Guiding consumers since 2009

Eskom critical peak day pricing pilot project

By Staff Writer
Eskom has revealed that a 'peak day' pilot project that it's been running since October 2013 has produced good results and made participating households use less electricity. Participating households of the pilot have been 'encouraged' to cut electricity consumption during peak periods by being given a choice to pay extra or reduce consumption.
"At this stage the tariff is only available to the pilot customers and Eskom will, once the results of the pilot are completed, make a decision as to whether to make this a standard offer to customers. The initial results of the pilot are very promising where customers are showing on average a 25% reduction in consumption on the critical peak day," said an Eskom spokesperson.
According to Eskom, households that do reduce their power consumption during these critical peak days have benefited from a 95% reduction in their energy charges for the year as they have avoided the higher tariff during the critical peak days.
The project is set to run until October this year (2015). This pilot is only available for time-of-use metering households, meaning that residential customers cannot participate at this stage of the project.
Reducing costs
It's no surprise that the government run power utility has had to find and test new ways to reduce power consumption. Eskom has made the news recently due to its financial problems, which may see the power utility running out of funds for its diesel generators by mid-February. For more information click here.
Commenting on the peak day pilot project, a spokesperson for Eskom told Justmoney: "Customers are informed a day ahead of the critical peak day and they decide whether to reduce consumption or to pay the higher price. Critical peak day pricing is a dynamic pricing option that is used throughout the world as a tool for customers to respond to system constraints and to save money if they reduce electricity usage."
Households that are taking part in the pilot programme are notified 24 hours before a critical peak day via email and SMS. The higher tariff will be implemented between six o'clock in the morning and ten o'clock at night. During these days it is very expensive for the power utility to run for the 16 peak hours and the remaining standard hours of the day.
"The design of the pilot limits the number of critical peak to 17 days per annum [meaning that] Eskom cannot call every day as a critical peak day," explained the spokesperson.
Customers will have to wait until after October to find out whether this project will be implemented as a permanent offering to customers, and whether or not residential customers will be able to participate.
For more information on the critical peak day tariffs visit the Eskom website.

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.


Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide