Eskom tariff book 2011 12

Please refer to the 201819 tariff book for local authority tariffs 1 april 2019 to 30 june. Johannesburg eskoms application for tariff increases had been ready for submission when government asked it to look at additional factors, the. May 20, 2015 municipal electricity tariffs generally increase on july 1 each year, and eskom has submitted an application to the national energy regulator of south africa for a further 12. This is a 15% tariff increase per year for the next three years.

Sc0207201819 eskom schedule of standard prices 201819 rev00 1 april 2018 full version 15% vat page 2 of 46 duos charge generators means the duos charges payable by generators. For tariff impact calculations and for more information on eskoms schedule of. The homeflex tariff rates for 201112 are as follows. Disclaimer the details contained in the tariff book is purely to inform you of eskom s tariffs and charges. Eskom accordingly disclaims any and all liability resulting from the use of or reliance on the information contained in the tariff book. On 1 march 2011, however, nersa announced the tariff determination for 2011 12 which was as per the original mypd2 decision and excluded the eskom proposal. Eskom eskom performance for the yearended 31 march 2017. The details contained in the tariff book are purely to inform you of eskoms. How far weve come a history of electricity tariffs.

Will social grants go up by 34 from the 1st of april 2009. They used sectoral electricity consumption data supplied by eskom, three electricity tariff tiers based on the eskom tariff book to differentiate among the sectors, and sectoral output. The 20102011 electricity tariff adjustment for nala local. Briefing by eskom on its tariff increase for 201718 and amended pricing structure for municipalities with effect from 1 july 2017. This is on top of the confirmation that load shedding has been confirmed for today. Eskom confirms that the price increase to be implemented on 1 april 2015 to eskom direct customers is still 12. Eskom had applied for revenue of r99bn in 2010 11, r146bn in 2011 12 and r216bn in 2012. If that price rise keeps going, our example household will be paying just under r2000 each and every month by 2018. Eskom asks for reduced tariff increase businesstech. She asked whether the r225 billion gap included the r190 billion gap from the previous financial year.

This increase will be effective from the 1st july 2017. The lower increases and expected revenue are a big wakeup call for the utility. Schedule 4 of the constitution makes electricity reticulation a municipal. Click to edit master title style amazon web services. The increase has already taken effect and comes as nersa concluded its public hearings in relation to eskoms.

The producer is the biggest recipient of state guarantees at a time when south africas finances are buckling under lower tax revenue and rising debt. Current tariffs electricity charges with effect from 1st. In 2015 and 2017 we published infographics showing eskom annual tariff increases since 1988 compared to inflation following nersas approval of a. Eskom applies for 15% tariff increase businesslive. Eskom heads to court to demand higher tariffs techcentral. Eskom will have to reconsider its financial options after the national energy regulator of south africa nersa rejected the utilitys application for a. Eskom challenges latest power tariff decision in court. Jun 12, 2018 on december 15, 2017, the energy regulator approved a 5. Renewable energy incentives across varying levels of. Under no circumstances should the tariff book be regarded as an amendment of any agreements with eskom. Giant energy provider, eskom made an urgent application to nersa with the thrust of a tariff hike. Indicative municipal tariff guideline, benchmarks and.

It was also necessary to recognise the impact of the 78 percent tariff increase between 2008 and 2011 on consumers and the economy. Strategic direction and tariff design principles for eskom s tariffs eskom 2017 5 of 47 1. Prior to 2007 eskom managed to achieve significant profits. It bases the higher increase proposed for its municipal bulk customers on the prescribed methodology and, specifically, that the increase would only take effect three months into the tariff period, on 1 july 2018. Eskom recognises that there is room for improvement, and has adapted the structure and content of this report to improve the interconnectedness of the information presented and reflect current reporting trends. Southern cape karoo electricity forum hendrik barnard.

Department of energy renewable energy bidders conference. Use data analytics to assess information from smart meters for effective tariff. In decision and reasons for decision, a 118page document released this week, nersa outlines why it cut the 19. To date, the department of energy has implemented irp 2010 by issuing ministerial determinations in accordance with section 34 of the era. Electricity tariff suitable for high load factor urban customers with an nmd. As nersa prepares for public hearings on eskoms 45% multiyear tariff increase request on top of an already approved 12 % increase, energy expert ted blom has called on eskom to scrap its application as the still captured and corrupt utility should not be granted any increases until a full forensic audit has been completed. High demand tariff aplicable to winter months june, july and august. It was followed by an interim integrated report in november 2012. Eskom applies to nersa to approve the revenue it intends to collect. The allowed revenue of r205 214 million for the 201718 financial. Environmental levy in the recent budget speech, the finance minister announced. Eskom pleads for tariff hikes and state bailout to avert disaster.

