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Consumptive Tariffs - Electricity - Network Capacity Charges and Shared Network Cost Increases

From "Comment on the City’s draft Budget for 2025-2026"

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I wish to formally object to the proposed  425.92% increase in Network Capacity Charges, particularly as it relates to Maximum Export Capacity for renewable energy generators. This unprecedented increase, when coupled with existing Shared Network Charges (22.31% Increase), creates a significant disincentive for the development of new renewable energy projects within the City of Cape Town.

Large-scale renewable energy generation projects rely on predictable and economically viable network cost structures to attract investment and achieve bankability. The proposed tariff changes severely undermine the financial feasibility of such projects by disproportionately penalising generators for accessing and utilising the municipal grid. This is counterproductive to the City’s stated goals of promoting energy security, transitioning to a low-carbon economy, and encouraging private sector participation in clean energy.

I urge the City to reconsider the scale and structure of the proposed Network Capacity Charge and Shared Network Cost increases and to engage meaningfully with stakeholders in the renewable energy sector to develop a more balanced and enabling tariff framework.

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Posted by

unknown author on 30 April 2025

Current status

proposed