Peak pricing pilot promising - Eskom
Fin24

Peak pricing pilot promising - Eskom

2015-01-28 06:00

Johannesburg - Early results from a pilot project, which charges customers higher rates for power on selected peak demand days, are "very promising", Eskom says.

"The critical peak day pricing is a pricing option Eskom is currently piloting with customers who have opted into the pilot," Eskom's media desk said.

The pilot project began in October 2013 and would run until October this year.

"How it works is customers are informed a day ahead of the critical peak day and they decide whether to reduce consumption or to pay the higher price."

The pilot project limits the number of critical peak days to 17 days per year.

READ: Power cuts to bolster supply – Eskom CEO

"The customers on the pilot are customers that have time-of-use metering, which means that it cannot be offered at this stage to residential customers."

The initial results indicated that customers were, on average, reducing consumption by a quarter on the critical peak days.

"At this stage the tariff is only available to the pilot customers... and Eskom will, once the results of the pilot are completed, make a decision as to whether to make this a standard offer to customers."

In recent weeks Eskom has struggled to keep the lights on, with equipment failures, maintenance backlogs, and financial woes.

Eskom began with stage one rotational power cuts on Tuesday morning, but later escalated to stage two.

Stage one allows for up to 1 000MW of the national load to be cut, stage two for up to 2 000MW, and stage three for up to 4 000MW.

On December 5, Eskom implemented stage three load-shedding.

Eskom has repeatedly warned that the power system would remain "extremely constrained" for the rest of the summer.

READ: Power supply tight for rest of summer

It has warned in previous years that winter is an energy-intensive time requiring power saving.


Comments
  • Missionman - 2015-01-28 06:26

    If this is the summer problems what is going too happen in winter...? A fixed load shedding plan should be implemented so Eskom can get its house in order and do their maintenance now and so that the public at large know where they stand. We can all then plan accordingly....

      Paul Lessing - 2015-01-28 07:35

      Eskom, You dont even read the normal meters installed! Always thieving away on an "Average" reading So even if you roll this out to the suburbs, who is then going to read them? and what of the people on Prepaid? Do me a favor and start by looking at all the municipalities that are late or behind on their payments, all the government departments that are late or behind on their payments but also all the illegal squatters that just has never paid, and then come back and talk some more BS. Maybe we will believe you then.

      Made Inthe South - 2015-01-28 07:35

      The reality is that as long as Zuma783 and the ZANC is there,you ,the taxpayer will be Speared.ZANC made money out of the building of Medupi and Kusile,because their investment arm Chancellor House owned Hitachi Power Africa that had the R38 Billion contract for the boilers.That projects are now late because of strikes and faulty welding to the boilers,which had to be rectified by overseas welders. Now they will use this crisis,ZANC created,to justify the building of Russian nuclear reactors.So Chancellor House and the cadres can get tenders again.ZANC keep on winning.And if you followed the news,the Guptas are getting an uranium mine off the ground,in anticipation of the nuclear build

      Clive Pops - 2015-01-28 08:17

      Is this only for Eskom customers? Most of us get our electricity from the municipalities, and their billing is already beyond their capabilities.

      Leigh-Rose Jenkins - 2015-01-28 08:40

      Okay, so during "peak demand periods" electricity users have the option to pay more or not use any electricity. Surely that, all by itself, is COMPLETELY unconstitutional. Especially considering the fact that we have a constitution that believes everyone should have basic services free of charge. Or did the "free electricity, free housing, free water" fall away completely when the ANC won?

      Pierre Van Zyl - 2015-01-28 08:41

      How about just getting people to pay the normal rate where 90% arent paying at the moment eg. Soweto

      Francisque Granger - 2015-01-28 11:20

      Whaaaaat??? I had to pinch myself when I read this. 1. 'Peak Demand' charges is an age old concept - it existed in SA under Apartheid. In fact it may even have been used in the early days of the ANc regime - BEFORE THE ANC STOPPED IT (and then they blame Jan van Riebeeck). 2. As noted before - lets rather focus on those THAT DO NOT PAY AT ALL!.

