eThekwini rates of payment to embedded electricity generators

Submitted by: Margaret McKenzie, Monday, October 15, 2012

eThekwini Municipality’s electricity department recently released details of the tariff structure used to pay for electricity generated onto the Durban grid. Generators can expect payment based on the following: Amount of Energy generated – kWh, Amount of kvA generated and the voltage level of generation.

kWhs Generated Payment

Payments for kWhs generated vary depending on the season in which the energy is generated and the time of day.  The table below outlines the price paid per kWh excluding VAT:





High season (June to August)

197.32 c per kWh

51.42 c per kWh

27.52 c per kWh

Low season (September to May)

55.19 c per kWh

33.86 c per kWh

23.69 c per kWh

The diagram below shows peak, standard and off-peak periods for weekdays, Saturdays and Sundays.

Peak, standard and off-peak periods(Image credit Eskom Tariff Book)

Network Demand Payment

The network demand component of the tariff is R16.41 (excluding VAT) per kVA per month.  The network demand payment is based on the generation demand of the connecting entity at the time of Eskom’s maximum demand.    In Durban the maximum demand time period is generally between 4pm and 6:30pm on weekdays

Voltage surcharge payment

In addition to the payments made for kWhs generated and network demand eThekwini Municipality will pay a voltage surcharge of an additional 10.05% on any payments made.  This surcharge is added because local generation offsets transmission losses and reduces the load on the transmission network.


Generators need to submit an application to connect to municipal grid and conclude a power purchase agreement with eThekwini Municipality before they can sell to the municipality.   In addition since generators are selling electricity to eThekwini Municipality on a time of generation basis, they need to purchase electricity on a time of use tariff.   The municipality will not allow an entity buying electricity on a flat rate tariff to sell electricity.

More information on the application process can be found in a further article regarding existing generators onto the eThekwini grid and in a presentation made by eThekwini Municipality electricity department and lodged on the KwaZulu-Natal Sustainable Energy Forum website.  

Margaret McKenzie