{"id":571908,"date":"2024-11-24T07:00:00","date_gmt":"2024-11-24T05:00:00","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=571908"},"modified":"2024-11-24T06:48:57","modified_gmt":"2024-11-24T04:48:57","slug":"eskom-plan-for-people-with-solar-to-pay-more","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/energy\/571908-eskom-plan-for-people-with-solar-to-pay-more.html","title":{"rendered":"Eskom plan for people with solar to pay more"},"content":{"rendered":"\n<p>Eskom wants South African households and companies trying to reduce their reliance on its supply to pay more for the electricity they use from the utility.&nbsp;<\/p>\n\n\n\n<p>The power utility plans to do this by increasing the fixed capacity charges, which would disproportionately affect people and companies using less Eskom electricity.&nbsp;<\/p>\n\n\n\n<p>As South African households and companies reduce their reliance on Eskom through the installation of rooftop solar and other alternative energy sources, the utility risks entering a vicious cycle.&nbsp;<\/p>\n\n\n\n<p>Some of Eskom\u2019s largest customers, such as mining companies, are cutting their usage of the electricity company, resulting in less revenue for the utility.&nbsp;<\/p>\n\n\n\n<p>Therefore, Eskom risks losing its best customers who can afford to install alternative energy sources and being left with those who do not pay for its services.&nbsp;<\/p>\n\n\n\n<p>To mitigate against this, Eskom presented its Retail Tariff Plan in 2021 to the National Energy Regulator of South Africa (Nersa) to change the structure of tariffs.&nbsp;<\/p>\n\n\n\n<p>Simply put, Eskom wants to significantly increase network costs, which include transmission, distribution, and transformer costs.<\/p>\n\n\n\n<p>These network costs are currently recovered through variable (c\/kWh) and fixed (R\/kVA and R\/Customer) charges.<\/p>\n\n\n\n<p>Eskom wants to move to a tariff structure with significant fixed daily network charges independent of usage.<\/p>\n\n\n\n<p>This means South African households and businesses would have to pay a much higher fixed charge, regardless of whether they use electricity.<\/p>\n\n\n\n<p>This would lead to those with solar panels paying far more than before, as they would need to pay daily fixed costs to Eskom to be connected to the grid.<\/p>\n\n\n\n<p>Eskom CFO Calib Cassim recently explained why the utility thinks this is necessary in response to recent reports that Midvaal municipality in Gauteng plans to dump the utility\u2019s services.&nbsp;<\/p>\n\n\n\n<p>Cassim said it is vital to understand when a company, household, or municipality dumps Eskom if it plans to do so all the time or partially.&nbsp;<\/p>\n\n\n\n<p>\u201cThe only point we are making with regard to our Retail Tariff Plan is that when a customer says they are dumping Eskom, it must be 24\/7\/365,\u201d Cassim told&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=MF1YjJ1CX7Q\" target=\"_blank\" rel=\"noreferrer noopener\">Newzroom Afrika<\/a>.&nbsp;<\/p>\n\n\n\n<p>\u201cIf you are going to use Eskom on a partial basis and you have to come back when the sun is down, there needs to be a cost and a charge for you to tap into Eskom as a battery.\u201d&nbsp;<\/p>\n\n\n\n<p>\u201cOtherwise, what will happen is that the consumers using the grid all the time are going to pay for the entire infrastructure costs of Eskom.\u201d&nbsp;<\/p>\n\n\n\n<p>\u201cThen those that come on to the grid on a partial basis will get a free benefit from the infrastructure investment funded by other customers.\u201d&nbsp;<\/p>\n\n\n\n<p>\u201cIf you are going to use us as a battery, then you will need to pay for that.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/10\/Calib-Cassim.jpg\" alt=\"\" class=\"wp-image-465701\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/10\/Calib-Cassim.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/10\/Calib-Cassim-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/10\/Calib-Cassim-800x533.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/10\/Calib-Cassim-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Calib Cassim, Eskom chief financial officer<\/figcaption><\/figure>\n\n\n\n<p>South African households are increasingly looking into alternatives to Eskom\u2019s supply to avoid significant price increases.&nbsp;<\/p>\n\n\n\n<p>On 23 September 2024, the National Energy Regulator of South Africa (Nersa) released Eskom\u2019s multi-year price determination (MYPD).<\/p>\n\n\n\n<p>Eskom is requesting total revenues of R446 billion for the 2026 financial year, R495 billion for 2027, and R537 billion for 2028.<\/p>\n\n\n\n<p>The proposed average price hikes for Eskom\u2019s direct customers are 36.15% for the period from 1 April 2025 to 31 March 2026.<\/p>\n\n\n\n<p>For the subsequent years, the utility is seeking increases of 11.81% from 1 April 2026 to 31 March 2027 and 9.10% from 1 April 2027 to 31 March 2028.<\/p>\n\n\n\n<p>\u201cThis application allows for an improvement in the financial sustainability of Eskom through the migration to cost-reflective prices,\u201d Eskom said.<\/p>\n\n\n\n<p>Since this application was made public, customers and government members have expressed significant opposition.&nbsp;<\/p>\n\n\n\n<p>Electricity Minister Kgosientsho Ramokgopa has said the government will intervene to provide a measure of relief from these increases.&nbsp;<\/p>\n\n\n\n<p>\u201cOur electricity pricing plan needs to kick in, and that is the primary preoccupation of the ministry now, working with Eskom\u2019s Distribution division and municipalities,\u201d he said.&nbsp;<\/p>\n\n\n\n<p>Ramokgopa warned that these price increases are at risk of spiralling out of control and that the government\u2019s policy of providing free basic electricity is not working.&nbsp;<\/p>\n\n\n\n<p>The head of the ANC\u2019s economic transformation subcommittee and Minister of Human Settlements, Mammoloko Kubayi, has also made it clear that these increases are unsustainable.&nbsp;<\/p>\n\n\n\n<p>\u201cAs we continue pushing forward measures to reduce electricity costs, our commitment to protecting households from unsustainable tariffs is unwavering,\u201d Kubayi said.&nbsp;<\/p>\n\n\n\n<p>\u201cWe are working tirelessly to stabilise the electricity sector and ensure subsidies and protections are in place for those most vulnerable.\u201d<\/p>\n\n\n\n<p>\u201cElectricity must serve as a public good and not an unaffordable luxury. We aim to ensure a stable and reliable energy supply that is affordable for all.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>This article was first published by <a href=\"https:\/\/dailyinvestor.com\/energy\/69931\/eskom-wants-south-africans-with-solar-to-pay-more\/\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Investor<\/a> and is reproduced with permission.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eskom is proposing radical electricity pricing changes to significantly increase the monthly bill for South African households with solar power.<\/p>\n","protected":false},"author":341119,"featured_media":528231,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27995,80335],"tags":[57354,181],"class_list":["post-571908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-investing","tag-calib-cassim","tag-eskom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/571908"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341119"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=571908"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/571908\/revisions"}],"predecessor-version":[{"id":571909,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/571908\/revisions\/571909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/528231"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=571908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=571908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=571908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}