The framework that governs wheeling in South Africa
Wheeling sits inside a defined set of national laws, regulatory rules and codes. These are the instruments and agreements that shape every transaction.
Laws, rules and codes
Electricity Regulation Act, 2006
Act 4 of 2006 establishes South Africa's national regulatory framework. It makes NERSA the custodian and enforcer, and regulates generation, transmission, distribution, trading, import and export of electricity through licences and registration.
Electricity Regulation Amendment Act, 2024
Act 38 of 2024 introduced major changes to the market structure: the Transmission System Operator, functions for the National Transmission Company South Africa, and an open market platform for competitive trading. It commenced on 1 January 2025.
NERSA rules on third-party wheeling, 2025
Central to the current framework. They address network access, use-of-system charges, NERSA licensing and registration, tariff unbundling, administration charges, connection charges and compensation mechanisms.
Licensing and registration
The generator must be licensed by NERSA or register the activity, depending on Schedule 2 requirements. NERSA's 2025 rules note that wheeling generators may be exempt from licensing but require registration, provided the transaction does not sell energy to an organ of state.
Trading licence
Where an entity buys and sells electricity as a trader, a NERSA-approved trading licence is required. Import and export trading requires the appropriate NERSA-approved import or export trading licence.
Use-of-system charges
Wheeling does not avoid network charges. NERSA's rules state use-of-system charges are payable by generator and load customers who use the network, regardless of whether energy is supplied by the network service provider or purchased through wheeling.
Metering code compliance
Metering must comply with the applicable South African Grid Code, Distribution Code and Distribution Metering Code, covering installation design, commissioning, testing, data collection, verification and storage.
Key agreements required
A wheeling transaction normally requires several agreements. The exact structure depends on whether the generator and off-taker connect to Eskom, a municipality, the same network or multiple networks.
Power Purchase Agreement
Commercial agreement between the generator or trader and the buyer.
Connection Agreement
Confirms technical connection requirements for the generator and/or load.
Use-of-System Agreement
Allows use of the relevant transmission or distribution network.
Electricity Supply Agreement amendment
Updates the customer's existing supply agreement to allow wheeling credits and charges.
Wheeling Agreement
Sets out the wheeling rules, metering, reconciliation and billing process.
Metering / data agreement
Defines meter data access, validation, reporting and audit requirements.
Eskom requires the generator to have a compliant grid connection, and the customer whose account receives wheeled energy to sign an amendment to its Electricity Supply Agreement so the account can be adjusted. NERSA's rules require all parties to comply with relevant laws and agreements, including Connection and Use-of-System Agreements, Electricity Supply Agreements and wheeling amendment agreements.
From the rules to a working transaction
The framework sets the rules. Turning them into a billable, reconciled transaction is the operational challenge. Work through a readiness check, or talk to a team that builds the metering and reconciliation layer.