Essentially the regulator determines the tariffs eskom can charge consumers. The roadmap for eskom in a reformed electricity supply industry is compiled with the latest available information from departmental and other resources. The 16% increase is the percentage difference between the eskom average price for the financial year 2011 12 compared to 2012 as projected in the mypd 2 decision. The less it sells, the higher the tariff it wants, and the less it sells the utility death spiral.

As consumption increases, the tariff rates become more expensive. In the first year of the multi year price determination3 2014, eskom increased the tariff by 8% as approved which they also applied in the following period of 201415. Eskom asset restructuring a study into the impact on the. Domestic electricity prices of six metros and eskom compared. Some of this information is unaudited or subject to revision. The utility has also taken on board a suggestion that the horizon for transitioning towards costreflective tariffs be extended. Ppt eskom tariff hike earthlife africa jhb powerpoint. These duos charges for generators comprise the network capacity charge based on maximum export capacity, the losses charge, the ancillary service charge, the service charge and the administration charge. Jun 05, 2017 eskom acknowledges that a 20% tariff increase could have a 0,76% impact on the consumer price index. Eskom tariff hike earthlife africa jhb about 12 million south africans live on social grants i. Makwana said that despite the revised lower increase, eskom would still have a shortfall of r14. Dec 15, 2017 south africas energy regulator nersa said on friday it had granted power utility eskom a 5.

Eskom asset restructuring a study into the impact on the longrun electricity tariff path date. Eskom cannot operate with the current tariff level. This is the third edition of eskom s strategic pricing direction. Sep 14, 2017 nersa kicks off consultation for huge eskom tariff increase. While most south africans have strongly opposed eskoms tariff increase of just under 14% that kicked in. Instead, eskom has struggled and strained and managed to squeeze next years price rise to 12. Oct 16, 2017 johannesburg the energy intensive users group eiug on friday said eskoms application for a 19. Eskoms schedule of standard prices and the details of. In the event that the ff%ffcf please note, for all tariffs where there is an maximum demand charge as part of the tariff. Eskom has asked the national energy regulator of sa nersa for a 15% tariff increase for the next three years, beginning 20192020, the utility announced on friday. This revenue results in an annual average price increase of 5. Disclaimer the details contained in the tariff book is purely to inform you of eskoms tariffs and charges.

Back to the drawing board for eskoms proposed tariff hike. In 2008, eskom wanted to submit a threeyear application that would cover 200910, 201011 and 20112012. Eskom has asked the energy regulator for a 15% annual tariff increase for three consecutive years. Eskoms 2011 12 integrated report was well received. Rod crompton, adjunct professor african energy leadership centre wits business school, university of the witwatersrand.

Jun 23, 2015 eskom has asked at public hearings that it be allowed to raise prices to, in part, fuel gas turbines. If this is granted, it is expected to lead to a tariff hike of least 16%, the city of cape town told the panel on monday. Mertens says it is a feather in the chambers cap that it succeeded in limiting the eskom tariff increase to 2. Eskoms 201112 tariff rates including impact and tariff comparison modelling tools can. As the customer purchases more electricity during the month, the electricity bought will eventually fall in block two which is a bit more expensive. Eskom asset restructuring a study into the impact on the long. This means it is a tariff structure with tariff charges that change based on the amount of consumption. This meant the regulator approved an allowable revenue of r190. Eskom presentation select committee on communications and public enterprises 14 june 2017. National ports authority proposed tariff methodology. Eskom increased its prices by 12,69% on 1 april 2015, while municipalities increase their prices on 1 july each year. To create a cost recovery model for nala to inteact with nersa staff and submit the final proposal to the municipality and nersa for final approval. Jun 15, 2018 poor south africans already have to pay for the ancs corruption at eskom, they cannot be expected to cough up more to pay for these salary and tariff increases at eskom.

