List of fact sheets • Statistical tables, which include: – Ten years’ information for technical KPIs – Five years’ information for non-technical KPIs – Power station capacities at 31 March 2015 – Information on power lines and substations – Customer information such as number of customers, electricity sales and revenue per customer category – Environmental implications of using or saving electricity • Eskom’s energy flow diagram • Full Eskom benchmarking information • Leadership activities, including Board and Exco members’ qualifications, significant directorships and meeting attendance • Full list of stakeholder issues mapped to who raised them • King III checklist noting exceptions or partial application • Declaration in terms of Section 32 of PAIA Statistical table 1A Ten year technical statistics Measure and unit 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 Safety Employee lost-time injury rate (LTIR), index 0.33RA 0.31RA 0.40 RA 0.41RA 0.47RA 0.54 RA 0.50 0.46 0.52 0.40 Fatalities (employees and contractors), number 10 23RA 19 RA 24 RA 25RA 17RA 27 29 26 23 Employee fatalities, number 3 5RA 3RA 13RA 7RA 2RA 6 17 8 10 Contractor fatalities, number 7 18 RA 16RA 11RA 18 RA 15RA 21 12 18 13 Supply and demand Total power station capacity – installed, MW 44 281 44 189 44 206 44 115 44 145 44 175 44 193 43 037 42 618 42 011 Total power station capacity – nominal, MW 42 090 41 995 41 919 41 647 41 194 40 870 40 506 38 747 37 764 36 398 Peak demand on integrated Eskom system, MW 34 768 34 977 35 525 36 212 36 664 35 850 35 959 36 513 34 807 33 461 Peak demand on integrated Eskom system, including load reductions and non-Eskom generation, MW 36 170 36 002 36 345 37 065 36 970 35 912 36 227 37 158 35 441 33 461 National rotational load shedding Yes YesRA NoRA NoRA NoRA NoRA Yes – – – Demand savings, MW 171.5RA 409.6RA 595.0 RA 365.0 RA 354.1 – – – – – Internal energy efficiency, GWh 10.4RA 19.4 RA 28.9 RA 45.0 RA 26.2RA – – – – – Electricity output Power sent out by Eskom stations, GWh (net) 226 300 231 129 232 749 237 289 237 430 232 812 228 944 239 109 232 445 221 988 Coal-fired stations, GWh (net) 204 838 209 483 214 807 218 210 220 219 215 940 211 941 222 908 215 211 206 606 Hydroelectric stations, GWh (net) 851 1 036 1 077 1 904 1 960 1 274 1 082 751 2 443 1 141 Pumped storage stations, GWh (net) 3 107 2 881 3 006 2 962 2 953 2 742 2 772 2 979 2 947 2 867 Gas turbine stations, GWh (net) 3 709 3 621 1 904 709 197 49 143 1 153 62 78 Wind energy, GWh (net) 1 2 1 2 2 1 2 1 2 3 Nuclear power station, GWh (net) 13 794 14 106 11 954 13 502 12 099 12 806 13 004 11 317 11 780 11 293 IPP purchases, GWh 6 022 3 671 3 516 4 107 1 833 – – – – – Wheeling, GWh1 3 623 3 353 2 948 3 099 3 423 3 175 – – – – Total imported for Eskom system, GWh1 10 731 9 425 7 698 9 939 10 190 10 579 12 189 11 510 11 483 10 310 Total electricity available (generated by Eskom and purchased), GWh 246 676 247 578 246 911 254 434 252 876 246 566 241 133 250 619 243 928 232 298 Total consumed by Eskom, GWh 2 4 114 3 862 4 037 3 982 3 962 3 695 3 816 4 136 3 937 3 814 Total available for distribution, GWh3 242 562 243 716 242 874 250 452 248 914 242 871 237 317 246 483 239 991 228 484 Sales and revenue Total sales, GWh3 216 274 217 903 216 561 224 785 224 446 218 591 214 850 224 366 218 120 207 921 (Reduction)/growth in sales, % (0.7) 0.6 (3.7) 0.2 2.7 1.7 (4.2) 2.9 4.9 – Electricity revenue, R