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Briefing

South Africa Electricity Dilemma

Critical Issues

Background:

In 2008 worsening electricity shortages halted mining operations, propelled gold and platinum prices to record highs and deterred foreign investment. Policies designed to expand the economy brought unintended consequences such as the power crisis. The State owned power utility Eskom could not meet demand after the government delayed an expansion decision by four years. In 2010 Eskom proposed to raise electricity tariffs by 35% over a three year period to finance the shortfall in its expansion program.

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Associated Readings

Analysis Article Alley Reshall Jimmy Jan 14, 2010 Eskom And Other Home Cost Effects