TY - BOOK ID - 133445174 TI - Current and Forthcoming Issues in the South African Electricity Sector AU - Maurer, Luiz AU - Bogetic, Zeljko AU - Kessides, Ioannis N. PY - 2007 PB - Washington, D.C., The World Bank, DB - UniCat KW - Balance KW - Coal KW - Coal Reserves KW - Distribution Facilities KW - E-Business KW - Electricity KW - Electricity Distribution KW - Electricity Supply KW - Electricity System KW - Electricity Utilities KW - Electrification KW - Energy KW - Energy Production and Transportation KW - Environmental Performance KW - Generation KW - Investment KW - Options KW - Power KW - Power Plant KW - Power Plant Construction KW - Power Sector KW - Price KW - Primary Energy KW - Private Sector Development UR - https://www.unicat.be/uniCat?func=search&query=sysid:133445174 AB - One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency. ER -