Eskom has introduced a new Retail Tariff Plan aimed at restructuring electricity tariffs to “better reflect” the actual costs of generation, transmission, and distribution across all customer segments, from municipalities to end-consumers. The National Energy Regulator of South Africa (NERSA) has published the plan for public consultation, inviting feedback from stakeholders.

Eskom Group Executive for Distribution, Monde Bala explained that these tariff charges are separate from Eskom’s current revenue application to NERSA. “Eskom will not generate additional revenue from the proposed tariff restructuring but will rebalance the charges while remaining within the 2024/2025 costs already approved by NERSA.

Under the proposed changes, municipality tariffs will be consolidated from 15 tariffs into three tariffs: Municflex for large power users, Municrate for small power users and public lighting for non-metered lighting supplies. Municipal distributors purchasing in bulk will benefit from lower costs on average due to lower subsidy contributions and reduced fixed charges.

Large industry, mining, commercial and rural customers will also see a reduction in fixed charges. Tariffs for large industry would be calculated on each point of supply and not per account.

Customers who use rooftop photovoltaics, but also use the grid as a backup, will now be required to pay for using the Eskom network. The power utility also plans to remove the inclining block tariff, which charges residential households more per unit of electricity depending on how many times a month they purchase electricity.

The utility said these unbundled tariffs will enable fair cost recovery, avoid unfair cross-subsidies and support the responsible integration of alternative energy sources.

“The electricity supply industry is undergoing fundamental changes that will set the course for economic growth and prosperity in the years ahead. It is therefore vital that as many stakeholders as possible engage with NERSA on the proposed changes to support the determination of tariffs that are as fair as possible for all customers,” said Bala.

The published Retail Tariff  Plan can be found here.

Eskom encourages members of the public to take part in public hearings, where the utility will respond to all questions on the proposed tariff structure.