Digital platforms offer cost relief as municipalities adjust to Municflex regime

Digital energy management platforms are emerging to help municipalities navigate South Africa’s new electricity tariff structure. These tools support demand forecasting, tariff modelling, procurement scheduling and embedded generation integration – enabling more data-based decision-making.

This follows the electricity tariff adjustment of 11,32% – approved by the National Energy Regulator of South Africa and effective yesterday – and the rollout of the new bulk supply framework known as Municflex. The framework replaces previous supply categories with a single tariff that introduces time-of-use pricing, seasonal charges and revised cost recovery mechanisms.

One platform offered by Utility Consulting Solutions (UTCS) reports over 1,5 million units of surplus electricity traded within municipal grids. “We’re enabling municipalities to participate more actively in the electricity market, using tools that align with regulatory frameworks,” says Christo Nicholls, CEO of UTCS. “The traditional approach of passing costs to consumers is no longer sustainable. Municipalities and businesses need systems that help manage these tariff structures while maintaining affordability.”

The UTCS platform allows municipalities to track usage in real time, compare consumption against procurement schedules and identify when surplus energy can be traded back into the grid. It includes forecasting tools and supports integration with embedded generation such as rooftop solar. The system aligns with Municflex technical and regulatory requirements, helping municipalities manage electricity procurement and distribution more effectively.