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

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Overview of Multi-Year Price Determination 2013/14–2017/18 (MYPD 3) Page 134 of 144 2013. However, on modelling the impact of this move, it was found that the increase would be much higher for a nine month period, although the annual increase would be the same. It was felt that it would not be appropriate to make this change at this time and the implementation dates for municipal and non-municipal customers would remain unchanged. 6.3 Summary of proposed structural changes Although only a number of the more important proposed tariff structural changes were highlighted above, a summary of all the proposed changes are provided in Table 54. The details of each one of these changes are provided in Part 2 of the document.
Overview of Multi-Year Price Determination 2013/14–2017/18 (MYPD 3) Table 54: Summary of proposed structural changes to tariffs Proposed change Driver Timing Tariff restructuring Update tariffs with new cost-to-serve study: ● ● Apply differentiated price increase to different rate components - tariff restructuring ● Explicit electrification and rural subsidies ● The reliability service charge unbundled ● Cost-reflectivity use-of-system charges Unbundle subsidies into a separate affordability (IBT) and network related subsidy ● Nersa requirement for use-of-system charges - Could affect customers having to pay IBT subsidies Review of TOU Structure ● Cost reflectivity and pricing signal - Will affect customers depending on load profile April/July 2013 Page 135 of 144 Start April/July 2013 Residential tariffs ● Greater flexibility, simplicity and compliance with the DoE EPP and the Electricity Regulation Act April/July 2013 Low power factor charge - phase 1 introduction of reactive energy charge in all TOU time periods instead of only winter peak and off-peak periods Include the environmental levy in energy rates - but still provide information on the value Use-of-system charges - generators and loads - Use-of-system to be shown costreflective and low-voltage subsidy shown explicitly Reducing the low-voltage subsidies for urban tariffs Cost reflectivity and transparency - Will affect all customers ● Pricing signal and improve system and network performance - Will negative impact customers with low power factor ● Simplicity - Will affect low-voltage customers due to losses being charged cost reflectively ● Transparency; flexibility and business and customer need - Should on its own have no impact on customers ● Cost-reflectivity and equity - Reduces the cross subsidy paid by higher-voltage customers - Will negatively affect low-voltage customers April/July 2013 April/July 2013 April/July 2013 April/July 2012
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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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Table 17: IPP projects (costs and e
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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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Table 34: Eskom’s funding over th
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Weaknesses: Overview of Multi-Year
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Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

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