City Power says it has established key regulatory and operational frameworks to support electricity wheeling within its network but warns that grid readiness remains a constraint.
According to City Power spokesperson and General Manager for Public Relations and Communication, Isaac Mangena, the utility has implemented a wheeling framework and a small-scale embedded generation (SSEG) policy to enable third-party participation.
“The approval of the wheeling framework and the SSEG policy has created the necessary regulatory and operational foundation for third-party energy transactions across the municipal grid,” Mangena told Energize.
He said the framework allows private generators to sell electricity to customers using municipal infrastructure with City Power responsible for ensuring that transactions are technically feasible, fairly priced and do not compromise network integrity.
The utility has prioritised the rollout of compliant, bi-directional metering systems to measure imported and exported electricity, added Mangena. This, he said, is required to support accurate measurement and enable future compensation mechanisms, including feed-in or buyback arrangements.
However, Mangena cautioned that infrastructure limitations could affect the pace of implementation.
“Increasing levels of distributed generation introduce technical complexities such as voltage management, reverse power flows and network congestion,” he said, adding that these challenges require ongoing investment in grid modernisation and system monitoring.
Mangena said municipalities must balance enabling market participation with maintaining system stability and financial sustainability. While electricity trading presents new opportunities, he noted that it also depends on sufficient network capacity and pricing structures that ensure cost recovery without disadvantaging other customers.
He said the developments highlight the dual role of municipalities in South Africa’s evolving electricity market as enablers of reform and custodians of grid reliability.
