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

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