Wps4197

This document provides an overview of the current state and challenges facing South Africa's electricity sector. It notes that while Eskom has achieved low prices and high electrification rates, the distribution segment faces significant inefficiencies and financial troubles. It also points out that South Africa now faces a tight supply-demand balance, requiring substantial new investment in generation. The document argues that structural and policy options should be evaluated based on their ability to incentivize this needed investment. It raises concerns about the proposed Electricity Regulation Bill which could undermine regulatory coherence and independence.