PAPER 2 - ELECTRICITY PRICING AND SECTOR REFORM: Network Sustainability

11 Sep 2025

This report explores the funding of electricity grids. It highlights the challenges of inadequate development charges, the impact of Eskom’s transmission constraints, and municipalities' struggle to finance grid upgrades. A key theme is that underfunding and misaligned cost-recovery mechanisms have led to infrastructure deterioration, limiting the integration of new renewable energy sources.