Electricity distribution industry restructuring in South Africa: A case study

For 20 years there has been vigorous debate about restructuring the large, developed electricity industry in South Africa, but the plans have not been implemented. The justification of the proposed restructuring illustrates the different expectations of the participants in the electricity industry. The case study reviews what has occurred against a background of some theories about organisations, and identifies six key issues. Some lessons include the need to adopt an industry structure compatible with the objectives of electricity distribution in developing countries, the unsuitability of orthodox approaches to organisations, that no industry structure appears to be significantly better than others, industry restructuring of public sector utilities has a significant political dimension, restructuring can fail even if there is support from a high level of government, and indecision and uncertainty have serious negative consequences. The experience should be helpful for other developing countries considering structural change of their electricity industry.