SOUTH AFRICAN ENERGY

Price Report

2017

Directorate: Energy Data Collection, Management and Analysis

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ENERGY PRICE REPORT 2017

Directorate: Energy Data Collection, Management and Analysis

Compiled by:

Mr Modisane Motiang

modisane.motiang@energy.gov.za

Mr Ramaano Nembahe

ramaano.nembahe@energy.gov.za

Published by:

Department of Energy

Private Bag X96

Pretoria

0001

Tel: (012) 406-7540

192 Visagie Street, c/o Paul Kruger & Visagie Street, Pretoria, 0001

Website: http://www.energy.gov.za

Enquiries: publications@energy.gov.za

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DEPARTMENT OF ENERGY

Director-General Mr T Zulu

ENERGY POLICY AND PLANNING BRANCH Acting Deputy Director-General Mr T Audat

ENERGY PLANNING CHIEF DIRECTORATE Chief Director Ms Z Harber

ENERGY DATA COLLECTION, MANAGEMENT AND ANALYSIS DIRECTORATE Director Ms V Olifant

THIS, THE SEVENTH EDITION, PUBLISHED IN December 2017. WHEREAS THE GREATEST CARE HAS BEEN TAKEN IN THE COMPILATION OF THIS

PUBLICATION, THE DEPARTMENT OF ENERGY RELIES ON DATA PROVIDED BY

VARIOUS SOURCES AND DOES NOT HOLD ITSELF RESPONSIBLE FOR ANY

ERRORS OR OMISSIONS EMANATING AS A CONSEQUENCE OF PROVISION OF

INACCURATE, INCORRECT OR INCOMPLETE DATA FROM SUCH SOURCES.

COPYRIGHT RESERVED

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FOREWORD

It gives me a great pleasure to introduce the 2017 edition of the Energy Price Report for

South Africa. The Energy Price Report is based on the information collated from

government departments, state-owned-entities, oil and gas industries. This publication

covers a broad overview and analysis of the South African energy prices and aims to keep

stakeholders informed about energy prices and key issues affecting the energy industry.

This edition presents energy prices data in a format which provides an overall picture of

monthly and annual trends for common energy carriers used in South Africa. In order to

clearly present and analyse the energy pricing trends, this report is divided into four main

focus areas: Petroleum; Natural Gas, Coal; and Electricity. I extend my most sincere

thanks and appreciation to the Energy Data Collection, Management and Analysis

Directorate for the hard work that went into the compilation of this publication. I would also

like to express my appreciation to all the energy data providers who have helped us to

accomplish what is set out in this report.

This report only covers energy price data and analysis for 2016 as historical information

will always be available in our previous editions respectively.

The Department of Energy is working hard to reduce delays in the publishing of Energy

Price Report and hopes that the publication will become a standard work of reference

among energy analysts in South Africa and abroad. Comments and inputs are welcome

and could be addressed to publications@energy.gov.za.

_____________________

Mr Thabane Zulu

Director General: Energy

Date:

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Table of Contents

SOUTH AFRICAN ENERGY Price Report 2017 i

ENERGY PRICE REPORT 2017 1

DEPARTMENT OF ENERGY 2

FOREWORD 3

1 INTRODUCTION 8

2 PETROLEUM 9

2.1 Crude Oil 9

2.2 Petroleum Products 12

2.2.1 Petrol 13

2.2.2 Diesel 17

2.2.3 Illuminating Paraffin 21

2.2.4 Liquid Petroleum Gas (LPG) 24

3 NATURAL GAS 27

4 COAL 30

4.1 Local and export coal prices 31

5 ELECTRICITY 33

APPENDIX B: FUEL PROPERTIES 38

APPENDIX C: UNIT CONVERSIONS 39

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Table of Tables

Table 2.1: 2016 Average Monthly Brent Crude Oil and the Exchange Rate ...................... 10

Table 2.2: 2016 Monthly Petrol ULP 93/95 Prices in cents per litre ................................... 13

Table 2.3: 2016 Petrol ULP 95 Monthly Levies, Taxes and Margins in cents .................... 15

Table 2.4: 2016 Monthly Diesel Wholesale Prices in cents per litre ................................... 17

Table 2.5: 2016 Diesel 0.05% Monthly Levies, Taxes and Margins in cents ..................... 19

Table 2.6: 2016 Monthly Illuminating Paraffin Prices in cents per litre ............................... 21

Table 3.1: 2016 Monthly Natural Gas Prices in Rand per GigaJoule ................................. 28

Table 4.1: Annual average local and export coal prices in Rand per ton ........................... 31

Table 5.1: Annual Average Eskom Prices by Customer Category in cents per kilowatt per

hour (2007/8-2016/17) ....................................................................................................... 34

Table B.2: Calorific Values of Various Fuels ...................................................................... 38

Table C.3: Energy Unit Conversion Factors ....................................................................... 39

Table C.4: Unit Prefixes ..................................................................................................... 39

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Table of Figures

Figure 2.1: 2016 Average Monthly Brent Crude Oil and the Exchange Rate ..................... 11

Figure 2.2: 2016 Monthly Petrol ULP 93/95 Prices in cents per litre .................................. 14

Figure 2.3: 2016 Petrol ULP 95 Monthly Levies, Taxes and Margins ................................ 16

Figure 2.4: 2016 Monthly 0.05% Sulphur Diesel Prices in cents per litre ........................... 18

Figure 2.5: 2016 Diesel 0.05% Monthly Levies, Taxes and Margins in cents .................... 20

Figure 2.6: 2015 Monthly Illuminating Paraffin Price in cents per litre ............................... 23

Figure 2.7: 2016 Monthly Regulated Maximum Retail LPG Prices in cents per kilogram .. 25

Figure 3.1: 2016 Monthly Natural Gas Prices in Rand per GigaJoule ................................ 29

Figure 4.1: Annual Average Local (FOR) and Exports Prices (FOB) in Rand per ton ........ 32

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Abbreviations and Acronyms

BFP – Basic Fuel Price

CIF – Cost, Insurance and Freight

COC – Customer Own Collection

CPI – Consumer Price Index

DME – Department of Minerals and Energy

DoE – Department of Energy

HFO – Heavy Furnace Oil

IEA – International Energy Agency

LNG Liquefied Natural Gas

LPG – Liquefied Petroleum Gas

LRP – Lead Replacement Petrol

MRGP – Maximum Refinery Gate Price

NERSA – National Energy Regulator of South Africa

OECD – The Organisation for Economic Co-operation and Development OPEC – Organization of the Petroleum Exporting Countries

