Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Viu takes on social media giants with new ‘shorts’ feature

      Viu takes on social media giants with new ‘shorts’ feature

      13 January 2026
      Tech execs join SEZ advisory board - Parks Tau

      Tech execs join SEZ advisory board

      13 January 2026
      Eskom smart meter roll-out is badly behind

      Eskom smart meter roll-out is badly behind

      13 January 2026
      Google wins big as Apple rewires Siri with Gemini

      Google wins big as Apple rewires Siri with Gemini

      13 January 2026
      Alphabet tops $4-trillion valuation

      Alphabet tops $4-trillion valuation

      13 January 2026
    • World
      Work begins on what will be Africa's biggest airport

      Work begins on what will be Africa’s biggest airport

      13 January 2026
      India seeks unprecedented access to smartphone software - Narendra Modi

      India seeks unprecedented access to smartphone software

      12 January 2026
      Samsung forecasts record operating profit as AI demand sends memory chip prices sharply higher worldwide - TM Roh

      Samsung cashes in on AI data centre boom as memory prices soar

      8 January 2026
      EU pressure mounts on Musk's X over AI 'undressing' images - Wolfram Weimer

      EU pressure mounts on Musk’s X over AI ‘undressing’ images

      7 January 2026
      Intel launches Panther Lake, its next-gen PC chip

      Intel launches Panther Lake, its next-gen PC chip

      6 January 2026
    • In-depth
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      DStv dodges channel blackout in last-minute deal with Warner Bros

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » Wide implications of contentious new Eskom tariff structure

    Wide implications of contentious new Eskom tariff structure

    By Staff Reporter31 March 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    In January, Eskom filed a contentious tariff proposal with energy regulator Nersa. In it were a number of proposed changes that will have wide ramifications for all users of electricity, even if they are not directly supplied by Eskom.

    Two amendments will see tariff structures change across the country. First, Eskom wants to change the times of its peak and off-peak periods – an hour of peak moves from the morning to the evening. It also wants to remove the incline block tariff structure for residential customers it supplies directly, such as greater Sandton and Soweto.

    Then, it proposes that residential customers who have their own solar or renewable installation and want to have access to the grid will be forced onto a new tariff, called Homeflex. It says this tariff is “mandatory for all customers with grid-tied generation”, whether they are feeding back to the grid or not.

    The major difference between Homeflex and the “standard” Homepower tariff is that the former introduces time-of-use tariffs…

    The major difference between Homeflex and the “standard” Homepower tariff is that the former introduces time-of-use tariffs that have very low off-peak tariffs and very steep peak tariffs.

    Eskom will pay the customer the same rate for any energy sold back to the grid that the tariff charges for consumption at that point in time. For example, it will “pay” the winter daytime rate if a customer is feeding back solar to the grid during daytime in winter.

    For a customer with solar, this effectively means they are not able to offset the sharply higher peak tariff by feeding excess power back to the grid during the day (where there is a much lower off-peak tariff).

    Solar

    Effectively, those with solar systems will be feeding additional power back at 58.46c/kWh but paying R1.46/kWh at night when they need power from the grid.

    For a standard 16kVA single-phase supply (80A), the charges proposed are the following:

    [table id=71 /]

    (The utility also says the tariff “cannot be offered to customers who are on a prepaid smart meter due to current technological constraints”.)

    Quite how the utility aims to implement this across the customers it supplies directly remains an unanswered question and, by definition, not part of the tariff filing.

    Eskom also proposes the unbundling of charges on both Homeflex and Homepower into two separate ones: energy charges and network charges (something done by City Power and many other metros). Customers will therefore pay certain fixed charges regardless of their power consumption.

    The utility proposes a rand-per-day “service and administration charge” for each point of delivery, which will be “payable every month whether any electricity is used or not, based on the applicable daily rate and the number of days in the month”.

    Additionally, it proposes a network demand charge and ancillary service charge “based on the active energy measured at the point of delivery”.

    The proposed additional (unbundled) charges are as follows:

    [table id=72 /]

    For a larger supply the proposed additional charges are higher:

    [table id=73 /]

    In its tariff filing, Eskom says “for the average-consumption customer who converts from the existing Homepower tariff to the Homeflex tariff, the impact of this tariff conversion may be positive or negative (depending on the load profile)”.

    “Customers who respond to the TOU (time of use) signals will experience a positive impact.”

    Elsewhere in the filing, it says “affluent” households on Homepower 3 have an average monthly consumption of 3 404kWh.

    In its application, Eskom says the Homeflex tariff “is a dynamic tariff for the residential urban sector that supports a more optimal operation of the power system”.

    Eskom identified the need for a residential time-of-use tariff to provide the right economic signals that promote economic efficiency…

    It adds: “Eskom identified the need for a residential time-of-use tariff to provide the right economic signals that promote economic efficiency and sustainability for Eskom and the customer long ago.”

    It says the proposed tariff will also help to optmise the system and “protect future revenue”. It says “there is a need to get fair compensation for the use of the grid and to incentivise customers to stay connected to the grid” but that the “current IBT structure does not provide a TOU signal or a signal for net billing; PV (solar photovoltaic), for example, reduces sales, but not peak consumption and peak demand”.

    Nersa was expected to pronounce on the tariffs earlier this month. In theory, these are to be implemented from 1 April for Eskom-direct customers and on 1 July for municipalities that bulk-buy power from the utility.

    • This article was originally published on Moneyweb and is used here with permission


    Eskom Nersa top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMeet the four civilians going into orbit on a SpaceX rocket
    Next Article Huawei ekes out profit rise as revenues fall outside China

    Related Posts

    Eskom smart meter roll-out is badly behind

    Eskom smart meter roll-out is badly behind

    13 January 2026
    Eskom says SA power system strongest in five years

    Eskom says SA power system strongest in five years

    12 January 2026
    Ramokgopa bullish on energy outlook as new projects get green light - Kgosientsho Ramokgopa

    Ramokgopa bullish on energy outlook as new projects get green light

    15 December 2025
    Company News
    Owning the right data is the new competitive moat in AI - CallMiner

    Owning the right data is the new competitive moat in AI

    9 January 2026
    Why trust is the real currency in modern media

    Why trust is the real currency in modern media

    6 January 2026
    Why banks and insurers need a single decisioning brain as pressures collide - SAS

    Why banks and insurers need a single decisioning brain as pressures collide

    29 December 2025
    Opinion
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality - Duncan McLeod

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Viu takes on social media giants with new ‘shorts’ feature

    Viu takes on social media giants with new ‘shorts’ feature

    13 January 2026
    Tech execs join SEZ advisory board - Parks Tau

    Tech execs join SEZ advisory board

    13 January 2026
    Work begins on what will be Africa's biggest airport

    Work begins on what will be Africa’s biggest airport

    13 January 2026
    Eskom smart meter roll-out is badly behind

    Eskom smart meter roll-out is badly behind

    13 January 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}