Introduction of inclining block tariffs benefits low income domestic customers in South Africa


Pretoria, South Africa — (METERING.COM) — June 15, 2012 – The introduction of Inclining Block Tariffs (IBTs) in South Africa is benefitting low income domestic customers, according to the National Energy Regulator of South Africa (NERSA).

NERSA reports that in a study into the impact of the implementation of IBTs, customers consuming between 0 kWh and 400 kWh realized a decrease in their electricity bills, while some customers who consume between 401 kWh and 800 kWh have realized a decrease in their electricity bill, but others have experienced a slight increase. Customers consuming above 1,000 kWh experienced an increase in their bills.

The implementation of IBTs was approved by NERSA on February 24, 2010, with the objective to cushion the effect of rising electricity prices for low income residential customers.

The study, which was commissioned in October 2011, found that IBTs have been fully implemented by Eskom for both its conventional and prepaid meter customers, as well as by 76 out of the 173 municipalities.

NERSA is now continuing to assist the remaining municipalities in effectively implementing IBTs.