It looks like South Africans will either sigh a breath of relief or have to dig a little bit deeper from 1 April 2023 when Eskom’s new proposal is set to be approved by the National Energy Regulator of South Africa .Eskom submitted its new tariff plan in a proposal to the National Energy Regulator of South Africa on Friday, 5 August 2022.
The problem with the current method is that a reduction in electricity sales reduces the revenue but not the costs to generate the power which still have to be covered by Eskom. The power utility is proposing that customers pay for using the grid and its generation capacity. The Inclining-Block Tariff is the fee that customers pay when their electricity consumption is above a certain threshold. Eskom has now found that this tariff encourages customers to seek alternative power solutions which leads to Eskom losing revenue as a result.
Eskom said that consumers using Homeflex will also pay a network capacity charge aligned to the size of the connection as well as an administrative charge that applies whether electricity is used or not. This tariff is more ‘cost-reflective’ in its structure, according to the power utility.Residential customers will be credited for feeding power back to the grid:
Homeflex tariff will be mandatory for those using alternative power supplies like solar PV rooftop installations.
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