Eskom’s New HomeFlex Tariff: What you need to know about the Tariff Time Of Use Tariff
Eskom’s New HomeFlex Tariff is set to take place in 2023. The new Time of use tariff will make considerable changes to the way in which electricity is charged and consumed.
According to Eskom’s reports, the new HomeFlex tariff will be, “...more cost-reflective in structure and adaptable to evolving customer needs, changes in technology, and the changing energy environment, thereby providing a benefit to both the customers and Eskom”.
The following are the primary goals of the Home Flex Tariff, according to Eskom:
- To more properly reflect unbundled costs;
- To take into account the shifting environment of electricity supply and demand;
- Alignment of retail tariffs and wholesale purchasing;
- Reduce the risk of volume and revenue.
What is Eskom’s New HomeFlex Tariff?
The proposed new Time Of Use wholesale purchase tariff ratios, along with cost-reflective network, ancillary service, and service/administration costs for the residential customer category, serve as the foundation for the Homeflex tariff's design.
To prevent both over and under-recovery of revenue, it is then scaled to be revenue-neutral to the current home tariff (Home power), according to Eskom.
With this new price, customers will be responsible for the cost of a postpaid smart meter.
This tariff, which is simply a proposed tariff and has not yet been authorised by NERSA, demonstrates the directions in which Eskom is moving.
How will the new Time of Use Tariff Work?
The Homeflex tariff consists of unbundled energy and wires charges, namely:
- The Homeflex tariff includes the following separate energy and wires charges: The new tariff classifications are Standard, Off-Peak, and Peak. Additionally, the prices will be divided into categories based on the season.
- a daily network capacity fee dependent on the supply's NMD (size);
- a charge per kWh (c/kWh) for network demand depending on the active energy (active energy measured at the point of delivery (POD));
- an auxiliary service fee of c/kWh based on the active energy determined at the POD;
- an R/day service and administration fee for each POD, which fee is based on the appropriate daily rate and the number of days in the month and is due each month whether or not power is utilized;
Who will Eskom’s New HomeFlex Tariff Affect?
Eskom’s New HomeFlex Tariff will be mandatory for all customers with grid-tied solar PV systems. For all other residential urban customers, converting to the Homeflex tariff will be a choice.
Eskom’s New HomeFlex Tariff also introduces net billing, which will allow self-generating customers to benefit from exporting their excess power to the grid.
How can You benefit from the new Time of Use Tariff?
The Homeflex Tariff will have a much higher cost during peak “High Demand” seasons and the cost of electricity therefore will be much more expensive.
However, by employing a load-shifting strategy, you will be able to save money even during the high-demand seasons.
What is Load Shifting?
You can save yourself from the excessive tariff increase by simply installing timers on your big energy users, like your geyser and battery backup, to run during off-peak times. The example above shows how to load shifting can save you money despite the new Homeflex tariff.
For more advice on how to save money with load shifting and other strategies, contact InPower Specialist today
