Eskom weighs peak day tariff idea

File photo: Dean Hutton/Bloomberg.

File photo: Dean Hutton/Bloomberg.

Published Jan 28, 2015

Share

Eskom has downplayed reports that it will hike its prices on days when the system is expected to be under severe strain in order to reduce demand.

According to Eskom’s critical peak day pricing pilot project document, on critical peak days – where notification has been sent a day ahead – the energy charges applied from 6am to 10pm will be significantly higher.

The document says that “as part of Eskom’s efforts to keep the lights on, Eskom aims to introduce a new critical peak day tariff, which encourages electricity savings and empowers customers to become active participants in demand response”.

The power utility said this would provide customers with a signal to respond by either curtailing or reducing their consumption or by paying the critical peak day rates.

Customers will be given 24 hours notification via SMS and e-mail before the occurrence of a critical peak day, so that planning for the curtailment or reduction in the use of electricity can be done. A reminder SMS will be sent on the day, according to the document.

However, the Eskom media desk told Business Report last night that this pilot project was meant for intensive energy users and those with a special metering system, not residential customers.

“This is a pilot project conducted throughout the country. Once we are done with it, we will then decide whether to adopt it or not,” Eskom said.

It said for now it was targeting agricultural customers.

The power utility said it had not engaged with the state energy regulator, which was in charge of authorising tariff increases.

Mike Schussler, the chief economist at research group Economists.co.za, said these plans were not new. “They have had those prime tariffs for a while for heavy energy users. But I think they will try and roll it out a bit more.”

Related Topics: