- Draft report examines the impact of fixed electricity charges and Eskom’s revised tariff structure.
- Findings show tariff reforms affect customer groups differently based on consumption patterns and operational needs.
- Stakeholders have been invited to submit comments before NERSA finalises the report.
The National Energy Regulator of South Africa has published the draft report of its market inquiry into fixed electricity charges and Eskom’s revised tariff structure, inviting stakeholders to provide comments before the findings are finalised.
The inquiry examines the impact of fixed charges imposed by electricity distributors, together with Eskom’s generation capacity charge, legacy charge and variable energy charge introduced under the approved Retail Tariff Plan.
According to NERSA, publication of the draft report marks an important milestone in the inquiry and provides stakeholders with an opportunity to review the methodology, evidence, findings and recommendations before the report is finalised. The regulator said the consultation process is intended to strengthen transparency, encourage broad participation and support evidence based regulatory decision making.
The market inquiry was launched in response to concerns raised by electricity customers and industry participants over the structure, transparency, justification and practical impact of fixed charges and Eskom’s tariff reforms. The regulator assessed whether the revised tariff framework has achieved its objectives of improving cost reflectivity and supporting the long-term sustainability of the electricity sector while maintaining affordability, fairness and efficient market outcomes.
The draft report draws on stakeholder submissions, public hearing presentations, tariff analysis, customer consumption data and regulatory assessments. Participants in the inquiry included municipalities, Eskom, business organisations, agricultural bodies, energy intensive users, industry associations, consultants, electricity traders and individual customers.
The findings indicate that while the move towards more cost reflective tariffs is supported by sound regulatory principles, the impact varies significantly across customer categories. Differences in electricity consumption patterns, operational requirements, load factors and the ability to respond to pricing signals all influence how customers are affected.
The report also highlights the effect of time of use tariff changes on sectors such as agriculture, where electricity demand is often determined by production cycles and operational requirements, limiting opportunities to shift consumption to lower cost periods.
Looking ahead, the report considers how tariff design can support South Africa’s evolving electricity market through greater transparency in cost allocation, more effective competition and a regulatory framework that promotes long term sustainability while protecting consumers.
Download the consultation paper on NERSA trading rules HERE
Download draft NERSA rules on electricity trading HERE
NERSA has invited electricity customers, municipalities, Eskom, industry participants, business organisations, agricultural bodies and consumer representatives to review the draft report and submit written comments on its findings and recommendations.
Written submissions and queries should be directed to electricity.marketinquiry@nersa.org.za
Feedback received during the consultation process will be used to refine the report before publication of the final market inquiry, which NERSA said will reflect the evidence and stakeholder perspectives gathered throughout the process.
Author: Bryan Groenendaal
