Current and Forthcoming Issues in the South African Electricity Sector

One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Es...

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Main Authors: Kessides, Ioannis N., Bogetic, Zeljko, Maurer, Luiz
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
OIL
Online Access:http://documents.worldbank.org/curated/en/2007/04/7524355/current-forthcoming-issues-south-african-electricity-sector
http://hdl.handle.net/10986/7026
id okr-10986-7026
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ASSET MANAGEMENT
AVAILABILITY
AVERAGE TARIFF
BALANCE
CAPACITY EXPANSION
CAPITAL INVESTMENT
CAPITAL INVESTMENT COSTS
CATASTROPHIC FAILURE
COAL
COAL GAS
COAL PRODUCER
COAL RESERVES
COMMERCIAL CUSTOMERS
COMPETITIVE BIDDING
CONSUMER OF COAL
CONSUMER PRICE INDEX
COST RECOVERY
DISTRIBUTION ASSETS
DISTRIBUTION BUSINESSES
DISTRIBUTION COMPANIES
DISTRIBUTION FACILITIES
DISTRIBUTION NETWORK
DISTRIBUTION SYSTEM
ECONOMIC COSTS
ECONOMIC DEVELOPMENT
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
ECONOMIES OF SCALE
ELECTRIC POWER
ELECTRIC POWER DISTRIBUTION
ELECTRIC UTILITIES
ELECTRICAL ENERGY
ELECTRICAL GENERATION
ELECTRICAL GRID
ELECTRICAL POWER
ELECTRICITY
ELECTRICITY CONSUMPTION
ELECTRICITY DISTRIBUTION
ELECTRICITY DISTRIBUTION NETWORKS
ELECTRICITY EXCHANGE
ELECTRICITY GENERATION
ELECTRICITY INDUSTRY
ELECTRICITY MARKET
ELECTRICITY MARKETS
ELECTRICITY NETWORKS
ELECTRICITY PRICES
ELECTRICITY REFORMS
ELECTRICITY REGULATION
ELECTRICITY REGULATOR
ELECTRICITY RESTRUCTURING
ELECTRICITY REVENUE
ELECTRICITY SALES
ELECTRICITY SECTOR
ELECTRICITY SERVICES
ELECTRICITY SUPPLY
ELECTRICITY SYSTEM
ELECTRICITY SYSTEMS
ELECTRICITY TARIFFS
ELECTRICITY UTILITIES
ELECTRIFICATION
ENERGY GENERATION
ENERGY LOSSES
ENERGY POLICIES
ENERGY POLICY
ENERGY RESEARCH
ENERGY SOURCES
ENERGY SUPPLY
ENVIRONMENTAL CHALLENGES
ENVIRONMENTAL IMPLICATIONS
ENVIRONMENTAL PERFORMANCE
EXCESS POWER
FINAL CUSTOMERS
FINANCIAL VIABILITY
FOREIGN CURRENCY DEBT
FOREIGN INVESTORS
GAS FIELDS
GAS TURBINE
GAS TURBINES
GENERATING CAPACITY
GENERATING UNITS
GENERATION
GENERATION OF ELECTRICITY
GOVERNMENT GUARANTEES
GROWTH IN DEMAND
HYDROELECTRIC STATIONS
HYDROPOWER
INCOME
INFRASTRUCTURE PERFORMANCE
INTERNATIONAL CAPITAL MARKETS
INTERNATIONAL COMPETITIVENESS
INTERNATIONAL ENERGY
INTERNATIONAL ENERGY AGENCY
INVESTMENT INCENTIVES
INVESTMENT PROGRAM
KEROSENE
NATURAL GAS
NETWORK PLANNING
NUCLEAR POWER
NUCLEAR POWER STATION
OIL
PEAK DEMAND
PEAK POWER
PEAK POWER GENERATION
PERFORMANCE INDICATORS
PLANT PERFORMANCE
PLANT RELIABILITY
POWER
POWER DISTRIBUTION
POWER PLANT
POWER PLANT CONSTRUCTION
POWER SECTOR
POWER SECTOR REFORM
POWER SHORTAGES
POWER STATION
POWER STATIONS
POWER SYSTEM
PRICE INCREASES
PRICE OF ELECTRICITY
PRIMARY ENERGY
PRIMARY FUEL
PRIVATE SECTOR PARTICIPATION
PUBLIC UTILITY
RECOVERABLE COAL
RENEWABLE ENERGY
RENEWABLE ENERGY RESOURCES
RESIDENTIAL CUSTOMERS
RETAIL ELECTRICITY
RURAL ELECTRIFICATION
SUPPLY INTERRUPTIONS
SUPPLY OF ELECTRICITY
SURPLUS CAPACITY
SYNTHETIC FUELS
TARIFF ADJUSTMENTS
TAX RATE
TRANSMISSION ASSETS
TRANSMISSION CAPACITY
TURBINE GENERATOR
