Eskom offers special rate for boiler energy consumption

Eskom has a variety of new growth-oriented offerings for the industrial market – the focus being on new and existing electricity-driven technologies that improve plant efficiency and unlock new markets.


The Electric Boiler Incentive Pilot Programme is one such offering. Eskom has set aside 50MW for customers to use at an incentivised flat rate during standard and off-peak time-of-use periods to:

  • Run electric boilers that are installed but out of service; or
  • Use electricity to run dual-fuel boiler systems that are presently using alternative fuel sources.

Electric boilers supply high quality steam and respond quickly to production changes. Moreover, they are environmentally friendly and cheaper to maintain.

The boiler incentive is structured as a two part offering for electricity consumed above a historical baseline – a high rate incentive of 20 c/kWh and a low rate incentive of eight c/kWh.

In order to qualify for the incentive, business customers need to:

  • Achieve minimum additional electricity consumption of 10 GWh per annum per plant or production facility.
  • Reach at least 50 percent of their year-to-date electricity consumption target per quarter.
  • Install an electricity meter as per Eskom’s specification to integrate into Eskom’s remote metering platform.
  • Activate boilers within three months of the start date of contracts.

Customers who are directly supplied by Eskom as well as customers supplied by municipalities are eligible. Additional electricity use to run electric boilers is monitored on a monthly basis against a historical baseline of electricity use over the most recent 12 calendar months. The incentive is paid on a quarterly basis.

The Electric Boiler Incentive Pilot Programme contracts for a two-year period – from 1 September 2018 to 31 August 2020. Applications are welcomed from 9 July to 17 August 2018, with contract negotiations scheduled from 20 August to 31 August 2018.

‘Quick start up times, lower maintenance costs are two of the reasons why electric boilers are ideal technology for optimising energy use during standard and off-peak time-of-use periods,’ says Eskom spokesperson Khulu Phasiwe.

Eskom Energy Advisors are on standby to assist customers who wish to participate. Requests for information and assistance can also be e-mailed to