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  Additional Information
  This is additional information not included in the printed 2008 Annual Report.
   
 
Tariff restructuring    
   
 
During the period, the tariff structures remained the same except for the “Hometake” tariff (tariff to certain previously taken-over areas). The foundation is now laid for improved time-of-use signals, cost reflectivity and transparency in future tariffs:

  • The final adjustment to the residential tariff “Hometake” was implemented. The result is that residential customers in supply areas previously taken over by Eskom are now aligned to other similar residential tariffs within the “Homelight 2” tariff option.
  • The residential time-of-use tariff “Homeflex” development was finalised and is planned for rollout to medium and high-consumption residential customers (for example, households with geysers) during the next financial year.
  • Tariff structural changes that propose further unbundled large supply size tariff options, increased cost-reflectivity and phasing-in the rationalisation of subsidy contributions were developed and submitted to the Nersa for approval. The implementation of the proposed structural adjustments to the tariffs is anticipated for the 2010 financial year.
  • During the period going forward the following changes are expected:
 
  • the unbundling of transmission and distribution network charges for Megaflex, Nightsave Urban, Miniflex, Nightsave Rural and Ruraflex tariffs:
 
  • differentiating transmission network charges according to transmission zones
  • differentiating distribution network charges according to approved voltage categories and between rural and urban supplies
  • separately showing and charging technical losses on the transmission and distribution system in accordance with Nersa-approved distribution and transmission loss factors
 
  • an increase in the price differential of network charges between high-voltage and low-voltage customers from 0-17% to 0-25%, making voltage differentials more cost-reflective
  • splitting of the current Nightsave Urban tariff into Nightsave Urban (small) for supply sizes <1MVA and Nightsave Urban (large) for supply sizes> 1MVA
  • alignment, in a phased manner, of the contribution made through the rate-rebalancing levy to socio-economic subsidies for Megaflex, Miniflex and Nightsave Urban tariffs
  • removal of the time-of-use conversion surcharge for existing and new supplies as far as revenue risk permits
  • introduction of a rate matrix for Megaflex, Nightsave Urban (small), Nightsave Urban (large), Miniflex, Nightsave Rural and Ruraflex tariffs to simplify the bill.
 
Table of Eskom’s tariff options:
 
  Tariff   Description  
  Nightsave Urban   Electricity tariff for urban customers with an NMD (notified maximum demand) from 25kVA  
  Megaflex   TOU (time of use) electricity tariff for urban customers with an NMD greater than 1MVA that are able to shift load   
  Miniflex   TOU electricity tariff for urban customers with an NMD from 25kVA up to 5MVA   
  Businessrate   Electricity tariff for small businesses, governmental institutions or similar supplies in urban areas with an NMD of up to 100kVA  
  Homepower Standard   Electricity tariff for medium to high-usage residential customers in urban areas with an NMD of up to 100kVA  
  Homepower Bulk   Electricity tariff for residential bulk supplies, typically sectional title developments and multiple housing units, in urban areas connected prior to 1 January 2004  
  Homelight   Electricity tariff for single-phase, low-usage residential supplies in urban areas, but can also be applied to churches, schools, halls, or similar supplies with low-usage residential customers in urban areas  
  Nightsave Rural   Electricity tariff for high-load-factor rural customers with an NMD from 25kVA with a supply voltage  22kV (or 33kV where designated by Eskom as rural)  
  Ruraflex   TOU electricity tariff for rural customers with dual- and three-phase supplies with an NMD from 25kVA with a supply voltage  22kV (or 33kV where designated by Eskom as rural)  
  Landrate   Electricity tariff for rural customers with an NMD up to 100kVA with a supply voltage 500V  
  Public lighting tariffs   Electricity tariff for public lighting or similar supplies  
   
 
Tariff restructuring       Back to top