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  • © Eskom April 2016 Page 1

    Tariffs & Charges Booklet

    2016/17

    Disclaimer The details contained in the Tariff book are purely to inform you of Eskom’s tariffs and charges. Under no

    circumstances should the Tariff book be regarded as an amendment of any agreements with Eskom. No

    representation or warranty is given regarding the accuracy of any information contained in the Tariff book. Eskom

    accordingly disclaims any and all liability resulting from the use of or reliance on the information contained in the

    Tariff book. The official documents containing Eskom’s tariffs are the Schedule of Standard Prices and

    can be accessed on the website: www.eskom.co.za/tariffs.

    http://www.eskom.co.za/tariffs

  • © Eskom April 2016 Page 2

    CONTENTS

    1. Customer contact information 4

    2. Eskom's customer service charter 4

    3. Foreword 5

    4. Abbreviations 7

    5. Definitions 7

    6. Urbanp tariffs (non-local authority / local authority)

    6.1. Large 10

    Electricity tariff for high load factor urbanp customers with an NMD greater than 1 MVA

    6.2. 10

    Electricity tariff for high load factor urbanp customers with an NMD from 25 kVA up to 1 MVA

    6.3. 15

    TOU electricity tariff for urbanp customers with an NMD greater than 1 MVA able to shift load

    6.4. 18

    TOU electricity tariff for urbanp customers with an NMD from 25 kVA up to 5 MVA able to shift load

    6.5. Megaflex Gen 21

    An electricity tariff for Urbanp customers connected at medium voltage, high voltage and Transmission voltages that consume energy (importers of energy from the Transmission and Distribution System) and generate energy (exporters of energy to the Transmission and Distribution System) at the same point of supply (or metering point).

    6.6. 23

    Tariff for small businesses, governmental institutions or similar supplies in urbanp areas with an NMD up to 100 kVA

    6.7. Public Lighting 24

    Electricity tariff for public lighting or similar supplies where Eskom provides a supply for, and maintains, any street lighting or similar public lighting.

    7. Residential tariffs (non-local authority and local authority)

    7.1. 26

    Electricity tariff for residential bulk supplies, typically sectional title developments and multiple housing units, in urbanp areas.

    Urban Large

    Urban Small

  • © Eskom April 2016 Page 3

    7.2. 26

    Electricity tariff suitable for residential customers, in urbanp areas with an NMD of up to

    100kVA.

    7.3. 27

    Suite of electricity tariffs that provides a subsidy to low-usage, single-phase residential supplies in urbanp areas

    8. Ruralp tariffs (non-local authority and local authority)

    8.1. 28

    Electricity tariff for high load factor ruralp customers with an NMD from 25 kVA with a supply voltage ≤ 22 kV (or 33 kV where designated by Eskom as rural)

    8.2. 30

    TOU electricity tariff for ruralp customers with dual and three-phase supplies with an NMD from 25 kVA with a supply voltage ≤ 22 kV (or 33 kV where designated by Eskom as rural)

    8.3. Ruraflex Gen 31

    An electricity tariff for Ruralp customers that consume energy (importers of energy from the

    Eskom System) and generate energy (exporters of energy to the Eskom System) at the same

    point of supply (or metering point).

    8.4. 33

    Electricity tariff for ruralp customers with an NMD up to 100 kVA with a supply voltage of ≤ 500V

    8.5. 34

    Electricity tariff that provides a subsidy to low-usage single-phase supplies in ruralp areas, limited to 20A

    9. Generator Tariffs 35

    10. Appendices

    A. Transmission zones and applicable percentage 37 B. Treatment of public holidays 38 C. Eskom’s defined time of use periods 39 D. WEPS energy rate excluding losses 40 E. Loss factors for generators

    and loads

    F. Explanation of the excess network capacity charge for the NMD rules 42 G. Eskom’s average price adjustment 43 H. Pricing of electricity 44 I. Billing 45

    Rural

  • © Eskom April 2016 Page 4

    CONTACT NUMBERS

    Customers can contact the Eskom Call-Centre for customer services such as account queries, applications for new connections, transfer of existing accounts and termination of accounts.

    Eskom has introduced an easy-to-remember national ShareCall number:

     dial 08600ESKOM on a phone with an alphanumeric keypad; or

     dial 0860037566 if your phone does not have an alphanumeric keypad.

    Customers can an SMS message stating their customer service requirement to the following number:

    35328

    For the latest contact details and tariff information, visit our web site at www.eskom.co.za/tariffs.

    ESKOM'S CUSTOMER SERVICE CHARTER

    Our customers have the right:

     to accurate measurement of consumption;

     to error-free bills;

     to be treated with respect;

     to experience excellent treatment in terms of Eskom's electricity supply agreement;

     to be dealt with promptly and efficiently;

     to be treated fairly;

     to have their property treated with respect;

     to the confidentiality of their information;

     to one-stop service without referral;

     to quality of supply in terms of negotiated agreement; and

     to be involved in issues affecting them.

    Visit our web site at www.eskom.co.za for more information on Eskom's service levels. Go to:

     Customer Care

     Customer Service Information

    To view energy saving tips, please visit: http://www.eskom.co.za/sites/idm/Pages/Home.aspx

    http://www.eskom.co.za/tariffs http://www.eskom.co.za/ http://www.eskom.co.za/sites/idm/Pages/Home.aspx

  • © Eskom April 2016 Page 5

    FOREWORD

    On 28 February 2013, the National Energy Regulator of South Africa (NERSA) approved an annual 8% price increase to Eskom’s tariffs for the Multi-year Price Determination 3 (MYPD 3) period 2013/14 to 2017/18. The MYPD Methodology also provides for an annual Risk Management mechanism administered by way of the Regulatory Clearing Account (RCA). The RCA process is entrenched in the current NERSA methodology and is a globally accepted regulatory principle that reconciles variances between the actual costs that Eskom incurred in 2013/14 (audited annual financial statement) in the production of electricity and the MYPD3 record of decision by Nersa. Eskom submitted the 2013/14 RCA submission for the first year of the MYPD 3 period in November 2015 and provided detailed reasons for the variances between actual results and the assumptions made for the MYPD3 revenue decision. Based on the available information; public consultation and the analysis of the 'Regulatory Clearing Account (RCA) Application – third Multi Year Price Determination (MYPD3) Year 1 (2013/14)’; the Energy Regulator, at its meeting held on 1 March 2016 approved the recovery of an RCA balance of R10 257m from Eskom’s standard tariff customers for the 2016/17 financial year. The NERSA approved revenue requirement for year 4 of the MYPD3 plus the approved RCA balance value resulted in a 9.4% increase to Eskom average annual price for the 2016/17 financial year. The tariff increase applicable for 2016/17 financial year resulting from both the original MYPD 3 decision and RCA balance as approved by the NERSA from 1 April 2016 for Eskom direct customers and from 1 July 2016 for municipalities is as follows:

    2016/17 tariff increases

    Tariff Category

    Average percentage increase per tariff category

    Non-local Authority tariffs (1 April 2016)

    Urban

    Other tariff charges 9.4%

    Affordability Subsidy Charge 8.6%

    Residential

    Homelight 20A

    Block 1 7.2%

    Block 2 9.0%

    Homelight 60A 9.4%

    Homepower 9.4%

    Rural 9.4%

    Local Authority Tariffs (1 July 2016)

    All tariffs 7.86%

  • © Eskom April 2016 Page 6

    It is important to note that due to changes in the way a customer uses electricity (load profile

    and volume variances) from one year to the other, customers may perceive a variance from the