How a wheeling transaction works, step by step
From generation and the Power Purchase Agreement through metering, reconciliation and settlement, here is what actually happens in a third-party wheeling transaction.
- 1
A generator produces electricity
An IPP, embedded generator or renewable energy project generates electricity and exports it into the grid. The generator must have a compliant grid connection, suitable metering and the necessary NERSA licence or registration status.
- 2
A buyer signs a PPA
The buyer, also called the off-taker, enters into a Power Purchase Agreement with the generator or energy trader. The PPA sets the commercial price, term, volume, risk allocation, change-in-law clauses, payment terms and termination provisions.
- 3
The network is used to deliver the transaction
The electricity flows into the interconnected network. The buyer continues to be connected to Eskom or a municipal distributor. The grid remains responsible for physical electricity delivery, while the wheeling transaction determines how exported and consumed energy is accounted for.
- 4
Meter data is collected
Compliant metering is required at the generator and off-taker points. The South African Distribution Metering Code applies to metering installations used for active and reactive energy and demand measurement, the design and commissioning of metering equipment, and meter data collection, verification and storage.
- 5
Billing and reconciliation are performed
The network owner or licensed distributor reconciles generator export, off-taker consumption, losses, network charges and applicable wheeling credits. Any deficit energy is still supplied by the local utility or Eskom under the customer's normal supply arrangement.
- 6
Charges are settled
Use-of-system charges, network charges, administration charges, losses, levies and surcharges may still apply. NERSA's rules require use-of-system charges to be paid by generators and loads for the use of transmission and distribution systems, regardless of whether the electricity is supplied by the network service provider or purchased through a third-party wheeling transaction.
Many wheeling projects succeed or fail at the data layer
Accurate meter data, billing logic, reconciliation reports and exception management are essential for a transparent wheeling process. Meerkat Energy supports utilities and project teams with metering data, reporting and reconciliation platforms that help turn wheeling rules into operational processes.
Talk about metering & reconciliation
Find out whether your organisation is ready for wheeling
Many wheeling projects succeed or fail at the data layer: accurate meter data, billing logic and monthly reconciliation. Work through a structured readiness check, or talk to a team that builds the metering and reconciliation platforms behind real wheeling transactions.