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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
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.
Traditionally • PAMSA’s activities are primarily in the following areas: • Government • Industry promotion • Education • Technical • Environment
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
Price Development • Source – US Energy Information Administration
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