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

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Summary <str<strong>on</strong>g>of</str<strong>on</strong>g> Key Findings<br />

28<br />

HSRC, 2008<br />

Pan African<br />

(2011)<br />

Deloitte<br />

(2009)*<br />

Deutsche<br />

Securities<br />

(2010)<br />

GWh/$milli<strong>on</strong> kWh/R GDP<br />

Inglesi-Lotz &<br />

Blignaut (2011b)<br />

C<strong>on</strong>ningarth<br />

(2011)<br />

Agriculture, forestry and fishing 1.1 1.5 0.316 0.16<br />

Deloitte<br />

(2009)*<br />

Deutsche<br />

Securities<br />

(2010)<br />

Mining and Quarrying 2.5 5 8 6.7 0.634* 0.32* No No No<br />

Gold Mining 4.8 10.2 No<br />

Platinum Mining 5.1 To a degree<br />

Other\Diversified Mining 2 4.3 No<br />

Coal Mining 1 < 4<br />

Manufacturing 1.5 1.7 0.33*<br />

Frost &<br />

Sullivan<br />

(June 2011)<br />

Other manufacturing (average) 1.3 0.082 To a degree To a degree<br />

Chemicals and petrochemicals 1 to 4 9 6 0.203 Yes<br />

Paper and pulp 0.8 5 to 9 3 to 5 0.207 No<br />

Food and Beverages 1.4 2.3 0.021 To a degree<br />

Cement 2.1 10 to 15 5 Yes<br />

Packaging (paper, glass etc) 0.3 4 To a degree<br />

Metal manufacturing (average) 3.1 17 1.095 Limited No<br />

Ferrochrome 20 21 Yes No<br />

N<strong>on</strong>-ferrous metals 11<br />

<str<strong>on</strong>g>Electricity</str<strong>on</strong>g>, gas and w ater 4.9 Yes<br />

C<strong>on</strong>structi<strong>on</strong> 0.3 0.2 0.4 0.002 To a degree<br />

Services Sectors<br />

Wholesale and Retail Trade 0.6 2 1 to 4 To a degree Yes<br />

Transport, storage and<br />

telecommunicati<strong>on</strong><br />

0.3 to 1.2 2.2 0.1 to 1 0.089 0.04 To a degree To a degree<br />

Finance and business services 0.1 to 0.9 1.1 0.8 to 1 0.03 Yes Yes<br />

Real estate and Accomodati<strong>on</strong> 0.7 to 4 1.1 22 To a degree<br />

Community, social and pers<strong>on</strong>al<br />

services<br />

Overall<br />

vulnerability<br />

ranking<br />

<str<strong>on</strong>g>Electricity</str<strong>on</strong>g> as % <str<strong>on</strong>g>of</str<strong>on</strong>g> total operating costs<br />

Value <str<strong>on</strong>g>of</str<strong>on</strong>g> electricity<br />

c<strong>on</strong>sumed as % <str<strong>on</strong>g>of</str<strong>on</strong>g> total<br />

intermediate inputs<br />

0.2 to 0.5 1.3<br />

<str<strong>on</strong>g>Electricity</str<strong>on</strong>g> costs as % <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

total operating costs<br />

<str<strong>on</strong>g>Electricity</str<strong>on</strong>g> Intensity<br />

Vulnerability <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

sectors to rising<br />

electricity prices<br />

Able to pass <strong>on</strong> costs?<br />

©2012 Deloitte Touche Tohmatsu Limited. All rights reserved.<br />

2

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