Explainer: Eskom looking to introduce "Critical Peak" billing system

Explainer: Eskom looking to introduce "Critical Peak" billing system

- Eskom is reportedly considering introducing a 'critical peak day tariff' to cope with increased demand

- As the power utility struggles to keep the lights on, it hopes to reduce some of the strain

- Briefly.co.za explores how this new tariff would work should it come into play

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Eskom is eyeballing a new 'critical peak day tariff' in a bid to cope with increased power demands.

BusinessTech reports that Eskom had previously approached the National Energy Regulator of SA to have this billing system approved, but it had been rejected.

But the system is back, with the power utility planning to pilot it as a voluntary way for customers to help out when demand is high:

“Critical Peak Day pricing is a tariff option that has been internationally proven to reduce load on specific days when the system is extremely constrained. This is achieved by increasing the electricity price on these system-constrained days (critical peak days) and lowering the prices (compared to the normal tariff) on non-constrained days.”

READ ALSO: Fact Check: Stage 8 load-shedding a possibility for South Africa

Customers would get a heads-up about critical peak days explained the entity:

“The Critical Peak Day tariff option provides customers with the flexibility to partner with Eskom in a win-win situation for both. If customers choose to reduce their electricity consumption on critical peak days, the customers can save on the electricity bill."

The new system would be made available to large consumers and potentially even residential consumers. An estimated 50MW curtailment will hopefully be achieved:

Eskom insists that the new system wouldn't be compulsory with customers given the opportunity to opt-in.

Briefly.co.za reported that the power utility recently denied the imminent implementation of Stage 8 load-shedding.

With the grid under increasing pressure, experts are adamant that the situation will worsen before it improves.

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Source: Briefly.co.za

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