Towards a pricing strategy for the South African electricity supply and distribution industry

Master Thesis

1994

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University of Cape Town

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The purpose of this dissertation is to develop a strategy for electricity pricing in the South African electricity supply and distribution industry. To achieve this, the thesis focuses on three specific areas: Electricity pricing theory; past and present electricity pricing in South Africa; and a review of electricity pricing in the United Kingdom, France and Zimbabwe. Using this research as a basis, various thoughts are presented on a pricing strategy for the South African electricity industry. The essence of the strategy is that optimal pricing will occur in a truly competitive industry. The thesis does not seek to prove this hypothesis. Instead a three phase development process is proposed whereby electricity pricing in the South African industry may be transformed from its currently fragmented and decentralised position, to a state in which the force of fair competition will be the prime determinant of the pricing policy of the competing suppliers and distributors.
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Bibliography: leaves 253-260.

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