On Monday, state utility Eskom assured residential consumers that potential plans to increase electricity tariffs would not apply to them.

This statement came as a response to an article published by Reuters, blanketing the utility’s plans to increase electricity tariffs when the system was under constrain.

Critical Peak Day Pricing – pilot project

Eskom launched a pilot project in 2013 dubbed the Critical Peak Day Pricing project aimed at consumers who use a time-of-use metering system.

The project charges higher electricity tariffs on days when the system is under severe pressure to motivate consumers to reduce their power demand. Those consumers involved in the pilot have consented to participate and are largely from the agricultural sector.

Participants are notified a day in advance of the critical period, allowing them the option to reduce consumption or pay more. The utility has a 17-day allocation in a year to enforce this critical period. Anything over will result in breach of their contract with participants.

This pricing scheme is used throughout the world ‘as a tool for customers to respond to system constraints and to save money if they reduce electricity usage’, Eskom said.

‘Again note that the customers on the pilot are customers that have time-of-use metering which means that it cannot be offered at this stage to residential customers’, Eskom reiterated.

 

(Pic Credits: Fieldsync)