The Sector Law requires the imposition of an approved tariff approved by the Council of Ministers or a tariff reflecting the cost to all electricity sector subscribers who are provided by the licensees. The cost of the tariff is approved by the Council of Ministers. The licensees will be obliged to apply tariffs to customers from government, commercial and industrial categories whose consumption exceeds 150 MWh per year starting from January 2017.
The Sector Law requires Licensed Suppliers to charge either a Permitted Tariff or, where no Permitted Tariff exists, a Cost-Reflective Tariff, for the supply of electricity to customers. One of the important safeguards for customers provided by the Sector Law is a requirement that all electricity supply tariffs are approved by the Council of Ministers. The Table below presents the current Permitted Tariffs for the different customer categories;
Cost Reflective Tariffs (CRT)
The Council of Ministers approved the implementation of Cost Reflective Tariffs on electricity supplied to Government, Commercial and Industrial customers whose consumption exceeds 150 MWh per year, starting from 1 January 2017.
Cost Reflective Tariffs consist of four components: - hourly Energy charges referenced to published PWP Bulk Supply Tariffs (BST); - a Transmission Use of System charge (T) applied to a customer’s contribution to system peak demand; - a Distribution Use of System Charge (D) applied to each kWh transported across a licensed Distribution System to a customer’s premises; - a Supply charge (S) to recover the costs of administering a customer’s account (including meter reading, billing and collection costs). The figure below provides the current approved cost reflective tariffs for the large customers.