- The National Energy Regulator of South Africa (NERSA) today announced that on 5 November 2024, the Energy Regulator approved the publication of a consultation paper and timelines to process Eskom’s retail tariff plan (RTP) application.
- The new tariff structure will affect homeowners that have grid tied solar PV system through the unbundling the home power tariff into separate energy, network and retail charges.
- The proposed tariff changes to make electricity pricing fairer and more transparent argues Eskom. Read more
Eskom submitted the RTP application on 18 September 2024, requesting that the Energy Regulator approve changes to the structures of the Schedule of Standard Prices for Eskom Tariffs (‘Standard Tariffs’) for implementation in the 2025/26 financial year. The proposed changes are based on Eskom’s 2024/25 financial year cost-to-serve study.
Eskom’s RTP proposes the following changes to its tariff structures and rates:
An update of all tariff charges with costs from the 2024/25 cost-to-serve study with the associated adjustment of time-of-use (ToU) periods and the further unbundling of energy charges across all tariffs, except the Homelight tariff.
- Rationalisation of municipal (Local Authority) tariffs by consolidating the previous 15 tariffs into three, i.e. Municflex [large power user(LPU)], Municrate [small power user [SPU)], and Public Lighting (non-metered lighting supplies).
- For LPU tariffs, raising customer service charges on the number of points of delivery (PODs) and not per account.
- Unbundling the Homepower tariff into separate energy, network and retail charges.
- Converting the residential lifeline tariff, Homelight 20A, into a single c/kWh energy rate.
- Making the affordability subsidy charge in the Gen-Wheeling tariff non-creditable.
- Amending transmission loss factors for generators to reflect the current network configuration.
Stakeholders are requested to comment in writing on the consultation paper on Eskom’s RTP application. Written comments can be forwarded to ertsa@nersa.org.za; hand delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria; or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for the submission of comments is 17 December 2024 at 16:00.
The consultation paper and Eskom’s RTP application are available on the NERSA website as follows:
Consultation Paper on Eskom’s Retail Tariff Restructuring Plan: https://www.nersa.org.za/wp-content/uploads/2024/11/Annexure-1-Consultation-Paper-on-Eskom-Retail-Tariff-Restructuring-Plan.pdf
Cover letter to NERSA on Eskom’s Retail Tariff Plan 2025 submission to NERSA: https://www.nersa.org.za/wp-content/uploads/2024/11/Cover-letter-to-NERSA_Eskom-Retail-Tariff-Plan-2025-submission-to-NERSA.pdf
Eskom Retail Tariff Plan application: https://www.nersa.org.za/wp-content/uploads/2024/11/Eskom-Retail-Tariff-Plan-application.pdf
The regulator plans to make an announcment on its decision on 30th January 2025.
Author: Bryan Groenendaal
