The Economic Impact of Electricity Price Increases on ... - Eskom

Mining and quarrying emerges as the sector with the greatest reliance
on electricity, with electricity accounting for almost 5% <strong>of</strong> the sectors
total input costs
16
-
Mining and quarrying
-
Transport, storage and communication
-
Wholesale and retail
-
Manufacturing
-
Agriculture, forestry
-
Other services (gov &
-
Finance, real estate
-
Construction
-
-
Direct electricity costs as a proportion <strong>of</strong> total input costs
• Interestingly, the ratio <strong>of</strong> electricity costs to total input costs is higher for the transport, storage and communication and
wholesale\retail trade sectors than is it for manufacturing which one would typically expect to be more reliant on electricity
• This however is probably because <strong>of</strong> the considerable variation in reliance on electricity within the manufacturing sector
Value <strong>of</strong> electricity consumed expressed as a percentage <strong>of</strong> intermediate inputs
Source: Chamber <strong>of</strong> Mines in (Pan-African Investment & Research Services, Eskom, May 2011)
1 2 3 4 5 6
%
Vulnerability <strong>of</strong>
sectors to rising
electricity prices
In the Construction industry, which is at the other end <strong>of</strong> the spectrum, direct electricity costs are less than 0.5% <strong>of</strong>
total input costs.
©2012 Deloitte Touche Tohmatsu Limited. All rights reserved.
2