The Economic Impact of Electricity Price Increases on ... - Eskom
The Economic Impact of Electricity Price Increases on ... - Eskom
The Economic Impact of Electricity Price Increases on ... - Eskom
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Growth in electricity c<strong>on</strong>sumpti<strong>on</strong> from 1980 to 2008 was largely due to<br />
increased demand from a few large manufacturers and from<br />
redistributors (municipalities) who primarily supply residential and<br />
Thousands<br />
commercial customers<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
Thousands<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
7<br />
<strong>Eskom</strong> direct sales <str<strong>on</strong>g>of</str<strong>on</strong>g> electricity to the<br />
mining sector (1980-2008)<br />
1980 1985 1990 1995 2000 2003 2006 2008<br />
Rest <str<strong>on</strong>g>of</str<strong>on</strong>g> Mining<br />
Chrome Mining<br />
Diam<strong>on</strong>d Mining<br />
Copper Mining<br />
Ir<strong>on</strong> Ore Mining<br />
Coal Mining<br />
Platinum Mining<br />
Gold Mining<br />
Source: (Deloitte , 2009), <strong>Eskom</strong> Source: (Deloitte , 2009), <strong>Eskom</strong><br />
Trend in <strong>Eskom</strong> sales by category <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
customer (1980-2008)<br />
1980 1985 1990 1995 2000 2003 2006 2008<br />
Source: (Deloitte , 2009), <strong>Eskom</strong><br />
Residential<br />
Redistributors<br />
Industry<br />
Mining<br />
Agriculture<br />
Thousands<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
<strong>Eskom</strong> direct sales <str<strong>on</strong>g>of</str<strong>on</strong>g> electricity to the<br />
manufacturing sector (1980-2008)<br />
1980 1985 1990 1995 2000 2003 2006 2008<br />
Current Structure<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> SA Ec<strong>on</strong>omy<br />
Rest <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
Manufacturing<br />
Precious & N<strong>on</strong>ferrous<br />
metals<br />
Ir<strong>on</strong> & Steel<br />
Chemicals<br />
Key points<br />
• In 2008 Gold was still the dominant c<strong>on</strong>sumer <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
electricity in the mining industry.<br />
• Decreases in gold mining c<strong>on</strong>sumpti<strong>on</strong> since 1990 have<br />
been replaced with platinum c<strong>on</strong>sumpti<strong>on</strong> so that<br />
overall, c<strong>on</strong>sumpti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> electricity by the mining sector<br />
has remained relatively stable since the 1990s.<br />
• By c<strong>on</strong>trast sales <str<strong>on</strong>g>of</str<strong>on</strong>g> electricity to the manufacturing<br />
sector increased sharply from 1980 to 2008 driven<br />
mainly by growth and increased c<strong>on</strong>sumpti<strong>on</strong> by the<br />
n<strong>on</strong>-ferrous metals and ir<strong>on</strong> and steel sub-sectors<br />
©2012 Deloitte Touche Tohmatsu Limited. All rights reserved.<br />
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