Understanding the Problem
Richtersveld Local Municipality faces a multi-decade challenge of trading with non-cost reflective electricity tariffs, creating an unsustainable financial position.
Eskom MunicFlex Tariff
Current electricity pricing structure
| Season | Peak | Standard | Off-Peak | Demand |
|---|---|---|---|---|
High Season(Jun - Aug) | R6.99 | R1.75 | R1.16 | R24.67 |
Low Season(Sep - May) | R2.90 | R1.63 | R1.16 | R24.67 |
Key Insight: Peak tariffs during high season reach R6.99/kWh - nearly 6x the off-peak rate, creating significant cost pressure on municipal electricity procurement.
Baseline View
23/24 D-Form Financial Analysis
R20.20M
Annual bulk electricity cost
R19.64M
Annual collected electricity revenue
Baseline Income After Settlement
-R562K
Even keeping 100% of collected income, the municipality still faces a deficit
Deficit at 60% Income Allocation
-R8.4M
Critical annual shortfall that cannot be sustained long-term
This Multi-Decade Problem Requires an Innovative Solution
Rapidly increasing tariffs would cause consumer revolt. The municipality needs a sustainable, innovative approach to transform its electricity trading status quo.