million 146 268 136 869 126 663 112 999 90 375 69 834 52 996 43 521 39 389 35 513 Growth in revenue, % 6.9 8.1 12.1 25.0 29.4 31.8 21.8 10.5 10.9 – Customer statistics Arrear debt as % of revenue, % 2.17 1.10 0.82 0.53 0.75 0.83 1.54 – – – Debtors days – municipalities, average debtors’ days 47.6 32.7 22.4 – – – – – – – Debtors days – large power top customers excluding disputes, average debtors’ days 16.0 14.5 12.3 14.4 15.5 15.4 16.5 – – – Debtors days – other large power users (<100 GWh p.a.), average debtors’ days 17.0 16.9 18.3 – – – – – – – Debtors days – small power users (excluding Soweto), average debtors’ days 49.1 50.2 48.2 42.9 45.1 40.5 47.5 – – – Eskom KeyCare, index 108.7 108.7 105.8 105.9 101.2 98.1 101.2 –4 105.0 109.0 Enhanced MaxiCare 99.8 92.7 93.2 90.7 89.4 93.0 92.8 89.2 93.9 96.5 RA Reasonable assurance provided by the independent assurance provider. Refer to pages 119 to 121 of the integrated report. 1. Prior to 2009/10, wheeling was combined with the total imported for the Eskom system. 2. Used by Eskom for pumped storage facilities and synchronous condenser mode of operation. 3. Difference between electricity available for distribution and electricity sold is due to energy losses. 4. The KeyCare index was not reported in 2008 due to difficulties in obtaining credible data as a result of load shedding. Integrated report | 31 March 2015 1 Statistical table 1A Ten year technical statistics continued Measure and unit 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 Asset creation Generation capacity installed: first synchronisation, units 1RA – – – – – – – – – Generation capacity installed and commissioned, MW 100 RA 120 RA 261RA 535RA 315RA 452RA 1 770 1 043 1 351 290 Power lines installed, km 318.6RA 810.9 RA 787.1RA 631.3RA 443.4 RA 600.3RA 418.3 480.0 430.0 237.0 Substation capacity installed and commissioned, MVA 2 090 RA 3 790 RA 3 580 RA 2 525RA 5 940 RA 1 630 RA 1 375 1 355 1 000 1 090 Generation capacity milestones (Medupi, Kusile and Ingula), days 59.56RA 48.90 RA 43.48 – – – – – – – Total capital expenditure – group (excluding capitalised borrowing costs), R billion 53.1RA 57.1RA 60.1 58.8 47.9 48.7 43.7 24.0 17.5 10.8 Plant performance Normal unplanned capability loss factor (UCLF), % 15.22RA 12.61RA 12.12RA 7.97RA 6.14 RA 5.10 RA 4.38 5.13 4.34 – Constrained unplanned capability loss factor, % 1.00 1.63 3.41 – – – – – – – Underlying unplanned capability loss factor, % 14.22 10.98 8.71 – – – – – – – Normal planned capability loss factor (PCLF), % 9.91RA 10.50 RA 9.10 9.07 7.98 9.04 9.54 – – – Underlying planned capability loss factor, % 10.17RA 10.77 – – – – – – – – Energy availability factor (EAF), % 73.73RA 75.13RA 77.65RA 81.99 RA 84.59 RA 85.21 85.32 84.85 87.50 87.40 Unit capability factor (UCF), % 74.87 76.90 RA 78.80 RA 83.00 RA 85.90 RA 85.90 86.10 86.20 88.60 88.70 Generation load factor, % 61.5 62.8 63.6 65.1 66.4 66.2 67.0 72.3 72.4 69.7 OCGT load factor, % 17.6 19.3RA 10.4 RA 3.9 1.1 0.3 – – – – Integrated Eskom system load factor (EUF), % 83.4 83.6 81.9 79.4 78.5 77.7 78.6 85.2 82.7 79.8 Network performance Total system minutes lost for events <1 minutes, minutes 2.85RA 3.05RA 3.52RA 4.73RA 2.63RA 4.09 RA 4.21 3.56 3.67 3.59 Major incidents, number 2 0 RA 3RA 1RA 0 RA 1RA 3 5 2 5 System average interruption frequency index (SAIFI), events 19.7RA 20.2RA 22.2RA 23.7RA 25.3RA 24.7RA 24.2 33.7 25.2 28.4 