Template-Type: ReDIF-Paper 1.0
Author-Name: Zaakirah Ismail
Author-Name: Christopher Wood
Title: Special Occasional Bulletin of Economic Notes 2301 Review of Administered Prices in South Africa The Electricity Tariff
Abstract: The current electricity pricing regime ties prices to Eskoms costs, with decades of mismanagement and crisis spending passed along to consumers. Despite this, efforts to contain costs risk undermining the capacity for reform at Eskom, by cutting off funding needed for key interventions like buying diesel. There is limited scope for reforming the electricity pricing regime to resolve this impasse  the trade-off is real and has no obvious resolution. Implementing reforms to the electricity market is likely the only route to truly resolving this impasse, but this is a very complex process that will take a long time to complete. There is clear scope for Eskom to improve efficiencies, but given the governance inertia and active resistance to change at Eskom, it is unlikely that this will be realised quickly. Improving municipal financing regimes, and strengthening measures to protect vulnerable consumers, could be one route to increasing prices while cushioning the inflationary impact.
Creation-Date: 2023-08-07
File-URL: https://www.resbank.co.za/content/dam/sarb/publications/special-occasional-bulletins/2023/special-occasional-bulletin-of-economic-notes-2301-review-of-administered-prices-in-south-africa-the-electricity-tariff-august-2023.pdf
File-Format: application/pdf
File-Function: Revision
Number: 11002
Handle: RePEc:rbz:specialoboens:11002