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Rationalisation of electricity pricing in South Africa's electricity distribution industry

Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: The South African Electricity Distribution Industry is riddled with tariffs.
Every utility in South Africa probably uses some method for allocating
cost, whether it is theoretically founded or not. There are currently over
2000 different tariffs in South Africa and the need for rationalisation has
been widely recognised and acknowledged. Many of these tariffs have not
been the outflow of accepted methodologies but rather a function of
individual utility policy and practices.
There is however a dire need to standardise such methodologies in the
future. A standardised methodology might be the only way to eventually
rationalise the thousands of tariffs that exist in the electricity industry.
Government has emphasised the importance of tariffs to be cost reflective
in the future. The only possible way to reach this objective would be to
determine clear and concise methods of allocating cost that can be
utilised by the entire industry.
This study project describes a standardised methodology for determining
the cost to supply different customer categories in an electricity
distributor. The methodology offers enough flexibility not to bind any
party into laboursome, complex and time consuming costing activities. It
does however require that the costs of a distributor are carefully investigated and all functions performed in the utility are isolated. This is
referred to as ringfencing of costs. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse Elektrisiteitverspreidingsbedryf het veelvuldige
tariewe. Elke utiliteit in Suid-Afrika gebruik waarskynlik 'n metode vir
kostetoedeling, wat nie noodwendig teoreties gebaseer is nie. Huidiglik is
daar meer as 2000 verskillende tariewe in Suid-Afrika en dit word alom
besef en erken dat gronde vir rasionalisering bestaan. Baie van die
tariewe het nie ontstaan uit die gebruik van aanvaarbare
berekeningsmetodes nie, maar was eerder die gevolg van individuele
beleid en praktyke van utiliteite.
Daar is 'n dringende behoefte om hierdie berekeningsmetodes in die
toekoms te standardiseer. 'n Standaard metode mag die enigste manier
wees om uiteindelik die duisende tariewe wat in die elektrisiteitsbedryf
bestaan te rasionaliseer.
Die regering het die belangrikheid dat tariewe in die toekoms koste
reflekterend moet wees benadruk. Die enigste moontlike manier om
hierdie doelwit te bereik, is om helder en duidelike metodes vir koste
toedeling te bepaal vir gebruik deur die hele bedryf.
Hierdie verhandeling beskryf 'n standaard metodologie om die koste te
bepaal om verskillende klantegroepe in 'n elektrisiteitsverspreider van
krag te voorsien. Die metodologie bied voldoende plooibaarheid om geen
party aan arbeidintensiewe, kompleks en tydrowende kostebepalings te verbind nie. Dit vereis egter dat die koste van 'n verspreider noukeurig
ondersoek word en dat alle funksies wat verrig word uitgelig word.
Hierna word verwys as afbakening van kostes.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51893
Date12 1900
CreatorsMakawa-Mbewe, Patrick
ContributorsRoux, A., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business .
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format[132] p.
RightsStellenbosch University

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