System average interruption duration index (SAIDI), hours 36.2RA 37.0 RA 41.9 RA 45.8 RA 52.6RA 54.4 RA 51.5 73.7 51.4 48.5 Total energy losses, % 8.8 8.9 9.1 8.7 8.3 8.5 7.9 8.0 8.4 8.2 Transmission energy losses, % 2.5 2.3RA 2.8 RA 3.1RA 3.3RA 3.3 3.1 3.1 – – Distribution energy losses, % 6.8 7.1RA 7.1RA 6.3RA 5.7RA 5.9 5.5 5.5 – – Coal statistics Coal stock, days 51 44 RA 46RA 39 RA 41RA 37RA 41 13 29 35 Coal burnt, Mt 119.2 122.4 123.0 125.2 124.7 122.7 121.2 125.3 119.1 112.1 Average calorific value, MJ/kg 19.68 19.77 19.76 19.61 19.45 19.22 19.10 18.51 19.06 19.58 Average ash content, % 27.63 28.56 28.69 28.88 29.03 29.56 29.70 29.09 29.70 29.10 Average sulphur content, % 0.80 0.87 0.88 0.79 0.78 0.81 0.83 0.87 0.86 0.88 Overall thermal efficiency, % 31.4 31.3 32.0 31.4 32.6 33.1 33.4 33.4 33.9 33.8 Road-to-rail migration (additional tonnage transported on rail), Mt 12.59RA 11.60 RA 10.10 RA 8.50 7.10 5.10 4.30 4.35 3.89 2.49 Liquid fuels Diesel and kerosene, M ℓ 1 178.6 1 148.5RA 609.7RA 225.5RA 63.6RA 16.1RA 28.9 345.9 11.3 25.3 RA Reasonable assurance provided by the independent assurance provider. Refer to pages 119 to 121 of the integrated report. Integrated report | 31 March 2015 2 Statistical table 1A Ten year technical statistics continued Measure and unit 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 Environmental statistics Legal contraventions Environmental legal contraventions, number 18 34 RA, 1 48 50 63 55 114 46 50 55 Environmental legal contraventions reported in terms of the Operational Health Dashboard, number 1 2 RA 2 5 4 0 12 6 2 0 2 12 Water Specific water consumption, ℓ/kWh sent out 3 1.38 RA 1.35RA 1.42RA 1.34 RA 1.35RA 1.34 RA 1.35 1.32 1.35 1.32 Net raw water consumption, M ℓ 313 078 317 052 334 275 319 772 327 252 316 202 323 190 322 666 313 064 291 516 Emissions Carbon dioxide (CO2), Mt4 223.4 233.3RA 227.9 RA 231.9 RA 230.3RA 224.7RA 221.7 223.6 208.9 203.7 Sulphur dioxide (SO2), kt4 1 834 1 975RA 1 843RA 1 849 RA 1 810 RA 1 856RA 1 874 1 950 1 876 1 763 Nitrous oxide (N2O), t4 2 919 2 969 2 980 2 967 2 906 2 825 2 801 2 872 2 730 3 134 Nitrogen oxide (NO x) as NO2 , kt 5, 6 937 954 RA 965RA 977RA 977RA 959 RA 957 984 930 877 Particulate emissions, kt 82.34 78.92RA 80.68 RA 72.42RA 75.84 RA 88.27RA 55.64 50.84 46.08 45.76 Relative particulate emissions, kg/MWh sent out4 0.37RA 0.35RA 0.35RA 0.31RA 0.33RA 0.39 RA 0.27 0.21 0.20 0.21 Waste Ash produced, Mt 34.41 34.97RA 35.30 RA 36.21RA 36.22RA 36.01RA 36.66 36.04 34.16 33.40 Ash sold, Mt 2.5 2.4 2.4 2.3 2.0 2.0 2.1 2.4 2.2 1.8 Ash (recycled), % 7.3 7.0 RA 6.8 RA 6.4 RA 5.5RA 5.6 5.7 6.7 6.4 5.4 Asbestos disposed, tons 991.0 458.0 374.6 448.1 611.5 321.4 3 590.8 321.0 6 060.0 – Material containing polychlorinated biphenyls thermally destroyed, tons 0 10.2 0.9 14.3 422.9 19.1 505.6 17.0 10.0 – Nuclear Public individual radiation exposure due to effluents, mSv7 0.0010 0.0012 0.0019 0.0024 0.0043 0.0040 0.0045 0.0047 0.0034 0.0049 Low-level radioactive waste generated, cubic metres 164.1 180.7RA 188.2RA 184.7RA 165.3RA 137.8 140.8 180.3 94.5 90.2 Low-level radioactive waste disposed of, cubic metres 377.6 324.0 RA 54.0 RA 53.8 RA 81.0 RA 216.0 189.0 270.0 135.0 161.8 Intermediate-level radioactive waste generated, cubic metres 27.6 28.7RA 35.7RA 25.4 RA 39.3RA 47.1 23.9 16.5 49.8 52.7 Intermediate-level radioactive waste disposed of, cubic metres 138.0 178.0 RA 0.0 RA 128.0 RA 0.0 RA 266.0 473.6 418.0 436.0 228.0 Used nuclear fuel, number of elements discharged 8 112 48 56 60 112 56 56 112 56 52 Used nuclear fuel, number of elements discharged, cumulative figure 2 173 2 061 2 013 1 957 1 897 1 785 1 729 1 673 1 561 1 505 RA Reasonable assurance provided by the independent assurance provider. Refer to pages 119 to 121 of the integrated report. 