IDEAS home Printed from https://ideas.repec.org/a/taf/deveza/v14y1997i1p97-120.html
   My bibliography  Save this article

Financial analysis of the electrification programme

Author

Listed:
  • Mark Davis

Abstract

This article presents results from a financial analysis of the national electrification programme. The study benefitedfrom the inclusion of detailed capital cost modelling and data describing trends in the growth of consumption since the inception of the programme. The analysis calculated nett present value and accumulated debt, and quantified the level of subsidies required to ensure that the programme is financially viable. The effect of these subsidies on existing surpluses, possible price increases, and financial transfers between regions is investigated. Financial results are determined largely by capital costs, which are likely to be higher than estimated in previous studies. Electrification results in large losses, with revenues inadequate to cover even operating costs not related to financing, and the required subsidies are about Rl,6 billion per year, equivalent to an average 8 per cent general tariff increase. It is concluded that important questions relating to the source and distribution of subsidies, as well as the inclusion of off-grid technologies, will have to be resolved if electrification is to be sustained beyond the year 2000.

Suggested Citation

  • Mark Davis, 1997. "Financial analysis of the electrification programme," Development Southern Africa, Taylor & Francis Journals, vol. 14(1), pages 97-120.
    • Handle: RePEc:taf:deveza:v:14:y:1997:i:1:p:97-120
    DOI: 10.1080/03768359708439952
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/03768359708439952
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/03768359708439952?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:deveza:v:14:y:1997:i:1:p:97-120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CDSA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.