TURBINE GENERATORS
VOLTAGE
WORLD ENERGY
WORLD OIL
spellingShingle ASSET MANAGEMENT
AVAILABILITY
AVERAGE TARIFF
BALANCE
CAPACITY EXPANSION
CAPITAL INVESTMENT
CAPITAL INVESTMENT COSTS
CATASTROPHIC FAILURE
COAL
COAL GAS
COAL PRODUCER
COAL RESERVES
COMMERCIAL CUSTOMERS
COMPETITIVE BIDDING
CONSUMER OF COAL
CONSUMER PRICE INDEX
COST RECOVERY
DISTRIBUTION ASSETS
DISTRIBUTION BUSINESSES
DISTRIBUTION COMPANIES
DISTRIBUTION FACILITIES
DISTRIBUTION NETWORK
DISTRIBUTION SYSTEM
ECONOMIC COSTS
ECONOMIC DEVELOPMENT
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
ECONOMIES OF SCALE
ELECTRIC POWER
ELECTRIC POWER DISTRIBUTION
ELECTRIC UTILITIES
ELECTRICAL ENERGY
ELECTRICAL GENERATION
ELECTRICAL GRID
ELECTRICAL POWER
ELECTRICITY
ELECTRICITY CONSUMPTION
ELECTRICITY DISTRIBUTION
ELECTRICITY DISTRIBUTION NETWORKS
ELECTRICITY EXCHANGE
ELECTRICITY GENERATION
ELECTRICITY INDUSTRY
ELECTRICITY MARKET
ELECTRICITY MARKETS
ELECTRICITY NETWORKS
ELECTRICITY PRICES
ELECTRICITY REFORMS
ELECTRICITY REGULATION
ELECTRICITY REGULATOR
ELECTRICITY RESTRUCTURING
ELECTRICITY REVENUE
ELECTRICITY SALES
ELECTRICITY SECTOR
ELECTRICITY SERVICES
ELECTRICITY SUPPLY
ELECTRICITY SYSTEM
ELECTRICITY SYSTEMS
ELECTRICITY TARIFFS
ELECTRICITY UTILITIES
ELECTRIFICATION
ENERGY GENERATION
ENERGY LOSSES
ENERGY POLICIES
ENERGY POLICY
ENERGY RESEARCH
ENERGY SOURCES
ENERGY SUPPLY
ENVIRONMENTAL CHALLENGES
ENVIRONMENTAL IMPLICATIONS
ENVIRONMENTAL PERFORMANCE
EXCESS POWER
FINAL CUSTOMERS
FINANCIAL VIABILITY
FOREIGN CURRENCY DEBT
FOREIGN INVESTORS
GAS FIELDS
GAS TURBINE
GAS TURBINES
GENERATING CAPACITY
GENERATING UNITS
GENERATION
GENERATION OF ELECTRICITY
GOVERNMENT GUARANTEES
GROWTH IN DEMAND
HYDROELECTRIC STATIONS
HYDROPOWER
INCOME
INFRASTRUCTURE PERFORMANCE
INTERNATIONAL CAPITAL MARKETS
INTERNATIONAL COMPETITIVENESS
INTERNATIONAL ENERGY
INTERNATIONAL ENERGY AGENCY
INVESTMENT INCENTIVES
INVESTMENT PROGRAM
KEROSENE
NATURAL GAS
NETWORK PLANNING
NUCLEAR POWER
NUCLEAR POWER STATION
OIL
PEAK DEMAND
PEAK POWER
PEAK POWER GENERATION
PERFORMANCE INDICATORS
PLANT PERFORMANCE
PLANT RELIABILITY
POWER
POWER DISTRIBUTION
POWER PLANT
POWER PLANT CONSTRUCTION
POWER SECTOR
POWER SECTOR REFORM
POWER SHORTAGES
POWER STATION
POWER STATIONS
POWER SYSTEM
PRICE INCREASES
PRICE OF ELECTRICITY
PRIMARY ENERGY
PRIMARY FUEL
PRIVATE SECTOR PARTICIPATION
PUBLIC UTILITY
RECOVERABLE COAL
RENEWABLE ENERGY
RENEWABLE ENERGY RESOURCES
RESIDENTIAL CUSTOMERS
RETAIL ELECTRICITY
RURAL ELECTRIFICATION
SUPPLY INTERRUPTIONS
SUPPLY OF ELECTRICITY
SURPLUS CAPACITY
SYNTHETIC FUELS
TARIFF ADJUSTMENTS
TAX RATE
TRANSMISSION ASSETS
TRANSMISSION CAPACITY
TURBINE GENERATOR
TURBINE GENERATORS
VOLTAGE
WORLD ENERGY
WORLD OIL
Kessides, Ioannis N.
Bogetic, Zeljko
Maurer, Luiz
Current and Forthcoming Issues in the South African Electricity Sector
geographic_facet Africa
South Africa
relation Policy Research Working Paper; No. 4197
description One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency.
format Publications & Research :: Policy Research Working Paper
author Kessides, Ioannis N.
Bogetic, Zeljko
Maurer, Luiz
author_facet Kessides, Ioannis N.
