Introduction

The period of the Nelson Mandela administration coincided with a recovery in Eskom's reputation, as tariff reductions erased memories of the hikes that occurred in the 1970s and 1980s. Also the first member of Mandela's African National Congress to occupy the position, Manuel succeeded banker Chris Liebenberg, who was perceived by the markets as a safe pair of hands. South Africa's power surplus had arisen as a result of a consistent overestimation of demand growth for the 1980s and beyond by planners at the Electricity Supply Commission (Escom), now Eskom. The commission's recommendations led to changes in the Electricity Act in 1985 and to new Eskom and Electricity Acts in 1987. Eskom also entered into a pricing compact with the government, whereby it committed itself to a price decrease of 20% between 1992 and 1996, and a 15% reduction between 1994 and 2000. This chapter also presents an overview of the key concepts discussed in this book.