PPI – Producer Price Index

RAF – Road Accident Fund

RFA – Road Freight Association

SAPIA – South African Petroleum Industry Association

StatsSA – Statistics South Africa

ULP – Unleaded Petrol

US$ – United States Dollar

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1 INTRODUCTION Energy is a key strategic sector in the South African economy because it underpins

the growth and developmental objectives set out by government. Energy is the vital

force that powers businesses, manufacturing, the transportation of goods and the

delivery of services to the nation. South Africa’s steady economic growth, coupled with

an increasing focus on industrialisation and a mass electrification programme to take

power into deep rural areas, has seen a steep increase in the demand for energy. In

fact, South Africa’s energy demand is expected to be twice the current levels by 2030.1

The purpose of the Energy Price Report is to provide an overview of latest energy

pricing trends and analysis for the major energy carriers in South Africa i.e. coal,

natural gas and crude oil. Energy prices are significant indicators in the cost of

providing services such as transport or electricity.

This report covers monthly prices as well as trend analysis of various energy carriers

for the year 2016. In South Africa, electricity prices are reviewed once a year while

petroleum products prices are changed once a month due to fluctuations in

international oil prices (quoted in US dollars) and the rand/dollar exchange rate.

The report consists of the following sections:

Section 2 covers prices of crude oil, and all major petroleum products (petrol,

diesel, illuminating paraffin and liquid petroleum gas).

Section 3 covers natural gas prices.

Section 4 covers the prices of locally consumed and exported coal.

Section 5 presents the national Eskom electricity prices. This does not include

the prices of electricity sold by individual/various municipalities to end

customers.

Each section gives a brief introduction followed by a table of prices and graphs

depicting the price movements over time. Where possible a brief analysis of possible

reasons for price fluctuations is provided.

1 South African Yearbook 2013/14, Energy

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2 PETROLEUM This section covers the international crude oil prices as well as a breakdown of prices

for petroleum products sold nationally for 2016. The main focus of the analysis in this

section is on the price fluctuations as well as related global and national events that

led to the fluctuations.

2.1 Crude Oil Oil remains the world’s leading fuel accounting for 32.9% of global energy

consumption. According to the BP Statistical Review of World Energy 2016, South

Africa consumed 649 thousand barrels of oil a day in 2015. South Africa produces

about 5% of its fuel needs from gas, about 35% from coal and about 50% from local

crude oil refineries. About 10% is imported from refineries elsewhere in the world. A

key feature of the South African liquid-fuels sector is that most transport fuel is

produced in the coastal areas, about 68% of which is consumed in Gauteng. South

Africa has very limited oil reserves. About 60% of its crude oil requirements are met by

imports from the Middle East and Africa.2 South Africa‘s transport system depends on

petroleum fuels for almost all of its energy needs, with more than 80% of the

petroleum fuels consumption made up of petrol and diesel.3

Crude oil is imported into South Africa by the local manufactures (refineries) and

licenced wholesalers. For energy-importing countries like South Africa, oil is the key to

the country’s energy security. High oil prices are a major threat to the country’s overall

energy security and lead to high direct costs to consumers.

The major international benchmarks for crude oil which are defined below are Dubai in

the Arab Gulf Region, West Texas Intermediate (WTI) in North America and Brent in

Europe. In the South African case, Brent and Dubai benchmarks are used for oil

prices. However, in this section only Brent crude will be reported and analysed.

Since the two main factors affecting the petroleum prices is the global oil prices and

the exchange rate between the South African Rand and the US Dollar; then the

narrative in this section will primarily focus on the two and their impact on the

petroleum prices on a monthly basis.

2 South Africa Yearbook 2014/15 3 Overview of petrol and diesel market in South Africa between 2002 and 2013

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The average monthly prices of Brent crude oil and the exchange rate for 2016 are

shown in Table 2.1 bellow. The crude oil prices are presented in US Dollar per barrel

and the exchange in Rand per Dollar.

Table 2.1: 2016 Average Monthly Brent Crude Oil and the Exchange Rate Period Average Brent Crude Oil Exchange Rate

Jan 38.22 14.88

Feb 30.83 16.32

Mar 32.11 15.78

Apr 38.49 15.46

May 41.28 14.65

Jun 46.56 15.20

Jul 48.34 15.16

Aug 45.28 14.44

Sep 45.94 13.80

Oct 46.60 14.00

Nov 49.86 13.96

Dec 52.48 13.91

Source: South African Petroleum Industry Association (SAPIA) and South African Reserve Bank

In the month of February the crude oil prices dropped by 24% to $30.83 per barrel and

the Rand weakened against the US Dollar. As a result there followed suit a massive

reduction of prices of all petroleum products (except for petrol and LPG) the same

month. Occasionally the market experiences opposite movements of fuel prices as a

result of other market factors apart from the oil price and the exchange rate. Such

factors like the supply and/or demand of one product more than the other. Such an

incident occurred in February and March where fuel prices moving in opposite

directions. Therefore the weak Rand and falling oil prices do not guarantee a

spontaneous drop in fuel prices.

The beginning of the third quarter (i.e. July) experienced price increases across all

petroleum products which were induced by strengthening of the Rand against the US

Dollar (at R15.16 per Dollar) and the increase in crude oil prices to $48.34 per barrel.

On the contrary, the month of August was characterised by the drop in crude oil prices

due to:

i. Increase in US crude oil stockpiles

ii. Decrease in demand for crude oil in the global markets

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iii. Gradual return of crude oil supply from Canada.

These led to a hefty drop in the prices of all petroleum products with petrol dropping by

99 cents per litre and LPG by 160 cents per kilogram. The third quarter closed with an

overall fall of all petroleum products though the Rand strengthened against the US

Dollar and the crude oil prices increased. The crude oil prices increased due to the

news that OPEC and other key exporters are likely to revive talks on freezing output

levels meeting in Algeria in September 2016.

