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PAMSA Presentation to NERSA - Public Hearing in Durban at the ICC. 18 January 2010. PAMSA’s Role. To promote the interests of the industry in various forums. To provide a forum for the development and presentation of a common industry view on issues.

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PAMSA Presentation to NERSA - Public Hearing in Durban at the ICC

18 January 2010


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PAMSA’s Role

  • To promote the interests of the industry in various forums.

  • To provide a forum for the development and presentation of a common industry view on issues.

  • To coordinate activities common to the industry.


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Traditionally

  • PAMSA’s activities are primarily in the following areas:

  • Government

  • Industry promotion

  • Education

  • Technical

  • Environment



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Representation

  • Combined Turnover in 2009 – R 20,8 billion out of RSA Turnover of R 21,4 billion – 97%

  • Combined Production in 2009 – 5,0 mtpa out of RSA Production 5,1 mtpa – 98%

  • Combined Forex in 2009 – R 14,4 billion out of RSA R 14,8 billion – 99%

  • Sector Contribution to GDP – 0.99%

  • Sector Combined Employment – 170 025, 129 244 Direct


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Price Development

  • Source – US Energy Information Administration




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Quo Vadis?

  • Problems

  • Demand does & will continue to exceed Capacity

  • DSM will reduce some of the demand but is insufficient to balance the equation, will not provide funding for capacity increases & ‘rewards’ the savers with increased tariffs due to revenue shortfalls

  • Plant is reaching the end of its Economic Life & needs replacing

  • Solutions

  • Decide on whether Eskom is a Parastatal or not.

  • Low or zero-rate loan to be provided centrally

  • Reduced return on equity rate.

  • Review existing export agreements



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