In an effort to shift away from being an electricity distribution entity to an energy service provider, the city council has approved generator-use-of-system tariffs . Wheeling allows independent power producers to use existing grid infrastructure to supply customers.
“The tariff will also be applicable to customers who self-generate electricity for use at a location elsewhere on the City Power electricity distribution network.” Although City Power is compelled to give these third-party private electricity generatorsaccess to the network at a reasonable cost via its wheeling system, they will still be subject to the city’s safety requirements.
“Allowing customers to source electricity from third parties will displace the current revenue margin on energy sold, while the demand charge is not fully cost-reflective. The network access charges should therefore be proportional to the opportunity cost of providing third-party access to the City Power network,” Mangena said.