Figure 2.1: 2016 Average Monthly Brent Crude Oil and the Exchange Rate

Source: South African Petroleum Industry Association (SAPIA)

The fourth quarter commenced with an increase in crude oil prices to $46.60 per barrel

owing to the sharp fall in US crude stocks which pushed the prices up ahead of an oil

producers meeting in Algeria and a speculation of a production freeze. In November,

crude oil prices further increased by $3.26 to $49.86 per barrel; the increase is

attributed to the fact OPEC talked publicly about the possibility of production restraint

and together with the possibility of Russia following suit. The year concluded with a

decrease in oil prices to $52.48 per barrel and the slight appreciation of the Rand

against the US Dollar from R13.96 to R13.91. By large, crude oil prices reflect an

increasing trend throughout the year; with the exchange rate portraying a slightly

falling trend as depicted in the figure above.

12

13

14

15

16

17

18

30

35

40

45

50

55

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Exch

an

ge

Ra

te

Bre

nt

Cru

de

Oil

Average Brent Crude Oil Exchange Rate

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2.2 Petroleum Products Fuel prices in South Africa are adjusted on a monthly basis; such adjustments are

informed by international and local factors. The main international factor is the crude

oil prices and foremost local factor is the exchange rate of the Rand against the US

dollar. The other local factor causing fuel price increases is fuel levies and the Road

Accident Fund levy that are determined annually by the Minister of Finance which are

effected in April annually. These levies contributed to the highest fuel increases of the

year which manifested in April.

Petrol 95 Octane Unleaded, Petrol 93 Unleaded, Petrol 95 LRP, Petrol 93 LRP, Diesel

0.05% Sulphur, Diesel 0.005% Sulphur and Illuminating Paraffin are the products

covered by the calculation of the Basic Fuel Price (BFP). The BFP is based on an

import parity principle. In other words, it is what it would cost a South African importer

of petrol to buy the petrol from an international refinery, transport the product from that

refinery, insure the product against losses at sea and land the product on South

African shores. The BFP formula reflects the realistic cost of importing a litre of

product from international refineries with products of a similar quality compared to local

South African specifications on a sustainable basis.

Fuel prices in South Africa are linked to the price of crude oil in international markets.

With any increase in crude oil prices – as has been the case over the past three years

– the fuel prices also increases so that crude oil refineries are able to cover their own

costs.

The tables, graphs and analysis of main petroleum products for 2016 are illustrated

and expounded in the subsequent sections.

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2.2.1 Petrol Motorists got a minor relief at the beginning of 2016 with the price of ULP 95

dropping by 3 cents per litre to R12.37 inland whereas ULP 93 prices remained the

unchanged. As illustrated in the table below, in February prices for both grades of

petrol rose slightly by six cents. The increase was mainly due to the tightness in the

market because some major refineries in the USA were on unplanned shutdown.

Table 2.2: 2016 Monthly Petrol ULP 93/95 Prices in cents per litre

Period Petrol (ULP) 93 Petrol (ULP) 95

Coast Gauteng Coast Gauteng

January 1176 1209 1194 1237

February 1182 1215 1200 1243

March 1113 1146 1131 1174

April 1199 1227 1214 1262

May 1211 1239 1226 1274

June 1263 1291 1278 1326

July 1274 1302 1286 1334

August 1175 1203 1187 1235

September 1157 1185 1169 1217

October 1201 1229 1212 1260

November 1246 1274 1257 1305

December 1226 1254 1237 1285

Source: Department of Energy (DoE)

The second quarter of the year saw a persistent increase in the petrol prices. Price

increases in April is inevitable, this is the month where government levies on fuel

prices are imposed. The total amount of levies determined by the Minister of Finance

amounted to 30 cents per litre. These led to an enormous increase of ULP 95 and 93

prices by 88 and 86 cents per litre respectively. The prices for both grades of petrol

increased significantly in May by 12 cents per litre due to higher demand in USA and

Europe as they moved towards their summer season.

The prices of all grades of petrol peaked at the beginning of the third quarter where

ULP 95 inland prices reached R13.34 per litre as depicted on the figure below. The

month of July was characterised by the increase in crude oil prices mainly due to

supply disruptions in Canada, Venezuela, Libya, Nigeria and Iraq.

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Figure 2.2: 2016 Monthly Petrol ULP 93/95 Prices in cents per litre

Source: Department of Energy (DoE)

The year closed with prices over R12 across all grades with an equivalent decrease

of 20 cents per litre. The decrease was effected by the drop in crude oil prices due to

market oversupply with a lot of crude in storage, low freight rates and limited demand

growth.4

4 the analysis is based on media statements issued by the Department of Energy on the adjustment of fuel prices on the first Wednesday of every month which can be accessed on http://www.energy.gov.za/files/petroleum_frame.html

1100

1150

1200

1250

1300

1350U

LP

93

/95

Pri

ce

s

Petrol ULP 93 Coast Petrol ULP 93 Gauteng Petrol ULP 95 Coast Petrol ULP 95 Gauteng

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The elements that make up the price of unleaded petrol 95 are depicted on table 2.3 below. The difference between the retail price of

ULP 93 and ULP 95 in the inland region of around 15 cents per litre on average is mainly due to the 10 cents per litre Demand-Side

Management Levy (DSML) charged on ULP 95 as well as quarterly adjustments of octane/grade zone differentials.

Table 2.3: 2016 Petrol ULP 95 Monthly Levies, Taxes and Margins in cents Period Contribution

to BFP wholesale

margin Equalisation

fund levy Petroleum products

Levy

Slate levy

Incremental Inland

Transport Cost

Recovery Levy

Dealers margin

DSML Pump Rounding

service cost

recovery

Zone differential

Fuel tax Customs & excise

Road accident

fund

IP tracer levy

Jan 550.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.30 18.50 35.30 255.00 4.00 154.00 0.00

Feb 556.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.30 18.50 35.30 255.00 4.00 154.00 0.00

Mar 487.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.30 18.50 35.30 255.00 4.00 154.00 0.00

Apr 540.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

May 552.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Jun 604.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Jul 612.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Aug 513.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Sep 495.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Oct 538.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Nov 583.97 33.20 0.00 0.33 0.00 0.00 161.70 10.00 0.40 18.50 41.00 285.00 4.00 154.00 0.00

Dec 543.97 35.60 0.00 0.33 0.00 0.00 176.40 10.00 0.50 17.90 41.00 285.00 4.00 154.00 0.00

Source: Department of Energy (DoE)

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To identify the contribution of each component to the final retail price of petrol, all the

components are illustrated in Figure 2.4 below with their percentage contributions. The

Basic Fuel Price (BFP) and fuel levy had a larger share in the final retail price of Petrol

ULP 95 in 2016, contributing 44% and 23% respectively. The dealer’s margin and Road

Accident Fund (RAF) contributed 13% and 12% respectively. The wholesale margin and

the zone differential in Gauteng contributed 3% each to the final retail price of petrol. The

rest of the components contributed a negligible amount towards the final retail price.

