Understanding Third-Party Wheeling and the Regulatory Landscape in South Africa
A “Guide for Municipalities on how to establish and run the Third-Party Wheeling Process” has been published.
Electricity generation and distribution are critical components of any modern society. In South Africa, a complex regulatory landscape governs these activities, and one aspect that has garnered significant attention in recent years is third-party wheeling.
What is Third-Party Energy Wheeling?
Third-party wheeling, often referred to simply as "wheeling," is a process that allows electricity consumers to choose their electricity supplier, distinct from the traditional utility company that operates the distribution network. In essence, it enables consumers to buy electricity from independent power producers (IPPs) or generators rather than solely relying on their local utility. This concept encourages competition in the electricity market and can potentially lead to lower electricity prices and increased energy efficiency.
What's Inside this Guide?
This publication systematically addresses legal, regulatory, technical, and operational aspects of energy wheeling. From defining key terms to exploring the legal framework, from tariff structures to dispute resolution.
With this guide, municipalities can learn how to establish and operate third-party energy wheeling systems with an 11-Step Process. It covers everything from gaining staff buy-in to opening the wheeling market and maintaining ongoing monitoring and improvement mechanisms. Discover the roles and responsibilities of key stakeholders and embrace the collaborative nature of wheeling services.
This Wheeling Guide empowers municipalities to forge strong contractual arrangements and navigate the complexities of metering, data management, and billing.
Wheeling Guide: https://www.sagen.org.za/publications/all-publications/187-wheeling-guideline-for-municipalities
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Upcoming Training Opportunity
To enhance the knowledge on wheeling, EY is organising with support from SALGA an informative two-day online training session on October 18th and 19th. The training programme is an invaluable opportunity for interested municipal representatives. The agenda covers all aspects of the wheeling process, from legal and regulatory matters to technical implementation details.
Goal of this training is to empower municipalities with the knowledge and skills needed to effectively implement the wheeling framework and reap its benefits. Topics include understanding third-party wheeling, regulatory insights, technical aspects, contractual arrangements, metering, tariffs, and more.
Register now at https://forms.office.com/e/dmQFaEYpmg and mark your calendar for a transformative training experience!
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This project is supported by the South African-German Energy Programme (SAGEN). SAGEN collaborates with South African partners to support the country’s transition to a reliable, affordable and clean energy future. SAGEN is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), co-funded by the Swiss State Secretariat for Economic Affairs (SECO) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in cooperation with the Department of Mineral Resources and Energy (DMRE), the National Treasury (NT), Eskom, the South African Local Government Association (SALGA) and the South African National Energy Development Institute (SANEDI).
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