A new digital energy solution aims to empower rural and under-resourced municipalities to reap the benefits of digital energy systems.

As South Africa’s electricity market evolves and creates new opportunities for smart energy management and cost optimisation, smaller municipalities are finding themselves at a disadvantage compared to well-resourced metros, says Utility Consulting Services (UTCS).

The company explains that the implementation of the Electricity Regulation Amendment Act (ERAA) has resulted in the existence of a two-tier system where large metros with big budgets and in-house expertise can use sophisticated trading platforms to secure better electricity rates and generate additional revenue, whereas smaller municipalities often lack financial resources, technical infrastructure, and specialised staff, leaving them trapped in outdated procurement models with higher costs and weaker energy security.

For many smaller municipalities, the barriers to smart energy management are high, says UTCS CEO Christo Nicholls. He explains that traditional enterprise platforms require large upfront investment, ongoing maintenance, and dedicated technical staff – all of which are unaffordable for rural municipalities. Implementation often demands costly consultants and lengthy deployment periods. Even when basic systems are acquired, many municipalities lack the technical expertise to unlock real savings. In addition, independent power producers and alternative suppliers tend to focus on metros where contracts are larger and sales more profitable.

UTCS has developed a scalable, cloud-based platform that it says delivers enterprise-level capabilities at price points accessible to municipalities of any size. By eliminating the need for major infrastructure investments, the system aims to give rural municipalities access to the same advanced trading algorithms, real-time optimisation tools, and compliance monitoring used by South Africa’s largest cities.

"Our platform democratises access to smart energy management," Nicholls asserts. "A small rural municipality now has the same trading algorithms, market analysis, and optimisation capabilities as a metro. The technology doesn’t care about budget size - it simply delivers the best possible procurement and trading outcomes for every client."

The solution is backed by support services tailored for municipalities with limited technical capacity. Automated decision-making protocols reduce the need for specialist trading expertise, while 24/7 monitoring and simplified dashboards help municipal staff manage portfolios without the need for extensive training.

UTCS says its implementation support includes change management, staff training, and ongoing consultation, aimed at helping municipalities transition from legacy procurement models to advanced trading strategies. Built-in compliance monitoring ensures full alignment with energy trading regulations, even for municipalities without in-house legal or regulatory staff.

The company says its digital platform, with its 30-minute interval data validation and real-time market analysis, has enabled rural municipalities to access competitive electricity rates once reserved for metros with greater bargaining power.

The platform is designed to scale gradually, allowing municipalities to begin with basic optimisation and add more advanced capabilities over time – helping to deliver immediate cost savings while laying the foundation for more complex trading strategies in future.