South African Municipalities: Calculating Fair Use-Of-System Charges for Wheeling

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

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Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

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