Eskom’s peak day tariff application gets support from energy group

THE ENERGY Intensive User Group of Southern Africa (EIUG) has come out in support of Eskom’s application for a socalled critical peak day tariff.

The power utility has asked National Energy Regulator of South Africa (Nersa) to approve the new tariff option, which gives Eskom’s large electricity users the option to reduce consumption when the power system is constrained.

The regulator is soliciting public comments on Eskom’s application.

It has published the time lines for the approval of the application, saying it would hold public hearings on December 2 while the decision would be made in January next year.

Eskom submitted the application in November last year and Nersa published it on November 19. The critical peak day tariff option would apply voluntarily to Eskom’s large power customers. In an application to Nersa Eskom said during times of constrained power system sustainable solutions were necessary to create “breathing space” for the power utility.

“Critical peak day pricing is a tariff option that has been internationally proven to reduce on the specific days that load reduction is required. This is achieved by increasing the electricity price on these system-constrained days and lowering the prices on non-constrained or normal days of the year. These system-constrained days are typically

The tariff option was initially intended as a voluntary tariff to the utility’s large power users.

days on which the utility gives customers notification of being critical peak days,” Eskom said.

EIUG spokesman Shaun Nel on Friday said the group fully supported the proposed tariff option. “We think it is a good thing. It will give our members the flexibility to come off the system when the supply is constrained. We are also happy with the engagements we had with Eskom about the (critical peak) tariff,” said Nel.

EIUG is an association of energy intensive users who are among Eskom’s largest customers. In the application, Eskom said if customers chose to reduce consumption on the days in which reduction was required, the customers would reduce their electricity costs, while giving the utility “breathing space.” It said the tariff option was initially intended as a voluntary tariff to the utility’s large power users, and would, at a later stage be extended to local authorities and small power users, “depending on the required metering infrastructure being in place.”

Load reduction

According to Eskom, the critical peak day pricing was intended to provide an incentivised pricing signal that would encourage customers to reduce their electricity consumption when load reduction was required. It would also give customers flexibility to make informed decisions by allowing them to decide whether or not to reduce consumption on the days when load reduction was required.

The critical peak-day option would be provided to customers on, among others, he existing Miniflex, Nightsave Small, Nightsave Rural, Ruralflex and Night Large tariffs.

Eskom said it had previously piloted the proposed tariff option to approximately 138 customers in the tariff target markets. “A total of 97 percent of the pilot customers supported the national implementation of the critical peak day tariff options on a voluntary basis, while 3 percent indicated that they did not support the critical peak day tariff options voluntarily,” said Eskom.