Standard Offer

A generator, trader or consumer with surplus energy can sell the energy to Eskom under the Standard Offer by applying the programme at any time.  If the generator, trader or consumer meets the requirements of the programme they are awarded a Power Purchase Agreement with standard terms and pricing set by Eskom.  The applicant can choose between the Static Price or Dynamic Price options.

Standard Offer Options

         Static Price option:

  • Eskom determines a Static Price based on the regulatory approved cost of Eskom generation and energy purchased from independent power producers as well as import energy. This total cost of generation is reduced by a contribution for fixed costs for Eskom generation and dispatchable independent power producers.
  • The static price structure reflects the time-of-use structure as approved by Eskom Board.

          Dynamic Price option:

  • The dynamic price structure is determined by the Day Ahead market in the Eskom Dynamic Energy Markets (EDEM) as per the EDEM rules. The prices are determined by 14h00 on the day preceding the actual day of operation and shall be provided to the generator.
  • The price reflects the marginal cost of generation required to meet expected demand in each hour but is capped at a price of R1093.20/MWh.

Application process:

Application
Click here  for the online application form, if you have difficulty access the form send an email to [email protected] your query will be attended 

* Instructions for applications : download the application form, fill it in and email the filled application form to [email protected]

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Contracting
Click here to download and complete application form  and e-mail application to [email protected] an Eskom advisor will attend to it.

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Execution
Seller provides day-ahead forecast (applicable to static and dynamic pricing options)

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Standard Offer factsheet click here

Frequently Asked Questions

  • The Standard Offer is an Eskom energy supply product encouraging the addition of more kilowatt-hours in the South African electric grid.

  • Privately owned generators can sell the electricity they generate to Eskom through the Standard Offer.

  • This electricity is then supplied to Eskom end-customers including Municipalities that purchase electricity from Eskom generators that have excess capacity.

  • No qualification is necessary. A generator or prosumer can sell to Eskom.
  • The energy sold through the Standard Offer may however not be committed to other programs including Renewable Energy Independent Power Producer (REIPP) or other Eskom demand management programmes.
  • The seller will need to adhere to the terms and conditions of the Eskom contract

Presently, the Standard Offer contracting period is up to 3 years. In the future regulatory approvals may increase this period.

  • Eskom pays for the energy through the Standard Offer based on two options.
  • The first is a predetermined annual time-of-use purchase tariff, the static option.
  • The other is based on the Eskom Dynamic Energy Market (EDEM) daily energy purchase prices, the dynamic option.
  • A seller of energy to Eskom can chose the options that they use to sell their energy to Eskom.
  • The static option is based on an annual time-of-use and seasonally differentiated purchase tariff.
  • It is static because it is established each year based on the regulatory approved cost recovery and covers the variable cost of generation.
  • This static option has different purchase rates for peak, standard and time of use periods that are different for the high-demand season and the low-demand season.
  • The dynamic option is based on the daily Eskom Dynamic Energy Market (EDEM) energy purchase prices.
  • It is dynamic as the price changes for each hour each day.
  • The EDEM purchase prices are determined day-ahead for each hour when the EDEM supply meets the demand.
  • The prices are determined by 14h00 on the day preceding the actual day of operation and shall be provided to the generator.
  • The prices reflect the marginal cost of generation required to meet expected demand in each hour but is capped at a price of R1093.20/MWh.

The application process is provided on this link https://www.eskom.co.za/distribution/standard-offer/

Visit the link https://www.eskom.co.za/distribution/standard-offer/ to obtain more information

The process has 3 main steps.

The first step is the seller completion of the application form and submission as provided at link https://www.eskom.co.za/distribution/standard-offer-supply/

The second step is the Eskom review and approval of the application.  In this process

  • The application is checked for completeness, Eskom will contact the applying supplier for completion if needed.
  • The generator connection is confirmed in the Eskom grid ensuring all the necessary technical requirements are met (see the contract proforma 
  • The application is submitted to the Eskom governance for approval, this process can take up to four (4) weeks from the date of application. The applicant will be advised once the application is received by Eskom. 
  • Once approved the applicant will be informed and the contracting process will commence working with a dedicated Eskom official. 

The third step is the Execution of the contract and involves liaising with the dedicated official for the contract.

Send an e-mail to [email protected] and an Energy Advisor will contact you.

At a minimum the seller will be required to provide a daily day-ahead forecast of electricity for sale to be supplied with the applicable metering and network capacity in place. More information is contained in the contract proforma 

The supplier will be paid as per the terms agreed to with Eskom on the Standard Offer contract and at the minimum this will be monthly after all validation and reconciliation is concluded for electricity sold to Eskom.

The seller can contact Eskom working through their dedicated Eskom official nominated at the acceptance of the application. It is possible to review the supply every 3 months.