On the Real Exchange Rate Effects of Higher Electricity Prices in South Africa



Table 3: Real electricity prices in South Africa, 1970-2004/5 (2000=100) (c/kWh)

Ave: all sectors

Industrial

Ave: all sectors

Industrial

1970

Real
price
14.36

%

change

Real
price
14.1

%

change

1988

Real
price
19.44

%
change
-3.1%

Real
price
18.18

%
change
-4.9%

1971

13.94

-3.0%

13.7

-2.9%

1989

18.6

-4.5%

17.44

-4.2%

1972

13.8

-1.0%

13.57

-1.0%

1990

18.56

-0.2%

17.27

-1.0%

1973

13.43

-2.8%

13.22

-2.6%

1991

17.31

-7.2%

15.9

-8.6%

1974

12.62

-6.4%

13.17

-0.4%

1992

16.43

-5.4%

14.66

-8.5%

1975

13.09

3.6%

13.42

1.9%

1993

15.58

-5.5%

13.65

-7.4%

1976

15.32

14.6%

15.61

14.0%

1994

15.4

-1.2%

13.37

-2.1%

1977

20.4

24.9%

20.66

24.4%

1995

15.4

0.0%

14.36

6.9%

1978

21.28

4.1%

21.41

3.5%

1996

14.54

-5.9%

12.99

-10.5%

1979

19.98

-6.5%

19.87

-7.8%

1997

14.04

-3.6%

12.77

-1.7%

1980

18.65

-7.1%

18.74

-6.0%

1998

13.62

-3.1%

12.21

-4.6%

1981

18.27

-2.1%

18.27

-2.6%

1999

13.11

-3.9%

11.13

-9.7%

1982

19.58

6.7%

19.79

7.7%

2000

13.23

0.9%

11.94

6.8%

1983

20.93

6.5%

21.05

6.0%

2001

13.02

-1.6%

10.94

-9.1%

1984

19.99

-4.7%

20.1

-4.7%

2002

13.01

-0.1%

11.19

2.2%

1985

19.77

-1.1%

19.77

-1.7%

2003

13.14

1.0%

11.6

3.5%

1986

20.16

1.9%

20.36

2.9%

2004/05

12.96

-1.4%

11.28

-2.8%

1987

20.04

-0.6%

19.07

-6.8%

Ave.

over
period

16.37

-10.8%

15.62

-25.0%

Source: DME (2005).

Table 4: Percentage change in Eskom average prices per customer category (nominal rand), 1994 to
2002

Eskom
average
price
increase
%____

Domestic

Agriculture_______

Commercial_____

Traction

Mining

Industrial______

Redistributors______

Effective
price
increase
%*

1994

1995

4.0%

838

405

7^42

2^38

496

16.74

584

803

1996

4.0%

7.10

6.27

4.11

4.61

3.81

-2.87

3.38

1.38

1997

5.0%

__________9.73

_______________5.52

_______________4.15

__________-1.92

5.81

___________6.68

________________2.49

4.87

1998

5.0%

____________6.61

_______________7.11

______________-6.79

_________-0.96

4.77

____________2.21

__________________1.86

3.71

1999

4.5%

__________11.51

_______________0.62

______________18.11

__________2.02

3.20

___________-4.16

__________________1.73

1.20

2000

5.5%

___________9.24

_____________8.64

_______________1.70

___________1_03

2.37

___________13.05

_________________3.17

6.35

2001

5.2%

11.54

-7.04

-20.66

2.40

3.42

-3.18

5.87

4.06

2002

6.2%

___________8.19

______________-1.42

_______________8.62

_________9.16

5.97

___________10.75

________________9.05

8.9

2003

8.43%

7.21

2004

2.50%

2005

4.10%

-0.26

2006

5.10%

6.26

2007

5.90%

5.93

Source: NERSA (2004); Eskom Annual Reports (various issues).

Note: *Effective increase refers to the actual increase that occurred in a year.

11



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