Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Rules

Grid Capacity Allocation Rules

8. The Queuing Procedure

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8.1 The NSP shall develop a fair and transparent queuing procedure to manage multiple applications, ensuring equitable treatment of all Applicants. The queuing procedure developed by the NSP shall be in line with the grid capacity allocation process requirements stipulated in section 7 of these rules.

 

8.2 The queuing procedure shall outline a clear tracking or allocation system, detailing how applications are assessed and moved up or down the queue at each phase of the allocation process (i.e. pre-feasibility, reservation and allocation) as stipulated in section 7 of these rules.

 

Queue Provisions

 

8.3 NSPs shall implement a three-stage queuing system consisting of project registration (pre-feasibility), capacity reservation and capacity allocation.

 

8.4 This system shall apply to all Applicants seeking connection to the Grid. Queue positions shall be based on progression through defined project milestones and validated evidence of project readiness.

 

Project Registration (Pre-feasibility)

 

8.5 NSPs shall keep an official record of Applicants that have signalled initial project intent and submitted a complete application.

 

8.6 In order to be placed on the project list/register, the Applicant must fulfil the following:
(a) Submit a completed application
(b) Submit a request for a CEL to the NSP, pay the CEL fee and provide a proof of payment.
(c) Submit documentary proof of initial engagements with affected landowners and Department of Environmental affairs.

 

8.7 On receipt of the above, the NSP shall:
(a) Enter the project into the project register/list
(b) Issue a CEL within the timelines stipulated in the Grid Code.

 

8.8 The CEL is valid for a period of 12 months. If it is not accepted by the Applicant within 12 months, the CEL expires, and the project is removed from the project list.

 

8.9 On acceptance of the CEL and payment of the CEL acceptance fee within this period, the project will progress to be officially placed in the queue for capacity reservation.

 

8.10 A project that meets all requirements set out in section 7.6 and 7.7 of these rules ahead of schedule, will move up in the reservation queue, ahead of a project that has delayed its progress despite earlier registration.

 

Capacity Reservation Queue

 

8.11 Initial queue positions are determined by the date of CEL acceptance, submission of a formal request for BQ and payment of the relevant CEL acceptance fee.

 

8.12 The project must also demonstrate enhanced project readiness by meeting the following:
(a) Provision of required guarantees or security payments
(b) Obtaining Environmental Authorisations
(c) Obtaining land and rights
(d) Having 12 months validated generation resource data (validated generation resource data means for example independently verified solar irradiance or wind speed records)
(e) Having proof that confirms that it has applied for/obtained registration or a generation licence with NERSA.

 

8.13 On receipt of the above (8.11 and 8.12), the NSP shall reserve capacity for the project, and prepare and issue a BQ within the timelines stipulated in the Grid Code.

 

8.14 The BQ is valid for a period of six months (i.e. six months post BQ issue date). If it is not accepted by the Applicant within six months, the BQ expires and the capacity reservation lapses.

 

8.15 Projects failing to meet the advancement milestones within the validity period of the BQ will be removed from the queue and the reserved capacity will go to the next eligible project.

 

8.16 The NSP may, on receipt of a substantiated written request from the Applicant, grant a single extension of no more than six months for the fulfilment of the BQ requirements. The outcome of this stage is that once all the requirements are met by the Applicant (i.e. BQ accepted and payment made by the applicant), the project progresses to the capacity allocation queue.

 

Capacity Allocation Queue

 

8.17 To enter the capacity allocation queue, the project must demonstrate readiness by having fulfilled the following:
(a) Accepted the BQ and paid the BQ acceptance fee.
(b) Completed legally binding agreements such as a connection agreement, use-of-system agreement and implementation agreement.

 

8.18 Connection timelines are contractually binding and monitored for compliance.

 

8.19 On fulfilment of the above (8.18) by the Applicant, the NSP shall formally allocate capacity to the project and remove it from the competitive queue.

 

8.20 Capacity may be revoked and reallocated if the project fails to reach its milestones within the agreed timelines in the relevant agreements.

 

General Provisions/Principles on Queuing

 

8.21 All Applicants must submit an application in accordance with the process specified by the NSP, including the required technical information and applicable application/CEL fee.

 

8.22 On receipt of the application, the NSP shall validate the completeness and accuracy of the submission.

 

8.23 On successful validation, the NSP shall record the project in the project register, indicating the date on which a complete application was made.

 

8.24 The NSP is required to provide feedback on incomplete applications within 10 working days.

 

8.25 Queuing shall commence at the capacity reservation stage based on CEL acceptance and related submissions.

 

8.26 Queuing shall apply where multiple applications are received for connection capacity at a specific node or geographic area. Where no competition exists for capacity, queuing principles shall not apply.

 

8.27 Advancement from the project register to the capacity reservation queue is determined by the date of acceptance of the CEL.

 

8.28 Queue positions are non-transferable, except in cases of change of ownership.

 

8.29 Applicants must maintain their queue position in good standing by complying with:
(a) all applicable requirements at each stage (e.g. agreements, documentation, financial guarantees); and
(b) the prescribed deadlines.

 

8.30 Each queueing stage has defined validity periods. Failure to advance within these periods will result in removal from the queue.

 

8.31 NSP delays shall not negatively impact the Applicant, meaning Applicants may not lose their queue positions due to NSP delays.

 

8.32 Applicants may be eligible for refunds of financial security deposits if actual network upgrade costs exceed initial estimates by thresholds higher than those stated in the CEL or BQ.

 

8.33 Any disputes regarding queue positions or readiness assessments shall be referred to NERSA for adjudication.

 

8.34 If a project is ready but capacity is insufficient, it retains its queue position for the validity period of the CEL or respective stage.

 

8.35 The NSP should notify the Applicant within 10 business days once capacity becomes available again.

 

8.36 NSP shall publish a public queue status report monthly, subject to confidentiality protections.

 

8.37 Queue information must be publicly disclosed and updated monthly, and must exclude commercially sensitive data.

 

8.38 The following queue information shall be published by the NSP:
(a) Project/Applicant reference number
(b) Application date
(c) Size/capacity applied for
(d) Technology
(e) Location e.g. substation or node
(f) Status
(g) Position
(h) Total capacity available at key nodes
(i) Total queued capacity per node
(j) Timeline estimates for when capacity may become available.

 

8.39 The following information shall not be publicised by the NSP, as it is deemed to be sensitive:
(a) Project/Applicant identity
(b) Commercial/financial information

 

8.40 The NSP shall, at a minimum, update the queue information on the public tracking system monthly.