Electricity Sub-Metering: Legalities, Regulations & Technical Issues
Introduced in South Africa in about 1990, electricity sub-metering is widely used in rental and multi-tenant properties to allocate energy costs based on actual consumption. It is popular amongst tenants since it allows them to adjust their lifestyles to better align with their income and expenses. Prepaid meters shift the responsibility of payment and usage directly to the tenant.
In South Africa, how electricity sub-metering is implemented determines whether it remains compliant. The regulatory framework is anchored by the National Energy Regulator of South Africa (NERSA), which oversees electricity distribution and clarifies when resale may require licensing which applies mainly to Municipalities. The Electricity Regulation Act 4 of 2006 (ERA) establishes the distinction between lawful resale and regulated supply, while municipalities enforce tariff structures.
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