South Africa Reforms Electricity Wheeling Framework

South Africa’s Department of Electricity and Energy has released updated regulatory rules on network charges for third-party electricity transportation. Known as the electricity wheeling framework, the new rules allow the country to diversify power generation sources while incentivizing private investment across the sector. 

Key requirements for third-party participation include licensing and registration with the National Energy Regulator of South Africa, valid power purchase and system-use agreements, grid code compliance and auditable metering systems.

According to Kgosientsho Ramokgopa, Minister of Electricity and Energy of South Africa, the updated framework “is consistent with our objective of ensuring that we are able to achieve energy security in the country. We are able to diversify our sources so we don’t rely on Eskom for electricity generation in the country.”

The framework promotes open access to the grid, enabling consumers to choose their electricity supplier. It also mandates non-discriminatory grid access, cost-reflective tariffs and transparent, unbundled pricing. Additional provisions include maintaining network reliability, standardizing processes, ensuring regulatory certainty, and supporting the just energy transition through access to renewables.