is not subsidised and contributes to subsidies. Medium-to-high-usage residential customers in urban areas with a notified maximum demand of up to 100kVA can currently also choose to go onto a TOU tariff option that charges a higher tariff during peak hours and for winter but lower tariffs for off-peak periods
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Part 1 Revenue Application: Multi-Y
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Overview of Multi-Year Price Determ
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EXECUTIVE SUMMARY Introduction Over
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ESKOM PROFILE Overview of Multi-Yea
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Price path: Funding: Other: Overvie
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2 THE MYPD PROCESS Key points Overv
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Electricity Pricing Policy Overview
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Accomplishments during MYPD 2 Overv
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Base case application Overview of M
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Environmental levy Overview of Mult
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Cost of cover Overview of Multi-Yea
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Operating efficiencies target Overv
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3.5.2 Carbon tax Overview of Multi-
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Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

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