Eskom has submitted updated tariff structures which will reflect cost drivers more accurately, protect all customers’ interests, avoid unfair cross-subsidies and enable fair recovery of costs by all users of the grid.

The power utility said in a statement on Monday that the new proposed structured tariffs were submitted to the National Energy Regulator of South Africa (Nersa) for their consideration for implementation from 01 April 2023.

“This is a revised version of the plan Eskom submitted to Nersa in 2020 and takes into account the latest developments in the electricity supply industry including the restructuring and unbundling of Eskom into three entities – Generation, Distribution and Transmission,” the statement reads.  

According to the statement, Eskom last revised its tariff in 2012 and existing tariffs need to be modernised to show the ever-changing electricity environment.

“For example, customers are installing their own power generators and are using the grid in different ways, and the wheeling of energy is also expanding. Fair and equitable revenue recovery from all customers for the services provided can only happen with tariffs and tariff structures that are modernised to reflect this changing environment,” said Eskom Group Executive for Distribution Monde Bala.

“When updating tariffs and implementing structural changes, it is not possible to have zero impact on all customers. Therefore, while the structural changes proposed will recover the revenue approved by Nersa in line with Nersa’s approved Multi-Year Price Determination (MYPD) methodology, individual customers may pay more or less, depending on the change and their consumption profile,” he added.

Nersa will make a decision regarding Eskom’s proposal after consulting with the public.

By editor