Two characteristics of the market structure of electricity in South Africa
Answers
Answer:
In most market structures the characteristics are mainly bound by who the supplier is and what are the number of total suppliers and their ratio in the market.
In this case scenario for South Africa, the electricity market structure is dominated by one company, Eskom Holdings, thus it seems to have
No.1 characteristic: It was a monopoly in the beginning.
No.2 characteristic: It changed to competitive market for power being shared with Independent power producers.
Explanation:
Eskom Holdings SOC Limited (Eskom) dominates the market structure by supplying 95% of the electricity in South Africa.
However there is a say in the matter of tarrif for, the tariffs that Eskom can charge on the electricity are set by NERSA.
In the 1980's the Eskom started sharing power with independent power producers (IPP).
IPP's aim was to reduce the funding burden on the government and to help diversify the future electricity supply options.
Answer:
Explanation:
The market structure of the electricity department in South Africa suffers from many problems due to racial and economical problems. There is a clear cut poducer and consumer relationship and small agencies.
The small agencies give the supply of small coal generated electricity.Though significant changes have occurred from both the political and economic departments this sector is highly dependent on coal fired electricity power.
Though there are constant changes and opportunities one cannot neglect the coal fired power.Planning and regulation is being done on a national scale but its coal dependence is still intact.