During the 2016 budget speech, the Minister of Finance announced adjustments to the

taxes levied per litre of fuel to motorists by government at the filling stations. The two

levies involved are fuel levy and RAF; the former was raised by 30 cents and the latter

remained the unchanged. These adjustments are implemented on the 1st of April

annually.

Figure 2.3: 2016 Petrol ULP 95 Monthly Levies, Taxes and Margins

Source: Department of Energy (DoE)

In December 2016, the Minister of Energy approved the annual adjustment of all the

industry margins by 15.20 cents per litre (in total) on petrol and 5.96 cents per litre on

diesel and illuminating paraffin, in line with Regulatory Accounting System methodology.

Contribution to BFP44%

wholesale margin3%

Dealers margin13%

Zone differential3%

Fuel tax23%

Road accident fund12%

Other38%

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2.2.2 Diesel In February, diesel prices plummeted enormously because of oversupply of middle

distillates due to the fact that the Northern Hemisphere experienced mild winter season

compared to previous periods. This led to the massive decrease of 63 cents drop in the

price of diesel 0.005% sulphur.

With government levies imposed on the fuel prices in April as alluded in section 2.2.1

along with the average increase in the prices of petroleum products in the international

markets of 61 cents per litre, diesel prices increased by an immense 95.7 and 97.7

cents per litre of 0.05% and 0.005% sulphur respectively.

Table 2.4: 2016 Monthly Diesel Wholesale Prices in cents per litre

Period Diesel 0.05% Sulphur Diesel 0.005% Sulphur

Coast Inland Inland

January 972 1005 1013

February 910 943 950

March 925 958 936

April 1015 1054 1033

May 1014 1053 1035

June 1090 1129 1111

July 1132 1171 1152

August 1058 1097 1079

September 1010 1049 1030

October 1033 1072 1053

November 1096 1135 1116

December 1064 1103 1085

Source: Department of Energy (DoE)

Diesel prices in mid-winter in June increased by 76 cents per litre higher than petrol due

to the fact that European refineries were focused on producing more petrol for the

summer season.

The beginning of the fourth quarter was characterised by the strong Rand against the

US Dollar, the increases of the BFP of 23 cents per litre of diesel and the increases in

the crude oil price. These increases shoved the inland price to R10.53 per litre in

October.

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Figure 2.4: 2016 Monthly 0.05% Sulphur Diesel Prices in cents per litre

Source: Department of Energy (DoE)

The year closed with the prices plunging by 32.04 and 31.04 cents per litre of 0.05%

and 0.005% diesel sulphur respectively. These decreases are attributed to the

appreciation of the Rand against the Dollar from R13.96 to R13.91; and the decrease in

crude oil prices.

900

950

1000

1050

1100

1150

1200D

iese

l Pri

ce

s

Diesel 0.05% Sulphur Coast Diesel 0.05% Sulphur Inland

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In his 2016 budget speech, the Minister of Finance announced adjustments to the taxes levied per litre of fuel to motorists by

government at the filling stations. The levy on fuel was raised by 30 cents to R2.70 per litre for diesel which was implemented in

April as depicted on the table below.

Table 2.5: 2016 Diesel 0.05% Monthly Levies, Taxes and Margins in cents

Period Contribution

to BFP wholesale

margin Equalisation

fund levy

Petroleum products

Levy Slate levy

Incremental Inland

Transport Cost

Recovery Levy

Dealers margin

service cost

recovery

Zone differential

Fuel tax Customs &

excise

Road accident

fund

IP tracer levy

Jan 474.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 35.30 240.00 4.00 154.00 474.63

Feb 412.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 35.30 240.00 4.00 154.00 412.63

Mar 427.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 35.30 240.00 4.00 154.00 427.63

Apr 487.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 487.63

May 486.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 486.63

Jun 562.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 562.63

Jul 604.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 604.63

Aug 530.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 530.63

Sep 482.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 482.63

Oct 505.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 505.63

Nov 568.63 64.70 0.00 0.33 0.00 0.00 0.00 18.50 41.00 270.00 4.00 154.00 568.63

Dec 530.63 67.66 0.00 0.33 0.00 0.00 0.00 17.90 41.00 270.00 4.00 154.00 530.63

Source: Department of Energy (DoE)

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To identify the contribution of each component to the diesel wholesale price, all the

components are shown in Figure 2.5. In 2016 the BFP was the largest contributor to the

total wholesale price of diesel with 49%. The second largest contributor to diesel

wholesale price was fuel levy contributing 25%, followed by Road Accident Fund (RAF)

levy at 14%, wholesale margin and zone differential’s contributions amounting to 6% and

4% respectively. The rest of the components contributed a negligible amount towards the

final price.

Figure 2.5: 2016 Diesel 0.05% Monthly Levies, Taxes and Margins in cents

Source: Department of Energy (DoE)

.

Contribution to BFP49%

wholesale margin

6%service cost recovery2%

Zone differential4%

Fuel tax25%

Road accident fund14%

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2.2.3 Illuminating Paraffin Like any other petroleum products, paraffin is equally susceptible to the volatility of the

international oil prices and the exchange rate fluctuations. The coastal and inland prices in

of illuminating paraffin for 2016 are illustrated on table and graph 2.6. Paraffin prices still

remain the cheapest among petroleum products. It is used by millions of people in South

Africa mostly for domestic purposes.

The Department of Energy started to regulate the maximum retail price for illuminating

paraffin, excluding the price of any form of packaging since January 2010. However, the

prices analysed in this section are wholesale prices and not the Single Maximum National

Retail Price.

