Short Term Energy Purchases Programme
Short Term Energy Purchases Programmes currently consists of 2 programmes offered by the Market Operator. These programmes were developed to enable the procurement of additional capacity through the Standard Offer Programme as well as the Emergency Generation Programme
Standard Offer Programme
The Standard Offer Programme was developed to procure power from existing producers for a period of three years The standard offer approach allows the utility to purchase energy at an established price calculated at the avoided cost of own generation (including long term energy purchases from independent power producers). The standard offer allows for a static price, which is established each year based on the regulatory approved cost recovery and covers the variable cost of generation. It also allows for a dynamic price option where the price is set day-ahead for each hour of the following day, indicating the avoided cost of generation based on internal scheduling of generators.
The Emergency Generator Programme was developed to procure more expensive power during periods when the grid is significantly constrained. The programme allows for independent generators to provide energy on a daily, weekly or monthly basis to compete with the Eskom generators in the internal market. The independent generators will be dispatched based on the offer price and availability provided.