Bogetic, Zeljko
Maurer, Luiz
author_sort Kessides, Ioannis N.
title Current and Forthcoming Issues in the South African Electricity Sector
title_short Current and Forthcoming Issues in the South African Electricity Sector
title_full Current and Forthcoming Issues in the South African Electricity Sector
title_fullStr Current and Forthcoming Issues in the South African Electricity Sector
title_full_unstemmed Current and Forthcoming Issues in the South African Electricity Sector
title_sort current and forthcoming issues in the south african electricity sector
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/04/7524355/current-forthcoming-issues-south-african-electricity-sector
http://hdl.handle.net/10986/7026
_version_ 1764401777603510272
spelling okr-10986-70262021-04-23T14:02:33Z Current and Forthcoming Issues in the South African Electricity Sector Kessides, Ioannis N. Bogetic, Zeljko Maurer, Luiz ASSET MANAGEMENT AVAILABILITY AVERAGE TARIFF BALANCE CAPACITY EXPANSION CAPITAL INVESTMENT CAPITAL INVESTMENT COSTS CATASTROPHIC FAILURE COAL COAL GAS COAL PRODUCER COAL RESERVES COMMERCIAL CUSTOMERS COMPETITIVE BIDDING CONSUMER OF COAL CONSUMER PRICE INDEX COST RECOVERY DISTRIBUTION ASSETS DISTRIBUTION BUSINESSES DISTRIBUTION COMPANIES DISTRIBUTION FACILITIES DISTRIBUTION NETWORK DISTRIBUTION SYSTEM ECONOMIC COSTS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIES OF SCALE ELECTRIC POWER ELECTRIC POWER DISTRIBUTION ELECTRIC UTILITIES ELECTRICAL ENERGY ELECTRICAL GENERATION ELECTRICAL GRID ELECTRICAL POWER ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION NETWORKS ELECTRICITY EXCHANGE ELECTRICITY GENERATION ELECTRICITY INDUSTRY ELECTRICITY MARKET ELECTRICITY MARKETS ELECTRICITY NETWORKS ELECTRICITY PRICES ELECTRICITY REFORMS ELECTRICITY REGULATION ELECTRICITY REGULATOR ELECTRICITY RESTRUCTURING ELECTRICITY REVENUE ELECTRICITY SALES ELECTRICITY SECTOR ELECTRICITY SERVICES ELECTRICITY SUPPLY ELECTRICITY SYSTEM ELECTRICITY SYSTEMS ELECTRICITY TARIFFS ELECTRICITY UTILITIES ELECTRIFICATION ENERGY GENERATION ENERGY LOSSES ENERGY POLICIES ENERGY POLICY ENERGY RESEARCH ENERGY SOURCES ENERGY SUPPLY ENVIRONMENTAL CHALLENGES ENVIRONMENTAL IMPLICATIONS ENVIRONMENTAL PERFORMANCE EXCESS POWER FINAL CUSTOMERS FINANCIAL VIABILITY FOREIGN CURRENCY DEBT FOREIGN INVESTORS GAS FIELDS GAS TURBINE GAS TURBINES GENERATING CAPACITY GENERATING UNITS GENERATION GENERATION OF ELECTRICITY GOVERNMENT GUARANTEES GROWTH IN DEMAND HYDROELECTRIC STATIONS HYDROPOWER INCOME INFRASTRUCTURE PERFORMANCE INTERNATIONAL CAPITAL MARKETS INTERNATIONAL COMPETITIVENESS INTERNATIONAL ENERGY INTERNATIONAL ENERGY AGENCY INVESTMENT INCENTIVES INVESTMENT PROGRAM KEROSENE NATURAL GAS NETWORK PLANNING NUCLEAR POWER NUCLEAR POWER STATION OIL PEAK DEMAND PEAK POWER PEAK POWER GENERATION PERFORMANCE INDICATORS PLANT PERFORMANCE PLANT RELIABILITY POWER POWER DISTRIBUTION POWER PLANT POWER PLANT CONSTRUCTION POWER SECTOR POWER SECTOR REFORM POWER SHORTAGES POWER STATION POWER STATIONS POWER SYSTEM PRICE INCREASES PRICE OF ELECTRICITY PRIMARY ENERGY PRIMARY FUEL PRIVATE SECTOR PARTICIPATION PUBLIC UTILITY RECOVERABLE COAL RENEWABLE ENERGY RENEWABLE ENERGY RESOURCES RESIDENTIAL CUSTOMERS RETAIL ELECTRICITY RURAL ELECTRIFICATION SUPPLY INTERRUPTIONS SUPPLY OF ELECTRICITY SURPLUS CAPACITY SYNTHETIC FUELS TARIFF ADJUSTMENTS TAX RATE TRANSMISSION ASSETS TRANSMISSION CAPACITY TURBINE GENERATOR TURBINE GENERATORS VOLTAGE WORLD ENERGY WORLD OIL One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency. 2012-06-04T18:34:05Z 2012-06-04T18:34:05Z 2007-04 http://documents.worldbank.org/curated/en/2007/04/7524355/current-forthcoming-issues-south-african-electricity-sector http://hdl.handle.net/10986/7026 English Policy Research Working Paper; No. 4197 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa South Africa