MAYOR’S NEWSLETTER FOR GEORGE HERALD OF 6 June 2022
George completed an Electricity Cost of Supply and Tariff study during 2019/20, being the first such study approved by the National Energy Regulator of South Africa (NERSA).
This study highlighted the need for more cost reflective electricity tariffs to reflect the different types of electricity supply cost: fixed customer service costs, network costs and energy costs. These tariffs must ensure that all consumers pay their fair share of costs and to ensure that they manage their loads to minimise their own costs and that of the municipality.
With the extensive expected growth for George, it is critical that electricity capacity must be utilised to its fullest by having consumers limit the maximum demand they place on the network. The new electricity tariffs will comprise:
- A tariff for low usage domestic consumers, using less than 700 kWh/m, without any fixed charges but limited to 20 Amp capacity.
- Consumers who need more than 20 Amp capacity will pay a basic monthly charge, a monthly capacity charge based on the consumers’ capacity and an energy charge. Consumers are reminded to select their capacity, in absence of which the Municipality will select a capacity considered appropriate based on the historical consumption.
- The Municipality supports the implementation of renewable energy by consumers. Consumers who intend to install such power at their premises will be charged a basic and capacity charge to cover customer service and network costs as well as Time of Use (TOU) energy charges.
- Consumers need to apply and register with George as required by NERSA. This process includes paying for a 4 quadrant, 4 wire meter which will enable the measurement of energy on a TOU basis and allow for the measurement of energy injected into the George network which will be credited to the consumer’s energy account at 90% of Eskom energy charges.
- Bulk consumers (>100 kVA) will in future all be charged on a TOU basis and pay an access charge based on the consumer’s maximum capacity / demand with tariffs as supplied at LV (400V), MV (11 000V) and at MV from the HV (66 000V) substation.
These tariffs will allow consumers to save on their electricity costs by shifting loads from more expensive to cheaper times of the day. It will however provide an incentive to limit the maximum demand it places on the network, not just during every month, but year on year.
Through these new tariffs it is believed that load shifting will take place which will extend the life of the network and reduce Eskom purchase costs to the benefit of all George residents.
Consumers are urged to visit the George Municipality Website to obtain more details. https://www.george.gov.za/electro-technical/electrical-tariff-amendments-2022/