- The Association of Municipal Electricity Utilities (AMEU) is an association of electricity distribution utilities and commercial companies providing goods and services to the electricity distribution utilities in Southern Africa.
- AMEU has published a paper discussing wheeling costing, challenges and opportunities to assist municipalities in South Africa to facilitate third party access to their networks.
- Municipalities will be required to publish use-of-system charges to allow access to these grids through a wheeling system.
In August last year, the South African government announced that electricity wheeling is permitted under certain conditions. Many municipality’s find themselves without the knowledge or necessary frameworks in place to exploit the opportunity.
To calculate fair use-of-system charges requires compliance to existing regulations whilst contending with diverse Distributors’ operating contexts. Increasing understanding of wheeling and treating for related implementation challenges is an opportunity to support a just energy transition in the EDI.
This discussion paper explores the cost-of-supply framework as a basis to calculate fair use-of-system charges and the opportunities it presents to evolve the sustainability of wheeling charges. Included is a consideration a pragmatic billing approach for Wheeling. In closing, some opportunities to expand on the existing regulatory framework for Wheeling are outlined.
Link to the full paper HERE
Author: Bryan Groenendaal
