Measuring the allocation of Eskom's productivity dividend

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Periodical article

Title:	Measuring the allocation of Eskom's productivity dividend
Authors:	Lawrence, Denis A. Van Der Westhuizen, Gert
Year:	2008
Periodical:	South African Journal of Economics
Volume:	76
Issue:	3
Pages:	537-547
Language:	English
Geographic term:	South Africa
Subjects:	public services electricity financial management productivity
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2008.00195.x/pdf
Abstract:	Eskom, South Africa's electricity public utility, established in 1923, is the largest producer of electricity in Africa. The methodology developed by D. Lawrence, W.E. Diewert and K.J. Fox (2006) and D. Lawrence and A. Richards (2004) is used to determine the contribution of productivity and price changes to changes in Eskom's profitability over time. This methodology enables the calculation of the distribution of the benefits of Eskom's productivity improvements - its 'productivity dividend' - among the three key stakeholder groups: consumers, input suppliers (including employees) and Eskom's owners. The results of the study show that Eskom passed on substantially more than the benefits from productivity improvements over the 10-year period from 1993 to 2002 to consumers in the form of real price reductions and to labour in the form of higher real wages. Bibliogr., notes, sum. [Journal abstract]