Eskom tariff book 2011 12

Eskom pleads for tariff hikes and state bailout to avert. Eskom has asked the energy regulator for a 15% annual tariff increase for three consecutive years. In 2008 when eskom was about to submit the mypd, they assessed the funding that was required. Incline block tariffs divide the electricity price into several steps or blocks. Eskom challenges latest power tariff decision in court. Eskom accordingly disclaims any and all liability resulting from the use of or reliance on the information contained in the tariff book. Google scholar department of energy, republic of south africa 2011 renewable energy ipp procurement programme. Eskom increased its prices by 12,69% on 1 april 2015, while municipalities increase their prices on 1 july each year. Department of energy renewable energy bidders conference. The power utility cited that it would want nersa to give it a green light to increase the electricity tariff hike by 25. 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. Eskom asset restructuring a study into the impact on the long. Current tariffs electricity charges with effect from 1st. In 2008, eskom wanted to submit a threeyear application that would cover 200910, 201011 and 20112012.

The first block of electricity is at the lowest price. This is the third edition of eskom s strategic pricing direction. The national energy regulator of south africa nersa has approved a 2. 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. Eskoms 201112 tariff rates including impact and tariff comparison modelling tools can. The 20102011 electricity tariff adjustment for nala local. For the 201920 year eskom wants r219bn, for 202021 the power utility wants r252bn and in 202122 eskom wants r291bn. Eskom applies to nersa to approve the revenue it intends to collect. As consumption increases, the tariff rates become more expensive. Briefing by eskom on its tariff increase for 201718 and amended pricing structure for municipalities with effect from 1 july 2017. Rod crompton, adjunct professor african energy leadership centre wits business school, university of the witwatersrand. In addition, eskom has since applied to nersa for a further 12,61% increase in its 201516 prices i. Eskom asks for reduced tariff increase businesstech.

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. High demand tariff aplicable to winter months june, july and august. Between 199596 and 200506 eskoms net profit margin averaged 12. For tariff impact calculations and for more information on eskoms schedule of. 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. This means it is a tariff structure with tariff charges that change based on the amount of consumption. The people of south africa, especially the poor, can no longer depend on the anc to better their lives. Jun 05, 2017 eskom acknowledges that a 20% tariff increase could have a 0,76% impact on the consumer price index. It was also necessary to recognise the impact of the 78 percent tariff increase between 2008 and 2011 on consumers and the economy. Eskom electricity governance initiative south africa page 8. Please refer to the 201819 tariff book for local authority tariffs 1 april 2019 to 30 june. 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. How far weve come a history of electricity tariffs. 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.

If that price rise keeps going, our example household will be paying just under r2000 each and every month by 2018. Public hearings on eskoms demand for a 15% electricity tariff increase over the next three years will start in cape town next week and. This is on top of the confirmation that load shedding has been confirmed for today. Johannesburg eskoms application for tariff increases had been ready for submission when government asked it to look at additional factors, the. Will social grants go up by 34 from the 1st of april 2009. The homeflex tariff rates for 201112 are as follows. 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. 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 asset restructuring a study into the impact on the longrun electricity tariff path date. She asked whether the r225 billion gap included the r190 billion gap from the previous financial year. While most south africans have strongly opposed eskoms tariff increase of just under 14% that kicked in. Strategic direction and tariff design principles for s tariffs.

Eskoms schedule of standard prices and the details of. 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. 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. Jun 12, 2018 on december 15, 2017, the energy regulator approved a 5. In 2015 and 2017 we published infographics showing eskom annual tariff increases since 1988 compared to inflation following nersas approval of a. Eskom had applied for revenue of r99bn in 2010 11, r146bn in 2011 12 and r216bn in 2012. Even an efficient, wellrun electricity utility would not be able to operate on eskoms tariff levels, according to an international energy expert. Renewable energy incentives across varying levels of. 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. Eskom misses deadline for tariff appeal biznis africa. Some of this information is unaudited or subject to revision. Instead, eskom has struggled and strained and managed to squeeze next years price rise to 12. The lower increases and expected revenue are a big wakeup call for the utility.

This meant the regulator approved an allowable revenue of r190. Eskom asset restructuring a study into the impact on the. Charges that may be applicable to tariffs continued. It was followed by an interim integrated report in november 2012. Sep 14, 2017 nersa kicks off consultation for huge eskom tariff increase.