1. The March 2014 comparative has increased from 32 to 34 due to legal contraventions being reclassified when the investigations were finalised. 2. Reported in terms of the 2002 definition of the Operational Health Dashboard. From 2008, repeat legal contraventions are included. 3. Volume of water consumed per unit of generated power sent out by commissioned power stations. 4. Calculated figures are based on coal characteristics and power station design parameters are based on coal analysis using coal burnt tonnages. 5. Figures include coal-fired and gas turbine power stations, as well as oil consumed during power station start-ups and, for carbon dioxide emissions, includes the underground coal gasification pilot plant. 6. NOx reported as NO2 is calculated using average station-specific emission factors (which are measured intermittently) and tonnages of coal burnt. 7. The limit set by the National Nuclear Regulator is ≤ 0,25mSv. 8. The gross mass of a nuclear fuel element is approximately 670 kg, with UO2 mass, typically between 462kg and 464kg. Integrated report | 31 March 2015 3 Statistical table 1B Five year non-technical statistics Company Group Measure and unit 2014/151 2013/141 2012/13 2011/12 2010/11 2014/151 2013/141 2012/13 2011/12 2010/11 Finance Electricity revenue per kWh (including environmental levy), c/kWh 67.91 62.81 58.49 50.27 40.27 Electricity operating cost per kWh (including depreciation and amortisation), c/kWh 67.52 59.67 54.15 41.28 32.78 Cost of electricity (excluding depreciation), R/MWh2 610.43RA 541.92RA 496.24 RA 374.19 RA 296.36RA Electricity EBITDA margin, % 16.91 17.17 11.48 26.87 25.33 EBIT (before profit/(loss) on embedded derivatives), R million 9 424 9 414 10 694 21 343 17 098 9 776 11 029 9 896 21 985 17 651 Interest cover ratio2 0.44RA 0.65RA 0.27RA 3.27RA 1.40 RA 0.47 0.77 0.22 3.35 1.45 Working capital ratio 0.82 0.70 0.67 0.76 0.82 0.81 0.71 0.68 0.76 0.85 Gross debt/EBITDA, ratio 13.32 11.84 15.37 6.46 7.70 13.05 11.06 16.20 6.46 7.55 Debt/equity (including long-term provisions), ratio2 2.70 RA 2.21RA 1.96RA 1.69 RA 1.66RA 2.37 1.94 1.84 1.57 1.61 Free funds from operations, R million 36 032 29 528 19 105 30 503 16 461 36 179 31 158 18 108 30 483 16 953 Free funds from operations as % of total debt, %2 2.37RA 9.21RA 8.55 15.06 12.55 11.00 11.22 8.04 15.15 9.51 Debt service cover, ratio 0.82 1.22 2.05 3.50 3.63 0.92 1.20 2.01 3.50 1.90 Transformation Socio-economic contribution Corporate social investment committed, R million 115.5 132.9 RA 194.3RA 87.9 RA 62.3RA Corporate social investment expended, R million 107.6 115.4 RA 126.5RA 40.8 67.7 Corporate social investment, number of beneficiaries 323 882 357 443RA 652 347RA 531 762 303 983 Job creation, number 25 875 25 181RA 35 759 28 616 21 477 Total number of electrification connections, number 159 853LA 201 788 RA 139 881 154 250 145 360 Employment equity Disabilities, number of employees 1 294 1 283RA 1 126RA 1 022RA 1 002 1 325 1 305RA 1 137RA 1 032RA 1 012 Employment equity – disability, % 