select
|

Time Of Use tariffs will be implemented in Johannesburg

Johannesburg residents will be facing an expensive winter if they don’t decrease their electricity usage. 

Under the new Time Of Use (TOU) tariffs approved by the national energy regulator and announced by City Power this week, the cost of power will be two-and-a-half times more in peak period in winter than it will be during peak in summer.

Consumers could curtail their usage by shifting to gas for cooking and heating, introducing solar power, and installing timers to prevent geyser operation during peak periods.

According to City Power, electric water heating and cooking are major contributors to the evening peak demand for power. Consumers could realise greater savings by reducing power consumption ahead of winter, either by using energy- saving appliances or developing greener practices at home.

A typical household will pay up to R262.09 for peak-period consumption in winter under TOU, while it will cost about R109.89 during the same period in summer, the utility said. The residential TOU tariff will initially be introduced to households that are now on City Power’s smart metering system. There are more than 50 000 smart meters installed in households so far.

“Electricity is going to be more expensive in winter with the new tariffs, unless people convert to using gas and other alternatives,” said Paul Vermeulen, City Power’s manager of demand and supply side management. “The whole idea is not for people to change to TOU and do nothing about it. The message is for the consumers to also change their habits. If you don’t, then there is no benefit. This very same system also applies to large power users.”

Vermeulen said this was not a way to make money for City Power because the utility wanted to reduce its purchases of electricity from Eskom during winter periods.

Sicelo Xulu, City Power managing director, said the introduction of the TOU tariff underlined the utility’s commitment to help augment the security of supply and provide a means by which much-needed savings to consumers can be realised. “City Power’s introduction of a time-based tariff system is informed by its commitment to provide services to its hard-pressed consumers by incentivising and rewarding them for changing their usage patterns, while at the same time ensuring security of supply by lessening the pressure on the grid,” he said.

“Load shedding is a fact of life that we have to contend with for the foreseeable future and we need to explore any conceivable solutions to ensure that we keep the lights on.”

Eskom is expected to increase its tariffs by over 8 percent in the next four years in order to fund its infrastructure backlog.

“By opting for alternative energy solutions such as gas and solar, and changing their usage patterns, consumers will be largely insulating themselves from the effects of the increases and the threat of load shedding,” Xulu added.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK