Question

Name the market structure of the electricity supplier in south Africa.

Answer 1

Answer:

Structure of electricity supplier in South Africa:

Explanation:

• In South Africa, the electricity sector is dominated by Eskom Holdings SOC Limited (Eskom).
• They generate a major percentage of electricity for the country which is about 95% of  the electricity in South Africa.
• The distribution of electricity to the end users are shared between the Eskom and the various municipalities.
• The tariffs that Eskom can charge on the electricity are set by NERSA.
• In the 1980s the Eskom performance on producing electricity was diminishing, hence the government decided to divide the power generation capacity between Eskom and independent power producers (IPP).
• IPP was mainly formed to reduce the funding burden on the government and also for introducing the new generation technologies that will diversify the future electricity supply options.

Answer 2

The market structure of the electricity supplier in south Africa is monopoly.

Explanation:

• Eskom Holdings SOC Limited is the dominated electricity supplier in south africa.
• Monopoly means only one supplier or operator or seller are control the majority resources and give the less opportunity to other firms or new firms in the market.
• In south africa escom hold the majority of market shares in electricity of 90 percentage.
• Eskom provide the electricity to residential, mining,commercial, agricultural, cutomers, redistributors and industrial premises in South Africa.

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