1. PAMSA Presentation to NERSA - Public Hearing in Durban at the ICC
18 January 2010

2. 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.

3. Traditionally PAMSA’s activities are primarily in the following areas:
Government
Industry promotion
Education
Technical
Environment

4. Members

5. 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 – , Direct

6. Price Development
Source – US Energy Information Administration

7. Price Development

8. Effects of Increase

9. 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

10. Thank You