      Chrono Man - 2015-01-28 16:24

      The cheek is hard to comprehend. Eskom does everything in its power to reduce the use of electricity, the only product that earns it an income. It even installs more economical lights free of charge in our homes and subsidizes the use of solar systems. We try to further assist by switching off appliances that are idle. Reschedule the work of our swimming pool pumps etc. The effect is that we use less electricity and we pay Eskom less! So, Eskom has to recuperate losses and hikes tariffs. They get more for providing us, their customers, with less. Only a company with a monopoly can be that arrogant.

  • David Khumalo - 2015-01-28 06:27

    what about the millions of illegal connections in town ships, they don't pay anything, now we that pay our bills in the first place now we must pay even more, this is ridiculous. The ANC criminals promised everything for votes so switch off Nkandla and charge all ANC entities 1000% more, I didn't promise freeloaders anything.

      Jaun Meyer038 - 2015-01-28 14:06

      Hard working people are only home at peak times to do what they don't have time for in the daytime. It feels like one is being punished for being a successful, honest contributor to the country. It breeds a culture where people start wondering: why should I pay? For everyone? And they get it for free?

  • Sage Wiseman - 2015-01-28 06:32

    With the whole of Soweto paying NOTHING for the electricity they STEAL is it reasonable to screw the rest of SA

  • Brian Heunis - 2015-01-28 06:34

    Who in his / her right mind would volunteer to be part of this pilot period and get charged more?

      Jaco De Witt - 2015-01-28 06:35

      My thoughts exactly

      Tanya Dixon - 2015-01-28 07:27

      Wtf they want us to use half the electricity and pay double?

  • Roy Martine - 2015-01-28 06:36

    Have they thought of just charging all the users and getting rid of the illegal connections?

  • Leon Coetzee - 2015-01-28 06:37

    Yes ... right now we dont have the option to choose ... we sinply pay the higher rate and never have electricity anyway ...

  • Roy Martine - 2015-01-28 06:37

    Can Es"Con" confirm whether they are load shedding in the townships? Rumour has it that they do not?

  • Bruce Meaker - 2015-01-28 06:42

    They've had this in the rest of the world for 20 years, why did it take so long to implement it here?

  • Akhenaten C.T. - 2015-01-28 06:48

    No, stick to load shedding but only switch off those municipalities who are not paying for every time your supply is low.

  • Asif Khan - 2015-01-28 06:53

    Too many corporates n malls that keep their offices n parking lots light up after working hours n dnt have sensor enabled lights.

  • Alowis Taurai Musodza - 2015-01-28 06:55

    So now that u messed up the entire grid u want to punish people?

      Tanya Dixon - 2015-01-28 07:28

      Yes, how dare you use their product? Why not just make it a crime while they at it?

  • John Stoltz - 2015-01-28 06:58

    Stop all these time wasting idiotic ideas and privatize!! You ANC deployed cadres are just not competent enough, and you might just as well admit, and get the power supply back on track with educated, qualified and competent people!! (Put your pride in your pocket for once and do the whole of the RSA a favour)

  • Brett Levitas - 2015-01-28 06:59

    Clever move by Eskom. After all the scare tactics this is the perfect way to extort more of the tax payers rands...

  • Bvg Vsion - 2015-01-28 07:10

    Wake up Eskom, until executives and senior management stop giving themselves bonuses, the company operates as a functioning utility and electricity is focused on our country and not sold outside our boarders, Zimbabwe has not paid their bill, you won't get it right. Public opinion shows that there is no confidence in Eskom and actually it needs to be manage by a reputable operate not the board that is so idiotic, they say their is no crisis one day and then level 2 and 3 load shedding is imposed. Please explain Eskom?

  • Berkold Enderstend - 2015-01-28 07:11

    MAD!!! Nowhere else in the world is a power utility allowed to RAPE the customers as is the case in South Africa. In this case the ONLY POWER UTILITY. However, the so-called *pilot project* is a fake - just like the E-Tolls fiasco!! Bad information given to idiots by thieves. NO HIGHER PRICES OR ILLEGAL SCHEMES FROM ESKOM!!

  • Bvg Vsion - 2015-01-28 07:12

    Hear hear, charge more for services you cannot provide properly, very smart Eskom, which executive gets the money?

