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

Members

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

Price Development

Effects of Increase

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

Thank You