Pretoria - Inclining Block Tariffs (IBT) is benefitting low income domestic customers, a study conducted by the National Energy Regulator of South Africa (Nersa) has found.
The objective of the tariffs, which were introduced in 2010, is to cushion the effect of rising electricity prices for low income residential customers. This is in accordance with the Electricity Pricing Policy (EPP) of 19 December 2008.
Commissioned on 12 October last year, the study looked at the impact of IBTs on different customer groups with electricity distributors that implement IBTs requested to submit their domestic customer's bills to Nersa. This would enable the regulator to determine whether customers were benefiting from IBTs.
"The findings indicated that customers consuming between 0kWh and 400kWh realised a decrease in their electricity bills, while some customers who consume between 401kWh and 800kWh have realised a decrease in their electricity bills, but others have experienced a slight increase," said the regulator on Monday.
For consumers consuming above 1000kWh, they experienced an increase in their bills.
The inclining block tariffs have been fully implemented by Eskom for both its conventional and prepaid meter customers.
IBTs have been fully implemented in 76 out of 173 municipalities for both conventional and prepaid customers.
"Nersa is continuing to assist the remaining municipalities in effectively implementing IBTs," it said.
