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Electricity distribution industry restructuring in South Africa: A case study

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  • Gaunt, C.T.

Abstract

For 20 years there has been vigorous debate about restructuring the large, developed electricity industry in South Africa, but the plans have not been implemented. The justification of the proposed restructuring illustrates the different expectations of the participants in the electricity industry. The case study reviews what has occurred against a background of some theories about organisations, and identifies six key issues. Some lessons include the need to adopt an industry structure compatible with the objectives of electricity distribution in developing countries, the unsuitability of orthodox approaches to organisations, that no industry structure appears to be significantly better than others, industry restructuring of public sector utilities has a significant political dimension, restructuring can fail even if there is support from a high level of government, and indecision and uncertainty have serious negative consequences. The experience should be helpful for other developing countries considering structural change of their electricity industry.

Suggested Citation

  • Gaunt, C.T., 2008. "Electricity distribution industry restructuring in South Africa: A case study," Energy Policy, Elsevier, vol. 36(9), pages 3448-3459, September.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:9:p:3448-3459
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    References listed on IDEAS

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    1. Kwoka, J. & Pollitt, M., 2007. "Industry Restructuring, Mergers, And Efficiency: Evidence From Electric Power," Cambridge Working Papers in Economics 0725, Faculty of Economics, University of Cambridge.
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    Cited by:

    1. Ye, Yuxiang & Koch, Steven F. & Zhang, Jiangfeng, 2018. "Determinants of household electricity consumption in South Africa," Energy Economics, Elsevier, vol. 75(C), pages 120-133.
    2. Khan, Muhammad T. & Thopil, George Alex & Lalk, Jorg, 2016. "Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 326-335.
    3. Lucy Baker, 2016. "Post-apartheid electricity policy and the emergence of South Africa's renewable energy sector," WIDER Working Paper Series 015, World Institute for Development Economic Research (UNU-WIDER).
    4. Matthias Finger & Rolf Künneke, 2011. "Introduction," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 1, Edward Elgar Publishing.
    5. Lucy Baker & Jon Phillips, 2019. "Tensions in the transition: The politics of electricity distribution in South Africa," Environment and Planning C, , vol. 37(1), pages 177-196, February.
    6. Sylvy Jaglin, 2014. "Urban Energy Policies and the Governance of Multilevel Issues in Cape Town," Urban Studies, Urban Studies Journal Limited, vol. 51(7), pages 1394-1414, May.
    7. Hlalefang Khobai & Sanderson Abel & Pierre Le Roux, 2016. "Co-integration between Electricity Supply and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 637-645.
    8. Lucy Baker, 2016. "Post-apartheid electricity policy and the emergence of South Africa's renewable energy sector," WIDER Working Paper Series wp-2016-15, World Institute for Development Economic Research (UNU-WIDER).
    9. David Hall & Tue Anh Nguyen, 2017. "Electricity Liberalisation in Developing Countries," Progress in Development Studies, , vol. 17(2), pages 99-115, April.
    10. Telles Esteves, Gheisa Roberta & Cyrino Oliveira, Fernando Luiz & Antunes, Carlos Henggeler & Souza, Reinaldo Castro, 2016. "An overview of electricity prepayment experiences and the Brazilian new regulatory framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 704-722.

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