The high levels of inequality which characterize the South African political economy are reflected in its patterns of energy use and consequent environmental impacts. In spite of significant overcapacity on the national electricity grid, two-thirds of households do not have access to electricity, and rely instead on dirtier and less convenient fuels, such as coal. As a result, urban air quality is severely degraded, with health guidelines for concentrations of particulate matter frequently being exceeded. Adverse effects on residents' health have been observed. On the whole, the impacts of a national electrification initiative are likely to be positive, although a complete switch to electricity may not occur immediately. It is argued that efficiency measures should form part of an electrification initiative to ameliorate environmental costs. Finally, this paper considers some investment implications of mass electrification and concludes that the electricity supply industry itself has the means to bring about more equitable access to electricity services for the urban poor.
