In a groundbreaking move, the Department of Electricity and Energy has announced the release of updated regulatory rules on network charges for third-party transportation of energy. These updated rules, known as the "electricity wheeling framework," were unveiled by Minister Kgosientsho Ramokgopa during a media briefing held on Tuesday.

Electricity wheeling involves the delivery of electricity by a generator to a customer in a different location using existing distribution or transmission networks. This framework is heralded as a pivotal intervention in South Africa's electricity sector, promising to reshape the energy landscape.

Minister Ramokgopa emphasized the significance of the updated framework, describing it as the "most consequential intervention" for the sector. He stated that the move aligns with the goals outlined in the Energy Action Plan enacted by President Cyril Ramaphosa in July 2022. The framework is set to enhance energy security by diversifying generation sources beyond the state utility, Eskom.

Key Conditions for Third-Party Participation

To participate in electricity wheeling, third parties must adhere to specific conditions:

  • Licensing and Registration: Participants must be licensed and registered with the National Energy Regulator of South Africa (NERSA).
  • Agreements: Power purchase agreements, as well as connection and use-of-system agreements, must be properly concluded.
  • Compliance: Participants are required to comply with grid codes and maintain auditable metering systems.

The updated wheeling framework aims to support open access to the electricity network, allowing consumers the freedom to choose their power sources. This initiative is expected to foster competition, ultimately leading to reduced electricity prices.

The framework also targets several key areas:

  • Non-Discriminatory Access: Ensuring equal access to the grid for all users.
  • Cost Reflective Tariffs: Implementing charges that mirror the actual cost of network use.
  • Fairness and Equity: Striving for a balance of interests between customers and licensees with unbiased tariffs.
  • Transparency: Promoting unbundled tariffs to reveal true costs, subsidies, and levies.
  • Network Reliability: Maintaining grid security during wheeling activities.
  • Standardisation: Creating consistent processes across all network service providers.
  • Regulatory Certainty: Reinforcing NERSA's role in governing fair and transparent access.
  • Just Energy Transition: Facilitating access to renewable energy through wheeling.




Minister Ramokgopa highlighted the broader implications of the framework, stating, "We are democratizing this space. By not relying solely on Eskom, multiple generators of electricity can emerge. With competition comes efficiency, innovation, research, and investment, potentially driving prices down."

Ramokgopa also noted that affordable electricity is crucial for all, including those in rural and peri-urban areas. The framework is poised to support this goal by encouraging diverse energy generation and reducing costs.

The Energy Action Plan (EAP), announced by President Ramaphosa in July 2022, is coordinated by the National Energy Crisis Committee (NECOM) under Minister Ramokgopa's leadership. The plan features five key interventions aimed at reducing load shedding and achieving long-term energy security:

  1. Fix Eskom: Improve the availability of existing supply.
  2. Private Investment: Enable and accelerate private investment in generation capacity.
  3. Procurement: Fast-track the procurement of new generation capacity from renewables, gas, and battery storage.
  4. Rooftop Solar: Encourage businesses and households to invest in rooftop solar.
  5. Sector Transformation: Fundamentally transform the electricity sector to ensure long-term energy security.

The unveiling of these updated regulatory rules marks a significant step in South Africa's journey towards a more secure, diverse, and affordable energy future.