Table 2.6: 2016 Monthly Illuminating Paraffin Prices in cents per litre

Period

Illuminating Paraffin

Coast Gauteng

January 594 647

February 535 588

March 552 605

April 608 663

May 601 656

June 663 718

July 706 761

August 640 695

September 593 648

October 615 670

November 672 727

December 644 699

Source: Department of Energy (DoE)

In February, the prices of illuminating paraffin plunged by 59 cents per litre to R5.88 per

litre in the inland due to the oversupply of middle distillates in the global market. The

month following saw a slight price increase by 17 cents pushing up the inland prices to

R6.05 per litre. The price increases is attributed to the strength of the Rand against the US

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Dollar, increases in the crude oil price due to rumours that OPEC might cut production and

the increase in the average international illuminating prices

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Figure 2.6: 2015 Monthly Illuminating Paraffin Price in cents per litre

Source: Department of Energy (DoE)

By the beginning of the third quarter inland prices were R6.70 per litre as depicted in the

figure above; this was a reflection of 22 cents increase per litre. Such an increase was in

line with the increase in the Basic Fuel Price of illuminating paraffin of 22 cents per litre.

The Single Maximum National Retail Price for Illuminating Paraffin changes on a monthly

basis on the first Wednesday of each month and is promulgated in the Government

Gazette. Paraffin prices still remain the lowest in the country in comparison with other

petroleum fuels.

500

550

600

650

700

750

800

Illu

min

ati

ng

Pa

raff

in P

rice

s

Coast Gauteng

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2.2.4 Liquid Petroleum Gas (LPG) The largest consumer of LPG globally is the retail market. LPG penetration for South

African households as primary energy for cooking is 3.2% (StatsSA 2013). African LPG

resources are estimated to 6.2% of world production, the production is offset by low

demand. South Africa is faced with some barriers to entry in the local gas market,

including a lack of infrastructure, high capital costs, environmental concerns relating to

shale gas exploration and the lack of a credible and constructive industry development

programme. Refineries and Sasol produce LPG and illuminating paraffin. Most LPG is

consumed in the country and the rest is used in refineries as fuel and/or exported

regionally.

The retail price of LPG is not regulated but it is regulated at a refinery level. The LPG

refinery price is termed Maximum Refinery Gate Price (MRGP) which is determined in

terms of the Regulation in respect of the Maximum Refinery Gate Price of Liquefied

Petroleum Gas No. R. 377 of 1 April 2008.

Table 2.7 below depicts the prices of maximum refinery and retail prices for LPG.

However, the analysis of LPG prices in this section is based on the regulated maximum

retail gate prices.

Table 2.7: 2016 Monthly Regulated Maximum Refinery Gate and Maximum Retail Prices for Liquefied Petroleum Gas (LPG)

Period Regulated Maximum Refinery Gate

Prices Regulated Maximum Retail Prices

cents per litre Inland (cents per Kg) Coastal(cents per Kg)

January 391.66 2074 1892

February 392.21 2075 1893

March 341.49 1955 1773

April 387.83 2065 1883

May 385.69 2060 1877

June 427.30 2158 1976

July 432.60 2170 1988

August 364.58 2010 1828

September 360.74 2001 1819

October 694.52 2059 1877

November 739.94 2118 1936

December 691.35 2101 1913

Source: Central Energy Fund (CEF)

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The MRGP of LPG is based on the average monthly Basic Fuels Price (BFP) of 93 octane

Lead Replacement Petrol (LRP). It is calculated in South African cents per litre in line with

the Working Rules to administer the Basic Fuels Price. The price of 93 LRP in South

African cents per litre is converted to an LPG price in South African Rands per ton as

follows: BFP of 93 LRP in Rands per litre/0.75*1000 less R74.00/ton=Rands per ton. The

MRGP in South African Rands per kilogram is determined as follows: Maximum refinery

gate price per ton/1000=Maximum refinery gate price per kg5.

Figure 2.7: 2016 Monthly Regulated Maximum Retail LPG Prices in cents per kilogram

Source: Department of Energy (DoE)

The Minister of Energy approved adjustments to some of the pricing elements of the

maximum retail price structure of LPG in January, thus the maximum retail margin of LPG

increased by 50 cents per kg. These along with the weak Rand against the US Dollar led

to the increase of the maximum retail price of LPG by 45 cents per litre. 6

During the midst of the second quarter of the year the inland LPG prices were R20.60

cents per kilogram. This was a reflection of a mere 5 cents decrease in the price per

kilogram. The prices have been on the increasing trend from the end of quarter 1 to the 5 WORKING RULES TO SET THE MONTHLY MAXIMUM RETAIL PRICE FOR LIQUEFIED PETROLEUM GAS (LPG)

http://www.energy.gov.za/files/policies/workingrules_lpg_2010July.pdf accessed 2016/11/08 6 the above analysis is based on media statements issued by the Department of Energy on the adjustment of fuel prices on the first Wednesday of every month which can be accessed on http://www.energy.gov.za/files/petroleum_frame.html

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midst of quarter 3 until they summited in July as depicted on the figure above. By the last

month of the year the prices were settled at R21.01 cents per kilogram.

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3 NATURAL GAS Natural gas primarily consists of methane. It is found in deep onshore or offshore

underground natural rock formations as conventional gas, or trapped within impermeable

rock formations as unconventional shale gas. In its natural state it can be transported in

pipelines; or it can also be liquefied by refrigeration to produce Liquefied Natural Gas

(LNG) for alternative transportation purposes.

South Africa has a history of gas as an energy source dating back to 1892. In 1966 the

South African gas distribution company (now Sasol Gas) was formed to market and

distribute pipeline gas on a broader scale. Initially gas was sourced from industrial coal-to-

gas processes. In 2004 the first natural gas from Mozambique arrived in Secunda through

the over-border pipeline. Today the bulk of gas is supplied from natural (imported) sources

as opposed to synthetically (locally) produced sources. South Africa has gas trade

agreements with Namibia and Mozambique. Currently natural gas is supplied from the

Temane and Pande Mozambican gas fields to South Africa.

