Eskom is South Africa's monopoly power producer, wUse relevant diagramshich the majority of South Africans depend on. An empirical study was conducted by Nkosi (2020) on the relationship between Eskom's debt and government debt. Using a Vector Autoregressive (VAR) Model, the study found that the electricity price explains 29.51% revenue of the forecast error variance in Eskom's revenue. This means 29.51% of Eskom's revenue is from increase in the electricity price.

* Suppose there is an introduction of another power producer and Eskom increases its electricity price.

* what is the impact on the demand for alternative power?