South Africa’s utility service provider Eskom has submitted a tariff restructuring application to the National Energy Regulator of South Africa (NERSA), seeking an overhaul of the prevailing retail tariff structure.

The new proposals include unbundling the energy charges into fixed generation capacity charges, variable time-of-use pricing, and correct separation and structure of network charges.

The application was submitted on August 5, with Eskom requesting its implementation on April 1, 2023. Eskom last revised its tariff structures in 2012.

“To make network charges more reflective of the cost drivers, there will be a gradual increase in the fixed network charge. For this submission, the fixed network charge increased to 60% and the variable network charge reduced to 40%,” the application document said.

Existing tariff structures are “outdated” and need to be modernised to reflect the changing electricity environment, Eskom Group Executive for Distribution, Monde Bala, said in a statement.

He added that crucial decisions in this regard are needed to protect the electricity industry.

The regulator will decide on Eskom’s retail tariff plan proposals following their normal public consultation process.

(Editing by Brinda Darasha;