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

Growth in electricity consumption from 1980 to 2008 was largely due to
increased demand from a few large manufacturers and from
redistributors (municipalities) who primarily supply residential and
Thousands
commercial customers
40
35
30
25
20
15
10
5
0
Thousands
200
180
160
140
120
100
80
60
40
20
0
7
Eskom direct sales <strong>of</strong> electricity to the
mining sector (1980-2008)
1980 1985 1990 1995 2000 2003 2006 2008
Rest <strong>of</strong> Mining
Chrome Mining
Diamond Mining
Copper Mining
Iron Ore Mining
Coal Mining
Platinum Mining
Gold Mining
Source: (Deloitte , 2009), Eskom Source: (Deloitte , 2009), Eskom
Trend in Eskom sales by category <strong>of</strong>
customer (1980-2008)
1980 1985 1990 1995 2000 2003 2006 2008
Source: (Deloitte , 2009), Eskom
Residential
Redistributors
Industry
Mining
Agriculture
Thousands
70
60
50
40
30
20
10
0
Eskom direct sales <strong>of</strong> electricity to the
manufacturing sector (1980-2008)
1980 1985 1990 1995 2000 2003 2006 2008
Current Structure
<strong>of</strong> SA Economy
Rest <strong>of</strong>
Manufacturing
Precious & Nonferrous
metals
Iron & Steel
Chemicals
Key points
• In 2008 Gold was still the dominant consumer <strong>of</strong>
electricity in the mining industry.
• Decreases in gold mining consumption since 1990 have
been replaced with platinum consumption so that
overall, consumption <strong>of</strong> electricity by the mining sector
has remained relatively stable since the 1990s.
• By contrast sales <strong>of</strong> electricity to the manufacturing
sector increased sharply from 1980 to 2008 driven
mainly by growth and increased consumption by the
non-ferrous metals and iron and steel sub-sectors
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