ELECTRICITY TARIFFS 2013/2014
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1 ELECTRICITY TARIFFS 2013/2014 Presented by Cobus Kritzinger Leon Swanepoel Deputy Director Finance Head Electro Technical Services
2 CONTENTS BACKROUND ELECTRICITY SALES BULK PURCHASES SALARY INCREASE TARIFF INCREASE COMPARISON ELECTRICITY SURPLUSES TARIFF INCREASE APPROVAL REQUESTED
3 BACKROUND Witzenberg Municipality includes the towns and rural areas of: Ceres, Tulbagh, Wolseley, Prince Alfred s Hamlet, Op-die-Berg, Municipality Municipality Municipality Eskom Eskom 3
4 ELECTRICITY SALES Number of consumers Actual Budget Estimate Consumer classification 2011/ / /14 Free Basic Electricity Domestic (pre-paid) Domestic (conventional) Agriculture Manufacturing / Industrial Commercial Street lighting Sold to other departments Total Sale of Electricity
5 ELECTRICITY SALES Sales (MWh) Actual Budget Estimate Consumer classification 2011/ / /14 Free Basic Electricity Domestic (pre-paid) Domestic (conventional) Agriculture Manufacturing / Industrial Commercial Street lighting Sold to other departments Total Sale of Electricity
6 ELECTRICITY SALES Average Energy Charge (c/kwh) Actual Budget Consumer classification 2011/ /13 Free Basic Electricity 0 0 Domestic (pre-paid) Domestic (conventional) Agriculture Manufacturing / Industrial Commercial Street lighting Sold to other departments Total Sale of Electricity
7 BULK PURCHASES Bulk Purchases from Eskom will increase by 7.92% on average as from 1 July 2013.
8 MEGAFLEX CONSUMPTION Consumption 2012/ /2014 Increase kva DEMAND (METER) R R % kva Access (Connection) R R % TARIFF c/kwh Peak - High Demand R R % Standard - High Demand R R % Off-Peak - High Demand R R % Peak - Low Demand R R % Standard - Low Demand R R % Off-Peak - Low Demand R R % Reactive energy R R % TOTAL
9 MEGAFLEX COST Consumption 2012/ /2014 Increase kva DEMAND (METER) R R % kva Access (Connection) R R % TARIFF c/kwh Peak - High Demand R R % Standard - High Demand R R % Off-Peak - High Demand R R % Peak - Low Demand R R % Standard - Low Demand R R % Off-Peak - Low Demand R R % Reactive energy R R % TOTAL R R % Average c/kwh
10 MINIFLEX CONSUMPTION Consumption 2012/ /2014 Increase kva Access (Connection) R R % TARIFF c/kwh Peak - High Demand R R % Standard - High Demand R R % Off-Peak - High Demand R R % Peak - Low Demand R R % Standard - Low Demand R R % Off-Peak - Low Demand R R % Reactive energy R R % TOTAL
11 MINIFLEX COST Consumption 2012/ /2014 Increase kva Access (Connection) R R % TARIFF c/kwh Peak - High Demand R R % Standard - High Demand R R % Off-Peak - High Demand R R % Peak - Low Demand R R % Standard - Low Demand R R % Off-Peak - Low Demand R R % Reactive energy R R % TOTAL R R % Average c/kwh
12 TOTAL BULK PURCHASES 2012/ /2014 GRAND TOTAL COST R R Combined Average c/kwh Combined Percentage Increase 7.92% 12
13 ACCUMULATED ELECTRICITY PURCHASES: R MIL Axis Title JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/ Budget 2012/ Actual 2011/
14 MONTHLY ELECRICITY PURCHASES: mwh Axis Title JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/ Budget 2012/ Actual 2011/
15 AGGREGATE ELECTRICITY SALES: R MIL Axis Title JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Budget 2012/ Actual 2012/ Actual 2011/
16 MONTHLY ELECRICITY SALES: mwh Axis Title JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/ Budget 2012/ Actual 2011/
17 SALARY INCREASE Salary increase based on CPIX 5.4% plus 1.25% plus 2.5% notch increase for qualifying employees in terms of the national agreement reached between SALGA and the unions. Total increase 9.15%
18 NOTCH INCREASES NOTCHES +6.65%
19 TARIFF INCREASE COMPARISON NERSA WITZENBERG BULK PURCHASE 7.3% 7.92% SALARY INCREASE 6.75% 9.15% GUIDELINE INCREASE 7.0% 8.0% 19
20 ELECTRICITY SURPLUSES Budget 2012/13 Budget 2013/14 Budget 2014/15 Budget 2015/16 Electricity Revenue Electricity Expenditure Surplus Surplus % 12.1% 12.2% 11.5% 11.1% If the 8% tariff increase is disallowed, the surplus will be reduced to 11.4% for the 2013/2014 financial year. 20
21 ELECTRICITY TARIFF INCREASES SUBMITTED FOR APPROVAL General Tariffs 8% Household tariffs > 350 kwh 6% Electricity tariffs charged by Eskom increase by 7.92%.
22 THANK YOU SITUATIONAL ANALYSIS 2006 United in our commitment to improve the quality of life of its residents so that all can share in its prosperity and live in harmony
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