Public procurement notice: Contract Award Notice
Published: 2021-02-16
Buyer: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Country: DE
Contract type: Services
Procedure: Competitive procedure with negotiation
CPV classification: 71314000: Energy and related services | 71314200: Energy management services | 71314300: Energy-efficiency consultancy services
Estimated value: 691315.78 EUR
Award criteria: The most economic tender

Technical requirements: The South African German Energy Programme (SAGEN), implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and funded by the BMZ supports the South African electricity distribution industry in its efforts to sustainably embrace the energy transition through the project ‘Enabling viable and resilient electricity distribution utilities in South Africa through cost of supply studies (COS) and pricing framework analyses’.
GIZ is seeking to procure the services of a consulting firm to undertake the scope of work which is structured in six work packages
5) Develop COS support tools/guidelines and undertake engagements with other municipal distributors; and
In order to sustainably embrace the energy transition in South Africa, electricity distribution utilities need to, amongst others, accurately reflect and allocate costs which are then transferred into price signals and recovered through accurate electricity tariffs; consider new business models and position themselves for creating a fair, efficient and clean electric system of the future. A significant enabler is the regulatory framework, which currently has led to various approaches to undertake cost studies leading to results that are difficult to compare.
To assist, the South African German Energy Programme — Capacities for an Energy Transition (SAGEN-CET), implemented by implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) supports the South African electricity distribution industry in its efforts to transition towards greater sustainability through the project, ‘Enabling viable and resilient electricity distribution utilities in South Africa through cost of supply studies and pricing framework analyses’ (the Project).
— addressing and improving the Electricity distribution pricing and Cost-of-Supply (COS) frameworks for the transition to cost-reflective tariffs;
— establishing a uniform COS studies and tariff setting methodology for electricity distributors to accurately reflect and recover costs;
— supporting capacity building in the form of tariff designing and financial model training in electricity distribution utilities;
— reflecting of the change in the power system towards increased decentralised generation in cost allocation methods including recommendations on balancing the needs of all customers in a fair and equitable manner;
— determining a new path on cost allocation for creating a fair, efficient and clean electric system of the future;
— supporting thought leadership on electricity distribution pricing-related challenges and addressing the enabling environment through supporting policy/strategy solutions;
(i) electricity distribution utilities with the unbundling of tariffs to ensure sustainability as well as;
(ii) private participation with regulated, non-discriminatory and cost-reflective network charges; and
— providing technical input to national departments, the energy regulator, industry associations and electricity utilities to further develop and implement the electricity distribution pricing framework and COS framework.
Stakeholders in South Africa have been engaged for several years in discussing and exploring the strengthening of a cost of supply approach and appropriate tariff systems. The need for institutional cooperation is undisputable thus as an integral part of this project, a Working Group consisting of key stakeholder representatives has been established to manage and oversee the Project implementation and outcomes.


Winner: Ricardo Energy and Environment
Award value: 691315.78
Number of bids: 5