Natural gas is already used in South Africa to produce diesel at the GTL facility in Mossel

Bay as well as natural gas supplemented Coal-to-Liquid (CTL) at Sasol in Secunda. By

expanding the GTL capability for South Africa more liquid fuel in the form of diesel is

produced locally. In 2001, the government of South Africa and Sasol Limited signed an

agreement concerning the Mozambican gas pipeline. Sasol, which dominates the piped

gas market in South Africa, has been exempted from regulated pricing for the past 10

years as the provisions of the agreement have prevailed over the Gas Act since 2004. The

rationale was, among others, to promote the development of a commercial and

competitive piped gas industry with active participation by the private sector, while at the

same time introducing natural gas into the South African economy at the lowest cost and

as fast as possible. The gas industry is a capital intensive industry and Sasol and its partners have invested

over R21 billion in the natural gas industry to date and continue to make further

investments. The manufacturing circle estimates that gas accounted for about 20% of

input costs for some large manufacturers, and major users consumed 59% of the gas

Sasol supplied to the domestic market.7 7 http://www.transnet.net/BusinessWithUs/LTPF%202012/1.LTPF%202014_Chapter%2008__Natural%20Gas_Final%20Proof_Sept%202014.pdf,

accessed on 2017/02/17

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Table 3.1 presents the South African historical natural gas prices supplied by Sasol Gas

for 2016. The tariffs are grouped into six customer categories of average annual

consumption measured in Rand per GigaJoule.

Table 3.1: 2016 Monthly Natural Gas Prices in Rand per GigaJoule

Period Maximum

price Class1 Class 2 Class 3 Class 4 Class 5 Class 6

33 GJ 333 GJ 3 333 GJ 33 333 GJ 333 333 GJ 1 054 093 GJ

JAN 129.97 96.62 86.97 72.47 48.31 43.48 38.64

FEB 129.97 96.62 86.97 72.47 48.31 43.48 38.64

MAR 129.97 96.62 86.97 72.47 48.31 43.48 38.64

APR 128.98 95.89 86.31 71.91 47.94 43.14 38.35

MAY 128.98 95.89 86.31 71.91 47.94 43.14 38.35

JUN 128.98 95.89 86.31 71.91 47.94 43.14 38.35

JUL 122.42 91.01 81.92 68.25 45.50 40.94 36.39

AUG 122.42 91.01 81.92 68.25 45.50 40.94 36.39

SEP 122.42 91.01 81.92 68.25 45.50 40.94 36.39

OCT 135.07 83.42 83.41 75.30 50.20 45.17 40.15

NOV 135.07 83.42 83.41 75.30 50.20 45.17 40.15

DEC 135.07 83.42 83.41 75.30 50.20 45.17 40.15

Source: SASOL

Explanatory Notes:

1. According to the Regulatory Agreement, in terms of Section 36 of the Gas Bill, Sasol Gas has to comply to the

Market Value Pricing principle which are defined as follows:

a). The cost of the alternative fuel delivered to the customer's premises or anticipated place of use (in the case of

Greenfields customers) plus;

b). The difference between all the operating costs of the customer's use of the alternative fuel and all the operating

costs of using natural gas; plus

c). The difference between the Net Present Value (NPV) of the capital costs of the customer's continued use of the

alternative fuel and the NPV of the capital costs involved in switching to natural gas, as would be reflected in the

customer's accounts.

2. Gas prices are negotiated with customers individually. The prices above are indicative of pipeline gas sold by Sasol

Gas and are exclusive of VAT.

3. Since April 2014, the above-mentioned indicative gas prices are subject to monthly adjustment in accordance with

the applicable adjustment formula The maximum Gas Energy Prices (“GE”) are determined in accordance with the

Methodology to Approve Maximum Prices of Piped-Gas in South Africa promulgated by NERSA in October 2011

(the “Methodology”). In terms of the said Methodology, the maximum energy prices are referenced to price

indicators of certain energy sources.

29 | P a g e

Figure 3.1: 2016 Monthly Natural Gas Prices in Rand per GigaJoule

Source: SASOL

As depicted in Figure 3.1 below, the prices of pipeline natural gas sold by Sasol to various

customers. Sasol Gas maximum price application is made in terms of the Energy Price

Indicators Approach.

The National Energy Regulator approves maximum prices of piped-gas subject to a finding

that there is inadequate competition. The National Energy Regulator made a decision on

08 February 2008 that there is inadequate competition.

The maximum prices per customer class are different from the actual prices applicable to

all customers within a certain customer class. Therefore the actual impact of the maximum

price cannot be determined by only considering the maximum price. Discounts from the

maximum price are allowed subject to section 22 of the Gas Act.

The National Energy Regulator only approves a price ceiling, implying that the actual

prices charged to customers should not exceed the maximum price. Actual prices are

determined based on contractual negotiations between a licensee and its customers, and

the negotiated price should comply with section 22 of the Gas Act.8

8The above narrative is derived from http://www.nersa.org.za/ accessed on 2017/02/17

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4 COAL South Africa’s indigenous energy-resource base is dominated by coal. South Africa’s

coal is obtained from collieries that range from among the largest in the world to small-

scale producers. By international standards, South Africa’s coal deposits are relatively

shallow with thick seams, making them easier and cheaper to mine.9

South African coal has a comparatively medium ash content which can be reduced by

washing before sale. Higher grades of final product are delivered to export markets,

with the lower grade product burned by Eskom’s specially designed power station

boiler hearths. In addition to the extensive use of coal in the domestic economy, about

28% of South Africa’s production is exported, mainly through the Richards Bay Coal

Terminal, making South Africa the fourth largest coal exporting country in the world.

According to BP Statistical Review of World Energy 2017, world coal production fell by

6.2%, or 231 mtoe (million tonnes oil equivalent), the largest decline on record.

China’s production fell by 7.9% or 140 mtoe, also a record decline. US production fell

by 19% or 85 mtoe. The fortunes of coal appear to have taken a decisive break from

the past. This shift largely reflects structural factors: the increasing availability and

competitiveness of natural gas and renewables, combined with government and

societal pressure to shift towards cleaner, lower carbon fuels. In 2016, South African

coal production dropped by 0.6% to 142.4 mtoe. The share of global coal production

by South Africa accounted for 3.9%. On the contrary, coal consumption increased by

1.8% to 85.1 mtoe, which puts South African share of global coal consumption at

2.3%. By the end of 2016, the total proved coal reserves are estimated at 9893 mtoe.

Total proved reserves are quantities that can be recovered in the future from known

reservoirs under existing economic and operating conditions.

At current rates of production, South Africa has reserves sufficient to satisfy its needs

for more than a century. However the locus of production is gradually shifting away

from the traditional Witbank or Emalahleni coal field as collieries approach the end of

their productive lives. Emphasis is being placed on exploring and developing the

Waterberg coal field as well as others in the Limpopo province10.

