Eskom proposes new power tariffs which could have frustrating results for solar panel users. South African households using lower-than-average electricity or on-grid solar power will pay hundreds of rands more every month.
The power utility currently charges a single electricity tariff for much of the variable and fixed costs which accumulate in producing electricity, calculated per kWh.
But according to The South African, Eskom has deemed it necessary to modernise the tariffs in order to reflect the changing electricity environment. The power utility also wants to ensure fair recovery by all of the services to be provided to all grid users and the system.
Eskom says “the aim is not to get additional revenue but to rebalance tariffs in such a way that fixed costs are recovered to a greater extent by fixed charges”.
According to the power utility, the current tariff structure subsides those households with lower usage through the fees charged to those with higher consumption. With its new tariffs, it would be designed so that, as far as possible, the average customer should pay no more or less than their current tariff structure.
However, Mybroadband reports that the new structured tariffs will hit solar users harder.
The chart above, from Mybroadband, illustrates how an electricity bill for various usage levels would compare if Eskom implements the proposed changes to its Homepower 1 tariff. It also shows how these charges compare with a cost-reflective tariff.
Customers would have to pay a fixed capacity fee, regardless of power usage, to cover fixed costs. Another fee will be paid based on consumption of Eskom’s power.
Eskom had initially charged R218 for grid connections if solar power users used none of the power utility’s electrity. With the new proposed additional fixed capacity charge, solar power users will see an extra R720 per month, totaling R938.
It seems Eskom is after those who have found their own way of generating power. The actual tariff increase gets lower as households consume more of Eskom’s electricity, making it seem like the utility is disincentivising using self-generation with the grid as backup.
The tariff structure will subsidise those with lower power usage through the fees charged to those with higher consumption.
The upside, however, is that Eskom will also propose a net-billing rate for those who are able to produce excess electricity.
This rate would be the same as a new time-of-use energy charge. With this mechanism, the power utility would effectively give electricity back to the consumer at month-end, resulting in a discount on their bill.
But Eskom says it would propose the structural changes to more cost-reflective capacity-based charges regardless of the net-billing being in place.
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Picture: Cape {town} Etc gallery