New approach to pricing for residential customers

Eskom has been following a particular approach in respect of pricing for residential customers in terms of the electrification programme in support of the RDP. The subsidies involved have to be recovered from customers who are not subsidised. The impact of these subsidies are reaching alarming levels. For Eskom not to compromise on two of its main contributions to the RDP namely: (a) low electricity costs for customers in South Africa in general, and (b) electrification of 300000 residential households per year, it is essential that a pricing approach be put in place that will ensure that electrification can be done and that subsidies can be contained. The author discusses the supply options available and the basis for parity between customers