The National Energy Regulator of South Africa (Nersa) has published the draft market inquiry report on the impact of fixed charges levied by electricity distributors and State-owned entity Eskom’s unbundled generation capacity charge, legacy charge and variable energy charge for stakeholder input and comment.
The draft findings indicate that, although the movement towards more cost-reflective tariffs has an important regulatory rationale, the impacts of tariff restructuring differ across customer categories depending on consumption patterns, load factors, operational requirements and the ability to respond to tariff signals, Nersa says in a statement.
The draft report highlights, among other matters, the impact of time-of-use tariff restructuring on certain customer categories, including agricultural customers whose consumption patterns are often influenced by production cycles and operational requirements, limiting their ability to shift electricity use.
The report further considers the implications of tariff design for South Africa’s evolving electricity market, including the need for transparent cost allocation, efficient competition and a regulatory framework that supports long-term sustainability and consumer protection.
