Annual Forum Papers

Regulated Prices: Is the Process Right? An Analysis of Administered Prices in South Africa

  • Year: 2003
  • Author(s): David Storer
  • Countries and Regions: South Africa

This report was prepared for National Treasury to support its assessment of administered prices in South Africa. The objective of the study was to assess the processes involved in setting prices in regulated industries. By evaluating the efficiency, effectiveness and analytical rigour of the regulatory processes involved in setting prices for the services involved, an assessment can be made of the likelihood that the resultant tariffs approach efficient levels. Volume I of the report sets out the main findings and recommendations with supporting information relating to the individual sectors included within the scope of the study provided in a summarised form. Volume II contains more detailed sectoral reports, covering individual review of the water, electricity, telecommunications, transport, health and education sectors.

The report does not offer a detailed quantitative assessment of the performance of the regulatory regime, and is largely based on in-depth interviews and documentary analysis. The authors would like to thank the interviewees for their cooperation and valuable insights. Although much care was taken to provide a correct reflection of the opinions expressed, the authors remain entirely responsible for any inaccuracies. The project was coordinated by Trade and Industrial Policy Strategies (TIPS) and generous funding of the project was provided by DFID, as part of its Support for Restructuring of State-Owned Enterprises in South Africa Project.