Category Archives: Tariff and Revenue Impacts
Tools to help municipalities to develop SSEG tariffs, and assess their municipal revenue impact and customer business case impact.
Asset Costing Tool
This tool assists municipalities calculate the total cost of a network upgrade for the purpose of integrating new generators into the network.
Calculating Fair Use-of-System Charges for Wheeling
As renewable energy costs decline and companies strive to decarbonise their power supply, there is a growing call for municipalities to facilitate wheeling of electricity across their distribution networks. This paper explores how municipalities can calculate use-of-system charges for providing access to their networks for wheeling (Dippenaar et al, 2022).
Avoided Costs Calculator Tool
This spreadsheet assists municipalities determine their avoided purchase costs when an embedded generator exports electricity into the municipality’s distribution grid (SEA, 2022).
How to undertake a simplified municipal cost of supply study
This paper provides a practical step-by-step guide to performing a COS study, using the National Energy Regulator of South Africa (NERSA)-endorsed simplified COS tool. The methodology described is based on NERSA’s COS Framework and draws on the NRS 058 where needed. The input data is kept as simple as reasonably possible, and assumptions are explicitly described. These assumptions are the crux of where COS approaches differ vastly, and this paper brings these assumptions to light for others to replicate and build on. (SEA & NERSA, 2021)
System Cost Analysis of Embedded Generation vs Utility-Scale Solar PV
This paper analysis the impact of small-scale embedded generation (SSEG) on the cost of running South Africa’s power system. It investigates whether utility-scale solar PV is cheaper than embedded generation. SSEG reduces overall system costs by reducing electricity losses and resulting fuel expenditure, and, in instances where peak demand is reduced, by reducing capital expenditure on network upgrades and peaking power plants. However, the upfront capital cost of utility-scale solar PV is lower (due to economies of scale) and usually has a higher capacity factor (due to optimum location and orientation, and the use of trackers) when compared to SSEG. This paper quantifies the tradeoffs associated with installing SSEG in various sectors in South Africa compared to installing the same amount of utility-scale PV. A comprehensive full-system model was built to answer this question. (SEA, 2021)
NERSA Tariff Database
This is an Excel database of all 6000+ NERSA approved municipal electricity tariffs for the year 2019/2020.
NERSA Cost of Supply Framework
NERSA developed the Cost of Supply (COS) Framework for licensed electricity distributors (‘licensees’) in South Africa. The framework will be used as a guideline to licensees when developing their COS studies.
NRS 058: Cost of Supply Methodology
The NRS 058 is a draft Cost of Supply methodology for application in the electricity distribution industry. The NRS 058 provides a deeper level of detail to NERSA’s Cost of Supply Framework, and the two documents can therefore be used in conjunction.
The Impact of Small Scale Embedded Generation on Municipal Revenue
This paper which was presented at the AMEU Conference 2019 explores the impact of some of the approved municipal SSEG tariffs on municipal revenue and customer ‘business case’ and outlines key tariff elements to balance access and cost recovery, until such time as detailed costing studies provide specific tariff building blocks (SEA, 2019).
Municipal Tariff Guideline Increase, Benchmarks and Proposed Timelines for Municipal Tariff Approval Process for the 2019/20 Financial Year
This NERSA Consultation Paper proposes a municipal tariff increase guideline for the 2019/20 financial year. Increases are linked to Eskom’s approved bulk price increase of electricity to municipalities and the increase on the municipalities’ cost structures (NERSA, 2019).