Genesis Analytics (“Genesis”) has been retained by Business Unity South Africa (“BUSA”) which represents South African business on macroeconomic and highlevel issues of national and international importance. Genesis has been requested by BUSA to provide expert economic analysis in relation to Eskom’s multiyear price determination (“MYPD 3”) application.
Eskom applied to the National Energy Regulator of SA (“NERSA”) in October 2012 for a 16 per cent increase in electricity prices each year for the next five years. Increases of this magnitude are likely to have significant economywide effects on output and employment, particularly in those industries that are electricity intensive. Genesis is thus playing a key role in assessing the appropriateness of this proposed electricity price path while taking into consideration that a sustainable electricity supply is crucial for the South African economy. The findings of the Genesis analysis will be presented at a series of public hearings which will take place in January 2013.