The economic boom in South Africa following the 1994 democratisation led to increased welfare of the citizens and their purchasing power. This further resulted in increase in electricity consumption. The electricity supply did not increase proportionally to the increase in electricity consumption leading to the 2008 shortage of electricity which nearly damaged the power generating circuit. The literature review has shown that electricity supply and consumption have a positive impact on economic growth. It further showed that employment enhances economic growth. Conversely, it showed that power outages negatively affect economic growth. The research serves to investigate the relationship between electricity supply and economic growth in South Africa and to examine the impact of power outages on economic growth. It also seeks to find the appropriate structure for electricity supply industry that will lead to increase in economic growth. The autoregressive distributed lag (ARDL) bounds approach was used to find the relationship between economic growth, electricity supply, power outages and employment using quarterly data from 2000 to 2012. The ARDL technique was chosen over the conventional models such as Johansen technique for the research because it uses a single reduced form of equation to examine the long run relationship of the variables as opposed to the conventional Johansen test that employs a system of equations. The ARDL technique is also suitable to use to test co-integration when a small sample data is used and does not require the underlying variables to be integrated of similar order. The Vector Error Correction Model (VECM) Granger causality was also employed in the study to establish the causality between economic growth and electricity supply. It was chosen for its ability to develop longer term forecasting, when dealing with an unconstrained model. The results from the ARDL bounds test showed that there is a long run relationship between economic growth, electricity supply, power outages and employment. Based on the causality tests, the findings showed a unidirectional causality flowing from electricity supply to economic growth. This implies that electricity supply affect economic growth in South Africa. The results further showed no causality flowing from economic growth to electricity supply which indicates that when economic growth is booming fewer funds are used for improvement of the electricity generation. Lastly, the results showed that power outages negatively affect economic growth in the long run. To sum up, electricity supply is an important factor for economic growth in South Africa. It is therefore necessary that South Africa must put in place measures aimed at stimulating electricity supply. One of the measures aimed at increasing output of electricity is to unbundle the electricity sector. This process involves allowing entry of the Independent Power Producers (IPPs), Independent System Operator (ISO) and Regional Electricity Distributors (REDs). This will lead to increased supply of electricity and competitively lower prices of electricity. The study further recommends that renewable energy sources should be used to produce electricity instead of coal and nuclear fuels as they failed to produce enough electricity for the nation.

M.Ing. / In a country that ranks forty seventh on a list of fifty countries in a world competitive survey economic growth should be a high priority in South Africa. The main player in South Africa's energy industry took up the gauntlet and is moving to economic growth with the vision 'to provide the world's cheapest electricity for growth and prosperity." Competition was introduced among the electricity producers by a process called trading and brokering. Majuba power station, the most expensive electricity producer on the South African grid, was left out in the cold. Management of Majuba is challenged to derive resourceful strategies to ensure sustained profitability. These strategies will require a study into world trends to enable them to be more competitive. Crystal ball gazing is not needed to know that major restrictions on pollution of the atmosphere by industry will be curbed by stringent legislation. The current electrification programme in South Africa is bound to impact the shape of the daily load curve. Labour cost and the rate of inflation have been increasing and can be expected to keep on rising in the foreseeable future. It is important to know what macro effect these factors will have on the South African power industry. Majuba must be able to identify the changes lurking on the horizon and have contingency plans in place to meet these challenges. In this work different types of plant needed to meet the daily load demand are researched from literature. It is then compared to the types of plant installed in South Africa. This leads to the conclusion that the installed plant in South Africa is not sufficient to meet the daily demand effectively. A case study is done on Majuba Power Station that has been operating in a two shifting mode since December 1996. This means that the units is started every day to be on full load in time for morning peak and then shut down after evening peak. It is also shown that this mode of operation is proffitable for a relatively expensive power generator.

High-income households are important for advancing energy efficiency in South Africa and yet little is known about how to encourage lower energy use behaviour in this group. This paper sets out the case for wide-scale research into how to encourage high-income earners to be more energy efficient behaviour in the home and presents the results of a prototype study. Behaviour change research offers no one framework for investigating behaviour in this group. However, the Theory of Planned Behaviour is a model, which has been successfully employed to understand and formulate behaviour interventions across a wide range of subject, including household energy use. In order to understand the potential of this model as a way of investigating how to encourage energy efficient household behaviour of high-income earners, a study investigating the model's practical and theoretical issues and benefits was undertaken . Component A sets the case for the important role high-income earners can play in achieving energy efficiency targets, summarises the history of relevant psychological research and establishes a methodology for the study. Component B summarises the case for the study and presents the research results and lessons learned in the style of a journal paper. The results suggest that the model has promise. Attitudes, Subjective Norms and Perceived Behavioural Controls accounted for 63.7% of the variance in intention of the sample to be energy efficient in the home. However, the study indicates that the model, although useful, is not sufficient for understanding actual behaviour and informing appropriate practica l interventions. Consequently a number of suggestions are made as to how to design a future research approach. / Thesis (M.Env.Dev.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.