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Eskom proposes alternative tariff for predominantly residential municipalities

Eskom has made a submission to the national energy regulator of South Africa (Nersa) for the approval of an alternative municipality tariff to be called Muniflex. This is designed for municipalities with a predominatly residential customer mix in their area of supply.

Nersa has been asked to approve the new tariff option for municipalities in the 2014/15 financial year. It features an urban and rural version of a two-part peak and off-peak time-of-use (ToU) tariff option with no seasonal differentiation. Only the energy charges have been redesigned, whereas all other charges are same as the existing Megaflex and Ruraflex tariff options.

The rates are the same as the 2014/2015 MYPD3 decision and will be revenue neutral for Eskom. In order to qualify a municipality must have a predominantely residential customer base mix at municipality level, not at account or point of delivery level. A predominantly residential customer base mix is regarded as being where at least 60% of the consumption is residential at the total municipal level. High voltage and transmission connected supplies will not qualify for the tariff.

If approved, the target implementation date is the 1st of July 2014. The decision was taken in response to complaints from municipalities to Nersa due to Eskom’s high winter ToU tariffs where municipalities said they were unable to responde to the ToU signal due to their customer base mix.