A tariff model for a competitive electricity market

The global trend of reform in the electricity supply industry (ESI) can be attributed to factors, such as consumers demand for price transparency and regulation of cross-subsidies among different users; need for higher energy efficiency in technical systems of utilities; significant growth in energy demand especially in developing countries, and pressure on governments to raise funds for social services, balance budgets and to carry out economic reform. This paper assesses existing Eskom consumer tariff structures and presents a tariff model for a competitive retail sector.