Final Remarks on Eskom’s Characteristics of a Monopoly

Some of the characteristics of a monopoly are a Single firm selling all output in a market and Unique product Restrictions on the entry and exit of firms in an industry. Such barriers include patents, licenses, the limited size of the market, and exclusive ownership of raw materials. However, in the modern era of globalization, local monopolists are increasingly subject to the international competition which limits their monopoly power Specialised information about the production techniques is unavailable to other potential producers All the above characteristics imply that a monopoly has extensive market control In South Africa we have several examples of monopolies perhaps the best-known example is Eskom is a South African electricity public utility, established in 1923 as the Electricity Supply Commission (ESCOM)by the government of South Africa in terms of the Electricity Act (1922). If you want Electricity in your house you cannot go to n. of suppliers You must either ask Eskom or Do without electricity Eskom operates a number of notable power stations, including kendal power station and koeberg nuclear power station in the Cape Province, the only nuclear power plant in Africa. The company is divided into Generation, Transmission and Distribution divisions and together Eskom.