Google scholar department of energy, republic of south africa 2011 renewable energy ipp procurement programme. Generally risk profiles differ from one business to the other. The da notes with concern the decision by the national energy regulator of south africa nersa to grant eskoms request to recover more than r32 billion by increasing electricity tariffs, essentially making electricity more expensive for south africans. In addition, eskom has since applied to nersa for a further 12,61% increase in its 201516 prices i. Public hearings on eskoms demand for a 15% electricity tariff increase over the next three years will start in cape town next week and. They used sectoral electricity consumption data supplied by eskom, three electricity tariff tiers based on the eskom tariff book to differentiate among the sectors, and sectoral output data based on national statistics for their estimation. In 2008 when eskom was about to submit the mypd, they assessed the funding that was required.

For the 201920 year eskom wants r219bn, for 202021 the power utility wants r252bn and in 202122 eskom wants r291bn. Book a seat at the 2019 business day tv sme summit. Charges that may be applicable to tariffs continued. On 6 may 2011, the department of energy released the integrated resource plan 20102030 irp 2010 in respect of sas forecast energy demand for a 20year period from 2010 to 2030. The city power 60 a and 80 a credit meter tariffs offer significantly lower pricing than the corresponding eskom 80 a credit tariff for middle and higher consumption customers using above 1 100 kwh per month. Strategic direction and tariff design principles for s tariffs. The respective average percentage increases are shown on the following page. The head of information and marketing for fnb agribusiness said on thursday that the eskom tariff increases announced earlier in the day would impact negatively on the agricultural economy. Deadline looms for written submissions on eskom tariff. Eskom misses deadline for tariff appeal biznis africa.

The governments support for eskom comes amid a groundswell of discontent over the proposal, and a sharp attack. He says eskom is taking its cue from president jacob zumas state of the national address, in which he outlined the need to moderate the rate of tariff increases. The national energy regulator of south africa nersa has approved a 2. Apr 01, 2015 this means eskom tariffs will increase by 12. Eskom challenges latest power tariff decision in court alexander winning 20191011 14. Eskoms sales have been declining by about 1% per annum.

The people of south africa, especially the poor, can no longer depend on the anc to better their lives. The details contained in the tariff book are purely to inform you of eskom s tariffs and charges. Incline block tariffs divide the electricity price into several steps or blocks. Between 199596 and 200506 eskoms net profit margin averaged 12. Limpopo noted that in the year 2011 12 eskom had identified a financial gap of about r190 billion over seven years, but the 8% tariff increase by nersa created a r225 billion gap for the 2014 financial year. Mar 27, 2008 it now becomes clear why eskom needed to ask the national energy regulator of south africa for an urgent 60% tariff increase, just to meet its running costs. Advocate dennis fine sc for nersa said it was an untenable argument that the rca application should be brought during the year to which it applies, in this case during 2014. Homelight 20a and 60a the tariff structure for residential customers is an inclining block tariff ibt. Indicative municipal tariff guideline, benchmarks and proposed timelines for municipal tariff approval process for the 2011 12 financial year comments and inputs. The national energy regulator of south africa nersa has allowed eskom to raise tariffs by 2. Eskom tariff increases approved published by capeetc on march 8, 2019 eskom has been granted an electricity tariff increase by the national energy regulator of south africa nersa over the next three financial years as way to generate enough funds to escape its current state of financial instability. Capital structure and optimal gearing levels are business specific and the nature of soes are not the same. Why eskom should cancel its 60% tariff increase application. Even an efficient, wellrun electricity utility would not be able to operate on eskoms tariff levels, according to an international energy expert.

Proposed tariff structure, consisting of a tariff methodology and a pricing strategy, that was drawn up by the national ports authority npa in accordance with section 721a of the national ports act, 2005 act no. Eskom electricity governance initiative south africa page 8. Eskom pleads for tariff hikes and state bailout to avert. New and additional power supply myeskom customer app customer services website csonline tariffs and charges customer service information complaint handling process eskom smart prepaid split meters programme municipal loadshedding schedules. The first block of electricity is at the lowest price. Feb 04, 2014 no representation or warranty is given regarding the accuracy of any information contained in the tariff book. Eskom has reportedly requested a reduced tariff increase of 9.

How does the eskom tariff structure prejudice farmers. Low demand tariff applicable to months september to may. It is hoped that the above will clarify common misconceptions in respect of city power and eskom domestic electricity tariffs and pricing. Introduction in 1999, eskom developed its first strategic pricing direction in which specific goals were set for eskom s standard tariffs, which was followed by the 2007 version. In 20, nersa said that eskom could only raise tariffs 8% a. Furthermore, electricity prices are in a state of flux at this time. The power utility cited that it would want nersa to give it a green light to increase the electricity tariff hike by 25.