The impact of electricity price increases and rationing on the South African economy

Abstract

This report assesses the economic impact of electricity cuts on the South African economy. The study investigates the potential economic impact of differently distributed pricing or rationing options aimed at reducing peak electricity usage and electricity consumption. More specifically, the objective was to: - Assess the economy-wide impact of a reduction in electricity use of up to 10%, differently distributed across the main economic sectors and users. - Assess the potential for short- and medium-term improvements in energy use by large consumers. The study also considers the potential impact of different pricing proposals on Eskom itself.