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

Summary <strong>of</strong> Key Findings
Community, social and personal
services
34 Deloitte
Pr<strong>of</strong>it Vulnerability
Max % increase in real electricity
prices that industry can absorb
25% for 3yrs and
6% for 7yrs
Pan African (2011)
TSME Model
25% price increase
- low er estimate
Pan African (2011)
CGE Model
25% for 3yrs and
6% for 7yrs
Pan African (2011)
TSME Model
25% price increase
- low er estimate
Pan African (2011)
CGE Model
Agriculture, forestry and fishing 10% to 550% (320% on average) -0.05% -1.39% -1.77% -1.32%
Mining and Quarrying 10% to 400% (105% on average) -1.83% -1.62% -4.38% -1.76%
Gold Mining 10% -1.60% -1.80%
Platinum Mining 20%
Other\Diversified Mining 10% to 250%
Coal Mining 400% -0.20% 0.50%
Manufacturing 10% to 450% (141% on average) -0.23% -5.29% -2.16% -4.55%
Other manufacturing (average)
Chemicals and petrochemicals 60% q-0.1% to -0.6% 0.1% to -0.5%
Paper and pulp 10% 0% 0.40%
Food and Beverages 250% to 350% -1% -0.90%
Cement
Packaging (paper, glass etc)
Metal manufacturing (average) 10% to 200%
Ferrochrome 10%
Non-ferrous metals 10% -4.60% -3.70%
<strong>Electricity</strong>, gas and w ater 9.3% 11.1%
Construction -0.30% -0.21% -0.98% 0.63%
Services Sectors
Wholesale and Retail Trade -0.64% -1.37% -1.44% -0.81%
Transport, storage and
telecommunication
Overall
vulnerability
ranking
<strong>Impact</strong> <strong>of</strong> electricity price
increase on output
<strong>Impact</strong> <strong>of</strong> rising
electricity prices on
different sectors
<strong>Impact</strong> <strong>of</strong> electricity price
increase on employment
-0.80% -1.95% -3.02% -1.53%
Finance and business services -0.22% -1.84% -0.71% -1.13%
Real estate and Accomodation -2.00% -1.10%
-2.91% -1.68%
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