Business model

 Esco Model 

Energy Service Companies (ESCos) who are accredited byEskom operate by establishing a three-way partnershipbetween themselves, Eskom and the customer, and use their knowledge of DSMtechnologies and programmes to determine the best way of obtaining results atcustomer premises. 

Theseorganisations are experts within targeted vertical markets, capable ofidentifying opportunities for achieving reductions in electricity consumption,and scoping and executing such projects. 

To participate in the funding programme, the ESCosubmits a proposal on potential energy of >200kW which EEDSM reviews on itstechnical and financial merits, as well as, energy savings potential.  Once a contract has been signed, theESCo is given the go-ahead to implement the project. 

Eskom DSM supports ESCo projects by funding up to 100% of thefinancial benchmark value for viable energy efficiency projects according tothe financial benchmark as set out below.  

In order to ensure that ESCo projects deliver thepromised savings, there are penalty clauses in place which ensure that whenESCos scope projects, they do so accurately to ensure that projectedconsumption savings are in fact achieved.