Power & Utilities 

In mid-January 2008, nationwide power outages occurred and lasted approximately four weeks. The economic costs of the outages are estimated to range from US$253 million to US$282 million with approximately half representing mining losses. Although the cost of electricity in South Africa is among the world's lowest, the country's strong economic growth, rapid industrialisation and a mass electrification programme has led to demand for power outstripping supply. (Source: Energy Information Agency www.eia.doe.gov).

De Buys Scott

De Buys Scott

Clients and Sectors: Infrastructure

+27 (0)11 647 8982

Globally and domestically, the big challenge is the shrinking gap between energy supply and demand. In South Africa, specific issues include:

 

  • Supply and demand growth in the power sector is a reflection of population expansion, increased economic activity and changing energy intensity/efficiency.

 

  • South Africa has cheap electricity. However, pricing reform is underway, which could affect patterns of consumption.

 

  • Natural monopoly areas of transmission and distribution characterise the sector, in which industry regulators are increasing the pressure on operators to both improve their efficiency and customer performance standards.

 

  • The need for private sector investment in new or privatised infrastructure is becoming a vital component of economic growth.


How we can help


Through KPMG’s Global Energy Institute, power and utility professionals assist organisations across the energy supply chain.


Our services cover:

 

  • Financial statement audit and accounting advice
  • Information technology assurance and advisory
  • Tax compliance and advisory (corporate, indirect, expatriate)
  • R&D concessions
  • Capital and operating expenditure monitoring
  • Corporate governance support
  • Forensic support and dispute advisory services
  • Business process improvement
  • Internal audit, risk and control services
  • Sustainability and climate change advisory
  • Capital structure efficiency and debt advisory
  • Transaction opportunity identification and negotiation support
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  • Corporate finance and valuations.