9 South African Yearbook 2015/16 10http://www.chamberofmines.org.za/sa-mining/coal, accessed on 2017.08.10

31 | P a g e

The following section provides the prices of thermal coal sold locally and exported.

4.1 Local and export coal prices Table 4.1 below shows the average local and export prices of anthracite and

bituminous coal from 2007 to 2016.

Table 4.1: Annual average local and export coal prices in Rand per ton

Period

Coal Bituminous Coal Anthracite

Average Price Exports (FOB)

Average Price Local Sales (FOR)

Average Price Exports (FOB)

Average Price Local Sales (FOR)

Jan-07 358.83 105.86 444.93 485.67

Jan-08 735.64 150.68 602.11 604.24

Jan-09 517.91 171.63 889.64 690.36

Jan-10 549.33 180.50 776.83 781.75

Jan-11 727.85 196.02 864.65 898.90

Jan-12 682.00 222.00 961.00 957.00

Jan-13 692.00 263.00 889.00 922.00

Jan-14 677.50 292.42 738.17 983.92

Jan-15 614.98 308.58 777.25 1028.00

Jan-16 733.58 332.75 702.17 1021.83

Source: Department of Mineral Resources

Explanatory Notes:

1. FOB: Free On Board.

2. FOR: Free On Road.

3. The prices are exclusive of VAT

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Figure 4.1: Annual Average Local (FOR) and Exports Prices (FOB) in Rand per ton

Source: Department of Mineral Resources (DMR)

Anthracite is a hard, compact coal that has the highest carbon content, the fewest

impurities, and the highest calorific content of all types of coal. It is used mainly in

power generation. Bituminous is a relatively soft coal containing a tarlike substance

called bitumen and it is of a poorer quality compared to anthracite.

Internationally, China is the largest coal consumer and coal producer at the same time.

But locally India is the largest importer of coal from South Africa. India imports

approximately make up half of South African coal.

There has been overall plunge in coal anthracite prices in 2016 as depicted on the

figure above. On the contrary, coal bituminous prices rose moderately in the same

year. the coal anthracite remains high in prices in comparison due to its quality and

usage. The coal anthracite as alluded above dipped a bit from R1028 Rand per ton to

1021.83 in 2017.

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Coal Anthracite Average Price Exports (FOB) Coal Anthracite Average Price Local Sales (FOR)

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5 ELECTRICITY South Africa’s electricity supply industry comprises the generation, transmission and

distribution and sale of electricity, including the import and export thereof. Eskom

operates most of the baseload and peaking capacity, although the IPPs is expanding.

According to South Africa Yearbook 2015/16, Eskom is one of the top utilities in the

world by generation capacity. It generates approximately 95% of the electricity used in

South Africa and approximately 45% of the electricity used in Africa. Eskom directly

provides electricity to about 45% of all end-users in South Africa. The other 55% is

resold by redistributors, including municipalities.

Eskom generates, transmits and distributes electricity to about five million customers

in the industrial, mining, commercial, agricultural and residential sectors, and to

redistributors. Eskom sells electricity directly to about 3 000 industrial customers, 1

000 mining customers, 49 000 commercial customers, 84 000 agricultural customers

and more than four million residential customers (of whom the majority are prepaid

customers). Most of the sales are in South Africa, with other Southern African

countries accounting for a small percentage. Additional power stations and major

power lines are being built to meet South Africa’s rising demand for electricity. Recent

successes have been the commercialization of the Sere wind farm (100MW) in March

2015, and the synchronisation of the first unit (794MW) at Medupi Power Station in

August 2015. By mid-2016, more than 6 000 km of new transmission lines had been

built and over 30 000 MVW in new substation capacity had been added to strengthen

the national power network.

The National Energy Regulator (NERSA) is South Africa’s energy regulator which

regulates the electricty industry as mandated chiefly by the Electricity Regulation Act,

2006 and the National Energy Regulatory Act, 2004, by providing licences, regulatory

rules, guidelines and codes.

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Eskom generates its revenue from different electricity users; Table 5.1 shows various types of electricity users from 2006 to 2015.

The electricity usage includes electricity used for domestic and street lighting, commercial, industrial, international, mining and

farming.

Table 5.1: Annual Average Eskom Prices by Customer Category in cents per kilowatt per hour (2007/8-2016/17)

Period Bulk Domestic and Street lighting

Commercial Industrial Mining Rural/Farming Traction/ Rail International Average for all

categories

2007/8 18.21 44.56 24.85 17.28 17.99 35.91 23.31 14.17 19.60

2008/9 23.29 53.43 31.61 21.69 23.12 45.78 29.78 18.45 24.97

2009/10 30.84 63.98 40.97 27.03 30.25 58.96 38.23 22.47 32.00

2010/2011 39.53 66.45 52.63 34.34 39.78 72.72 48.55 31.04 40.31

2011/2012 49.96 79.52 65.92 42.13 50.11 89.22 58.23 37.53 50.27

2012/2013 54.59 87.05 73.24 45.56 55.74 99.75 68.66 42.72 55.50

2013/2014 60.67 92.41 82.67 51.79 64.66 108.75 77.34 47.56 62.22

2014/2015 65.92 98.06 89.16 56.81 69.52 115.66 83.63 52.55 67.68

2015/2016 74.11 108.11 100.07 62.64 78.01 128.19 96.60 59.82 75.98

2016/2017 81.38 118.60 109.09 67.71 84.80 141.70 104.95 70.77 83.32

Source: Eskom

Explanatory Notes:

1. The data in this table is from various Eskom Statistical Yearbooks and Annual Reports.

2. The price data in this table is only applicable to Eskom's direct sales to the categories as listed. Sales by local authorities to the Domestic, Commercial and Industry categories are not

included in this table.

3. The prices are in c/kWh for each of a number of sales categories.

4. The real price was calculated by using the annual CPI with 2000 = 100 from 1970 till 2008 and 2008 = 100 from 2009 till 2011.

5. Prices are exclusive of VAT

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Figure 5.1 Annual Average Eskom Prices by Customer Category in cents per kilowatt per hour (2007/8-2016/17)

Source: Eskom

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Eskom’s tariffs are adjusted on an annual basis – previously on 1 January, but due to the

change in Eskom’s financial year price adjustments now take place on 1 April every year.

The average tariff adjustments for the past 10 years are indicated in Table 5.2 below.

