Feb 24, 2010
Regulator sets much-vaunted block tariff structure in motionBack
© Reuse this
The tariff structure, which is viewed as a key tool in providing a cross-subsidy for low-income domestic consumers and which is also a requirement of the relatively new Electricity Pricing Policy, would be implemented during the period from April 1, 2010, through to March 31, 2013.
In 2010/11, the new mechanism will translate, owing mainly to implementation issues, into a 10,59% reduction in the tariff, to 54,7c/kWh, for households consuming less than 50 kWhs of power monthly, and a reduction of 5,2%, to 58,48c/kWh, for those consuming between 51 kWhs and 350 kWhs monthly.
The tariff would increase by 5,4% and 5,5% in the 2011/12 and 2012/13 years respectively (rising eventually to 60,83c/kWh) for those in the sub-50-kWh band, and by 13,23% and 13,5% respectively for those consuming between 51 kWhs and 350 kWhs, with the price rising to 75,09c/kWh by the end of the MYPD2 period.
By contrast, households consuming between 351 kWhs and 600 kWhs monthly will face immediate increases of 21,95%, raising the price to 72,35c/kWh in 2010/11, with subsequent yearly increases of 25,8% and 25,9% planned, which would raise the price to 120c/kWh in 2012/13.
Those households consuming more than 601 kWhs monthly would face relatively punitive tariff increases of 35,82% to 83,74c/kWh in 2010/11, followed by increases of 25,8% and 25,9% in 2011/12 and 2012/13, which would raise the price to 132c/kWh by the end of the MYPD2 period.
Nersa calculates that the average residential tariff across all four blocks would be 60,6c/kWh in 2010/11, rising to 68,83c/kWh next year, and to 78,62c/kWh by 2012/13.
Nersa's Thembani Bukula said that the block tariffs would be carried over to the block tariffs of the municipalities, which distribute power, mostly generated by Eskom, to the majority of residential consumers in South Africa.
Earthlife Africa, which has been a strong advocate of block tariffs, welcomed Nersa's decision "to implement a rising residential step block tariff".
However, it implored the regulator to revise the 50 kWh of free basic electricity allowance and to consider increasing it to 200 kWhs per household a month.
"There needs to be mechanisms to safeguard the millions of poor people in SA from these tariff increases," it said, noting that Nersa had approved increases of 24,8% in 2010/2011, 25,8% in 2011/2012 and an increase of 25,4% in 2012/2013.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 6 hours ago While there are battery-powered bolting solutions for wind turbine maintenance, the general consensus among wind energy industry stakeholders is that these solutions lack battery longevity and often succumb to overheating and bending, says bolting systems...
Updated 6 hours ago While wind turbines are standard products that are designed, verified by prototype testing and independently certified, their foundations are designed on a project-by-project basis to suit site-specific ground conditions. This, according to engineering consulting...
Updated 6 hours ago Engineering consulting firm Hatch Goba has introduced a new approach to integrated earthing for wind energy facilities, using insulated cables to connect the individual wind turbine groundmats to the substation groundmat, taking the equivalent circuit of the entire...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Updated 6 hours ago The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
Updated 6 hours ago The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
Updated 6 hours ago City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
Updated 6 hours ago About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Updated 6 hours ago Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...