In 2008, South Africa experienced a severe electricity crisis. Domestic and industrial electricity users had to suffer from black outs all over the country. It is argued that partially the reason was the lack of research on energy, locally. However, Eskom argues that the lack of capacity can only be solved by building new power plants.The objective of this study is to fill part of the gap of the energy research in the country. By using the Engle Granger methodology for co-integration and Error Correction Models, the variables that explain the aggregate electricity use in South Africa during the period 1980-2005 are examined. Furthermore, we make conditional forecasts of electricity consumption based on the current energy policiesThe findings indicate that there is a long run relationship between electricity consumption and price as well as economic growth/income. The last few years in South Africa, price elasticity was rarely taken into account because of the low and decreasing prices in the past. The short-run dynamics of the system are affected by population growth, too After the energy crisis, Eskom, the national electricity supplier, is in search for substantial funding in order to build new power plants that will help with the envisaged lack of capacity that the company experienced. By using two scenarios for the future of growth, this study shows that the electricity demand will drop substantially due to the price policies agreed -until now-by Eskom and the National Energy Regulator South Africa (NERSA) that will affect the demand for some years.