Trade and Industry

Monday, 11 June 2007

Economic regulation of the electricity industry: a balancing act

  • Year: 2007
  • Organisation: TIPS
  • Author(s): Cornel van Basten
  • Countries and Regions: South Africa

No-one can dispute that electricity is an essential input to production and economic growth in South-Africa.

Eskom, a wholly state-owned utility dominates electricity generation, it supplies approximately 95% of South Africa's electricity. The Electricity Supply Industry (ESI) has been facing numerous uncertainties during the past decade. This included aspects such as the restructuring of the industry, the regulatory environment (specifically the methodologies used to approve prices and tariff structures), potential of new market players as well as other issues, including environmental and social objectives.