  • MarkH - 2015-01-28 07:19

    Isn't that just typical of Eskom, and this government? Charge more for something you can't deliver, plead poverty and then just switch off when it suits you anyway. And you're surprised we have no confidence in you? Yeah, right!

  • John Darnielle - 2015-01-28 07:21

    Eskom couldn't pilot a model airplane properly. They'll probably test this in Constantia and consider it a success because people paid their electricity bill, then test it somewhere where people can't afford the higher tariffs and consider it a success because the area used less power.

  • Bongani Zebenkulu - 2015-01-28 07:37

    Holy sh t. How clever can they get.

  • Kallie Marie - 2015-01-28 07:45

    Now it all makes sense ... force load shedding to hike prices . Invested in generating my own electricity and Eskom can keep theirs

  • Mark Austin - 2015-01-28 07:45

    Eskom - you ridiculous bunch of idiots, people are battling as it is, dont make your incompetence our problem. How many times do you want to increase the rates, sort your company out and implement the correct and most cost effective solutions on a long term strategy, and short term. you bunch of fools. So Typical of a 3rd world country and the government.

  • Braam Compion - 2015-01-28 07:52

    Blackmail the consumers...thats right.

  • Braam Compion - 2015-01-28 07:55

    Cut power supply to your voters that does not pay like you do when a taxpayers does not pay their accounts.......but will never happen. Suck the 3.5 million tqx payers dry untill there are none left...then go ask china and russia for handouts like the rest of africa

  • Pedro Schoultz - 2015-01-28 08:13

    F@#k them.....

  • Sandra Brown - 2015-01-28 08:14

    It's scary just how far eskom is behind the times. Ever heard of smart meters eskom? Allow me to feed back onto thw grid when I have too much solar power? Ever heard of reducing prices at off-peak times to encourage use of stored heat etc? Useless bunch of idiots

  • John Kahn - 2015-01-28 08:28

    After 90 is monopolistic business, Eskom still piloting how to build a power station - look at Modupi

  • Michael Lewis - 2015-01-28 08:33

    How about, instead of screwing around with trying to milk us for more money, they get their supply problems sorted out first.

  • Juan Jonck - 2015-01-28 08:43

    And why do we have to pay an availability charge if the power is not available... They are probably saving for there Xmas bonuses. Absolutely pathic. What don't you fix the power plant in KZN that you are stripping for spares - they can supply an extra 500MW to the grid.

  • Selena Gibson - 2015-01-28 08:44

    From Uber to Eskom - surge pricing takes on a new meaning.

  • Avron Chernotsky - 2015-01-28 09:11

    I don't believe a single work any Eksdom says. It is all a bunch of lies designed to fool the gullible paying South African into accepting the fact that we are going to be getting new Russian nuclear reactors.

  • David Tseng - 2015-01-28 09:14

    Why don't you go into the townships and try implement this peak hour crap?

  • Irfaan Hilberg - 2015-01-28 09:46

    The authorities must impound eskom....its price surge!! If they can do it to uber then why not to eskom?

  • louis.elst - 2015-01-28 09:51

    And the good paying users are slammed again , for a service that should be affordable to all and not only yo the rich and businesses Need to look at all the non payers and start collecting outstanding money to help Eskom repair the run down generators

  • louis.elst - 2015-01-28 09:51

    And the good paying users are slammed again , for a service that should be affordable to all and not only yo the rich and businesses Need to look at all the non payers and start collecting outstanding money to help Eskom repair the run down generators

  • Jacqui Daane Van Rensburg - 2015-01-28 10:21

    Maybe you could first make sure that everyone pays his/her bill before introducing something new to cover your mistakes.

  • Louis van Zyl - 2015-01-28 10:38

    Why not start collecting from all the free booters 1st. Or are you scared of their reactions?

  • Luzaan Henn - 2015-01-28 12:20

    Ignoring the fact that electricity is being stolen in rural areas(millions of lines being dragged from a main source), they don't pay anything. Now the middle an upper class needs to pay(not just money wise)and be dragged down under with them. There is no control. I think it's pathetic....

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