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APPENDIX A Part of Solidarity’s submission to NERSA on the issue of Eskom’s proposed MYPD2 Municipal electricity redistributors’ price increases. APPENDIX A – Municipal tariff increases. APPENDIX A – Municipal tariff increases. APPENDIX A – Municipal tariff increases.
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APPENDIX A Part of Solidarity’s submission to NERSA on the issue of Eskom’s proposed MYPD2 Municipal electricity redistributors’ price increases
APPENDIX A – Municipal tariff increases If the three different approaches are considered cumulatively over the three year period that Eskom’s MYPD2 covers, the following emerges: Between the range of an original municipal gross profit margin of 50% and 130%, the respective cumulative increases over the three year period range from 97,4% to 63,5% for example 2 and from 106% to 78,2% for example 3. Instead of the price of electricity for customers of municipalities more than doubling over the next three years, the cumulative increase could be kept much lower than the current method’s 146% while still allowing municipalities an 8% increase in gross profit each year to compensate for possible increases in the cost of distribution. In none of the examples is Eskom’s flow of revenue or tariff increases affected – the changes are merely made at municipal level.