Table 5.2 Eskom’s Average Tariff Adjustment

Period Average Price Adjustment (%) Consumer Price Index (%)

2007/8 5.9 5.2

2008/9 27.5 6.6

2009/10 31.3 6.2

2010/2011 24.8 5.4

2011/2012 25.8 4.5

2012/2013 16 5.2

2013/2014 8 6

2014/2015 8 6

2015/2016 12.7 5.7

2016/2017 9.4 6.6

Source: Eskom

Explanatory Notes: 1. Eskom’s average price tariffs were adjusted annually (calendar period: January to December) from 2002 to 2005

2. Eskom’s average price tariffs are adjusted at the end of the financial year (end of April) from 2005 to 2015

3. Eskom’s average tariff adjustment figures are published on Eskom’s website.

4. The adjustments are according to Eskom’s financial year end, which is end of the March.

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Figure 5.2: Annual Eskom Average Tariff Adjustment

Source: Eskom The electricity pricing scheme employed by NERSA is based on the multi-year pricing

determination (MYPD). The MYPD was implemented, based on Eskom’s cost recovery

requirements, such that the utility remains functioning and sustains itself economically. The

electricity price is the Eskom average tariff approved by NERSA, per kWh converted into

Rands per gigajoule. The average tariff approved by NERSA is an average of all Eskom’s

customer groupings. Bulk and industrial customers (a large proportion of consumers of piped

gas) pay less than the average Eskom Tariff.

As depicted in Figure 5.2 above, since 2008, the average tariff adjustments have always

been hovering above the CPI until 2016. NERSA approved a balance of R11 241m on 1

March 2016 for the Eskom Regulatory Clearing Account (RCA) which resulted in a 9.4%

increase for Eskom’s standard tariff customers from 1 April 2016, though Eskom applied for a

Regulatory Clearing Account (RCA) balance of R11.723bn. The RCA is a depository for

qualifying variances between the revenue and expenditure approved for Eskom in the

MYPD3 and its actual revenue and expenditure. The RCA is necessitated by the fact that the

revenue and expenditure approved for Eskom is largely based on forecasts.

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APPENDIX B: FUEL PROPERTIES Table B.2: Calorific Values of Various Fuels

Carrier Calorific Value Calorific Value Unit Density

LPG 26.7 MJ/l 0.54

Paraffin Power 37.5 MJ/l 0.81

Gas SASOL 18.0 MJ/m^3

Diesel 38.1 MJ/l 0.84

Electricity 3.6 MJ/kWh

Gas 41.0 MJ/m^3

Heavy Fuel Oil 41.6 MJ/l 0.98

Petrol 34.2 MJ/l 0.72

Paraffin Illuminating CSS

(StatsSA) Data

37.0 MJ/l 0.79

Aviation Gas 33.9 MJ/l 0.73

Jet Fuel 34.3 MJ/l 0.79

Coal Eskom Average 20.1 MJ/kg

Coal (General purpose) 24.3 MJ/kg

Coal (Coking) 30.1 MJ/kg

Coke 27.9 MJ/kg

Coke oven gas 17.3 MJ/m^3

Blast furnace gas 3.1 MJ/m^3

Bagasse (wet) 7.0 MJ/kg

Bagasse fibre (dry) 14.0 MJ/kg

Biomass (wood dry typical) 17.0 MJ/kg

Gas Sasol - methane rich 35.0 MJ/m^3

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APPENDIX C: UNIT CONVERSIONS Table C.3: Energy Unit Conversion Factors

From \ To J kWh toe Btu 1 J 1 0.278 x 10-6 0.2388 x 10-6 0.948 x 10-3

1 kWh 3.6 x 106 1 0.86 x 10-6 3.412 x 103

1 toe 42 x 109 11630 1 39.68 x 106

1 Btu 1.055 x 103 0.293 x 10-3 0.252 x 10-9 1

Note: toe = ton oil equivalent

Table C.4: Unit Prefixes

Prefix Symbol Power

Kilo k 103

Mega M 106

Giga G 109

Tera T 1012

Peta P 1015

Exa E 1018

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References 1. Africa Mining IQ, 2015, Coal Mines in South Africa, viewed 15 March 2015, from

http://www.projectsiq.co.za/coal-mines-in-south-africa.htm.

2. Competition Commission, 2014, Liquefied Petroleum Gas Market Inquiry Terms Of

Reference, Pretoria.

3. Department of Mineral and Energy (DME), 2003, Working Rules to Administer the

Basic Fuels Price (BFP) Methodology, Annexure A & Annexure B, Pretoria.

4. Department of Energy, 2010, South African Energy Synopsis 2010, Pretoria, p.37.

5. Department of Energy, 2010, Electricity Regulations on the Integrated Resource Plan

2010-2030, Pretoria, p.62.

6. Department of Energy, 2013, Transformation of the Gas Sector, presentation by Chief

Director: Hydrocarbons Policy, dated 13 August 2013, Pretoria.

7. Greenpeace, The Advanced Energy Revolution: A sustainable energy outlook for

South Africa, viewed 15 February 2015, from

http://www.greenpeace.org/africa/en/News/news/The-Advanced-Energy-Revolution-

Report/

8. International Development Research Centre, 2010, Chapter 2: Cheap energy—at

what cost? Externalities in South Africa’s electricity sector, viewed 16 September

2010, from http://www.idrc.ca/en/ev-138013-201-1-DO_TOPIC.html.

9. IHS Global Insight, Electricity Crisis in South Africa Intensifies, viewed 10 September

2010, from http://www.ihsglobalinsight.co.za/News/news.asp?id=720.

10. NERSA, 2012, Annual Report 2011/2012, Pretoria.

11. NERSA, 2013, Approval of maximum prices application from Sasol Gas, Pretoria.

12. NERSA, 2012, Approval of the methodology to approve maximum prices of piped-gas

and the determination of inadequate competition in the piped-gas market, Pretoria.

13. PricewaterhouseCoopers, 2013, The Gas Equation, viewed 13 July 2013, from

www.pwc.co.za/industries/oil-gas-energy.

14. SAPIA, 2010, Basic fuel price (BFP) formula, viewed 14 January 2011, from

http://www.sapia.co.za/pubs/bfp.htm.

15. South African Reserve Bank, 2015, Quarterly Bulletins 2013, Pretoria.