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. As the customer purchases more electricity during the month, the electricity bought will eventually fall in block two which is a bit more expensive. 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. 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. The less it sells, the higher the tariff it wants, and the less it sells the utility death spiral. Eskom challenges latest power tariff decision in court alexander winning 20191011 14.

In 20, nersa said that eskom could only raise tariffs 8% a. Prior to 2007 eskom managed to achieve significant profits. Eskom eskom performance for the yearended 31 march 2017. 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. Eskom heads to court to demand higher tariffs techcentral. 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. The governments support for eskom comes amid a groundswell of discontent over the proposal, and a sharp attack. The details contained in the tariff book are purely to inform you of eskom s tariffs and charges. Back to the drawing board for eskoms proposed tariff hike.

The allowed revenue of r205 214 million for the 201718 financial. Jun 23, 2015 eskom has asked at public hearings that it be allowed to raise prices to, in part, fuel gas turbines. Capital structure and optimal gearing levels are business specific and the nature of soes are not the same. To date, the department of energy has implemented irp 2010 by issuing ministerial determinations in accordance with section 34 of the era. One of the big drivers in terms of costs was that eskom had embarked on a big build programme. Electricity tariff suitable for high load factor urban customers with an nmd. Click to edit master title style amazon web services. In decision and reasons for decision, a 118page document released this week, nersa outlines why it cut the 19. 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. Apr 01, 2015 this means eskom tariffs will increase by 12. The increase has already taken effect and comes as nersa concluded its public hearings in relation to eskoms.

Under no circumstances should the tariff book be regarded as an amendment of any agreements with eskom. How does the eskom tariff structure prejudice farmers. Disclaimer the details contained in the tariff book is purely to inform you of eskoms tariffs and charges. Ppt eskom tariff hike earthlife africa jhb powerpoint. 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. Oct 16, 2017 johannesburg the energy intensive users group eiug on friday said eskoms application for a 19.

This revenue results in an annual average price increase of 5. Eskom pleads for tariff hikes and state bailout to avert disaster. This increase will be effective from the 1st july 2017. Schedule 4 of the constitution makes electricity reticulation a municipal. 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 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. 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. 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. Eskoms 2011 12 integrated report was well received. 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.

The roadmap for eskom in a reformed electricity supply industry is compiled with the latest available information from departmental and other resources. Indicative municipal tariff guideline, benchmarks and. Dec 15, 2017 south africas energy regulator nersa said on friday it had granted power utility eskom a 5. The details contained in the tariff book are purely to inform you of eskoms. 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. Eskom has reportedly requested a reduced tariff increase of 9. 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. Homelight 20a and 60a the tariff structure for residential customers is an inclining block tariff ibt. Southern cape karoo electricity forum hendrik barnard. Eskom confirms that the price increase to be implemented on 1 april 2015 to eskom direct customers is still 12. The respective average percentage increases are shown on the following page. Why eskom should cancel its 60% tariff increase application.

Use data analytics to assess information from smart meters for effective tariff. 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. Furthermore, electricity prices are in a state of flux at this time. This is a 15% tariff increase per year for the next three years. Eskom cannot operate with the current tariff level.

Giant energy provider, eskom made an urgent application to nersa with the thrust of a tariff hike. Feb 04, 2014 no representation or warranty is given regarding the accuracy of any information contained in the tariff book. Essentially the regulator determines the tariffs eskom can charge consumers. Disclaimer the details contained in the tariff book is purely to inform you of eskom s tariffs and charges. Book a seat at the 2019 business day tv sme summit. The national energy regulator of south africa nersa has allowed eskom to raise tariffs by 2.

Environmental levy in the recent budget speech, the finance minister announced. Eskoms sales have been declining by about 1% per annum. The utility has also taken on board a suggestion that the horizon for transitioning towards costreflective tariffs be extended. National ports authority proposed tariff methodology. Makwana said that despite the revised lower increase, eskom would still have a shortfall of r14. 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. Mertens says it is a feather in the chambers cap that it succeeded in limiting the eskom tariff increase to 2. Eskom tariff hike earthlife africa jhb about 12 million south africans live on social grants i. Domestic electricity prices of six metros and eskom compared. Eskom applies for 15% tariff increase businesslive. Generally risk profiles differ from one business to the other. Strategic direction and tariff design principles for eskom s tariffs eskom 2017 5 of 47 1. Eskom presentation select committee on communications and public enterprises 14 june 2017.