Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Rules

Net-Billing Rules

6. Applicable Tariff Charges for Prosumers

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6.1 In line with NERSA guidelines, Distributors must undertake a cost of supply study to assist in allocating costs to electricity services. Unbundled, cost-reflective tariffs are needed to develop tariffs that reflect variable cost components (e.g. in relation to the procurement of energy) and fixed components.

 

6.2 After allowing the Prosumer to connect to the distribution power system, the distributor shall set a tariff based on the following elements:
(i) Variable charges (c/kWh)
-Energy and network charges for imported energy (import tariff) to recover energy costs (costs of energy purchases) and network costs associated with the demand or usage of the network on a time-of-use rate as guided by the NERSA Distribution Tariff Code.
-Energy charges for exported energy (export tariff) to credit the Prosumer must be valued at the avoided energy cost of the distributor and on a time-of-use rate.
(ii) Fixed charges (R/day or R/kVA – based on Notified Maximum Demand (NMD), as guided by the NERSA Distribution Tariff Code, such as:
-network charges to recover network capital, maintenance, returns and fixed operating costs based on NMD;
-service and administration charges to recover the retail costs associated with billing, meter reading and Prosumer service associated with the consumption of energy.
(iii) Other charges, as guided by the NERSA Distribution Tariff Code, such as:
-one-time charges to the Prosumer in the form of connection charges to recover metering and network-related costs; and
-charges related to the contribution to subsidies and other levies (could be fixed or variable).