South Africa's Corporates Are Bleeding Money on Energy. Here's How Open Access Energy Is Helping Them Stop That

Eskom tariffs have increased by 937% since 2007, while load-shedding cost the South African economy R2.8 trillion in 2023 alone. Yet most large energy users are still buying power the same way they did a decade ago: locked into inflexible contracts with limited visibility into what they're actually paying for.

But a growing number of corporates are doing something different. They are  treating energy like any other strategic procurement decision, comparing suppliers, locking in long-term price stability, and meeting sustainability targets without building a single solar panel. And they're doing it through Open Access Energy's Energypro platform.

"For the first time, large energy users can compare offers from multiple suppliers on equal terms, the way you'd compare any other vendor," says Gerjo Hoffman, CEO of Open Access Energy. "The infrastructure to make energy procurement transparent and strategic finally exists."

The shift is being driven by wheeling, a mechanism that allows companies to buy renewable electricity from Independent Power Producers (IPPs) and Energy Traders anywhere in the country and have it delivered through the national grid. It's been legally possible for years. What's changed is that platforms like Energypro now make it workable at scale.

The problem until now has been opacity. Energy procurement has historically been a closed process. Tariffs vary wildly between suppliers. Contract structures are inconsistent. Buyers have little transparency into what they're actually committing to, and even less ability to compare one deal against another.

"A mining company might get multiple proposals that look completely different on paper, different contract lengths, different risk allocations, different pricing mechanisms," Hoffman explains. "Without a standardised way to compare them against your actual consumption profile, you're flying blind. And in energy, getting it wrong locks you into high costs for 5 to 25 years."

Open Access Energy's solution is deceptively simple: standardise the proposals and run them against a buyer's real consumption data. Instead of spending weeks manually comparing spreadsheets, companies can see within minutes what each offer will actually cost them, what the risk exposure looks like, and whether it aligns with their sustainability commitments.

It's not theoretical. One large energy consumer used Energypro to evaluate six competing offers, identified a deal that would deliver significant cost savings compared to their Eskom baseline, and structured a contract that locked in renewable energy supply for the next decade. Another corporate buyer discovered through the comparison process that the cheapest upfront offer carried significantly higher risk exposure during peak demand periods, a cost that only became visible when modelled against their actual usage patterns.

The broader shift is being driven by necessity. South Africa faces a 4,000 to 6,000 megawatt energy shortfall, even as more than 7,000MW of private renewable generation capacity has been registered. Companies that secure structured market deals now are locking in price stability while Eskom tariffs continue to climb. They're also meeting ESG requirements that are increasingly non-negotiable for investors and international customers.

"Electricity used to be a cost you just accepted," says Hoffman. "Now it's a competitive advantage if you get it right, and a liability if you don't."

The timing matters. Mining alone accounts for up to 30% of Eskom's power supply, making it one of the country's largest energy consumers. As the market liberalises, early movers are securing the best deals while supply is still being added. Those who wait risk facing tighter supply, higher prices, and fewer options.

But the barrier for many companies isn't conviction, it's confidence. Energy procurement is unfamiliar territory for most finance and operations teams. The fear of making the wrong call in a complex, high-stakes market keeps many buyers on the sidelines.

That's where Open Access Energy is changing the equation. Through its Buyers Programme, the company runs a structured one-month tender process that defines buyer requirements, standardises all offers from competing suppliers, and ensures transparent comparison. By making the process data-driven and comparable, they're removing the guesswork that's kept many corporates stuck with expensive, inflexible power contracts.

"The market is opening whether companies are ready or not," Hoffman says. "The question is whether you're going to participate strategically, or reactively."

For South Africa, the stakes extend beyond individual balance sheets. A more transparent, competitive electricity market accelerates renewable energy adoption, reduces strain on the national grid, and gives the country's industrial base the cost stability it needs to compete globally.

The companies acting now, by exploring wheeling through platforms like Energypro, engaging with multiple sellers, and using data to drive decisions, aren't just cutting costs. They're building resilience into their operations and shaping what South Africa's energy future will look like.

As Hoffman puts it: "This isn't about who can build the biggest solar farm. It's about who can make the smartest energy decisions. And the tools to do that finally exist."