3.12RA 2.99 RA 2.59 RA 2.49 RA 2.53 2.83 2.80 RA 2.43RA 2.36RA 2.36 Racial equity in senior management, % black employees 61.58 RA 59.50 RA 58.30 RA 53.90 RA 52.50 61.70 59.30 RA 58.40 – – Racial equity in professionals and middle management, % black employees 72.28 RA 71.20 RA 69.60 65.69 64.10 71.77 70.60 RA 69.00 – – Gender equity in senior management, % female employees 29.83RA 28.90 RA 28.20 RA 24.31RA 23.50 29.82 28.80 RA 28.50 – – Gender equity in professionals and middle management, % female employees 36.10 RA 35.80 RA 34.60 32.43 31.60 35.29 34.90 RA 34.00 – – Procurement equity Local content contracted (Eskom-wide), % 25.13 40.80 – – – Local content contracted (new build), % 33.62LA 54.60 RA 80.20 RA 77.20 RA 79.70 RA B-BBEE attributable expenditure, R billion 120.8 125.4 RA 103.4 RA 72.13RA 41.86RA 128.3 119.4 RA 96.0 RA – – Black women-owned expenditure, R billion 8.9 9.6RA 5.7RA 3.27RA 3.46RA 9.3 9.8 RA 6.0 RA – – Black-owned expenditure, R billion 47.5 43.6RA 26.47RA 14.38 RA – 49.4 45.8 RA – – – Black youth-owned expenditure, R billion 0.9 1.3RA 1.20 RA – – 0.9 1.3RA – – – Procurement from B-BBEE compliant suppliers, % 88.89RA 93.90 RA 86.30 RA 73.20 RA 52.30 89.39 91.80 RA 82.10 RA – – Procurement from black-owned suppliers, % 34.91 32.70 RA 22.10 14.60 – 34.41 35.30 RA – – – Procurement from black women-owned suppliers, % 6.61 7.20 RA 4.70 RA 3.30 RA 4.30 6.49 7.50 RA 5.10 RA – – Procurement from black youth-owned suppliers, % 0.64LA 1.00 RA 1.00 – – 0.63 1.00 RA – – – Procurement spend with suppliers owned by black people living with disability (BPLwD), % of TMPS 0 0 – – – 0 0 – – – Procurement spend with qualifying small enterprises (QSE) and exempted micro enterprises (EME), % of TMPS 11.86 11.90 – – – 12.53 15.09 – – – Building skills Training spend as % of gross employee benefit costs 6.18 RA 7.87RA – – – Total engineering learners in the system, number 1 315 1 962RA 2 144 RA 2 273RA 1 335 Total technician learners in the system, number 826 815RA 835RA 844 RA 692 Total artisan learners in the system, number 1 752 2 383RA 2 847RA 2 598 RA 2 213 Learners throughput or qualifying, number 424RA – – – – RA Reasonable assurance provided by the independent assurance provider. Refer to pages 119 to 121 of the integrated report. LA Limited assurance provided by the independent assurance provider. Refer to pages 119 to 121 of the integrated report. 1. A review of the nature and classification of balances, cash flows and related ratios was undertaken as a consequence of changes in the group’s operational environment and circumstances, particularly with regard to the capital expansion programme review, and updates were made to some classifications and definitions to better reflect their current nature. Performance indicators for 2013/14 have been updated for ease of comparability. 2. Shareholder compact measures for 2014/15 were calculated on the same basis as the targets set by the shareholder for ease of comparison. Integrated report | 31 March 2015 1 Statistical table 2 Power station capacities at 31 March 2015 The difference between installed and nominal capacity reflects auxiliary power consumption and reduced capacity caused by the age of plant. Number and installed Total Total Years commissioned capacity of generator sets installed capacity nominal capacity Name of station Location first to last unit MW MW MW Base-load stations Coal-fired (13) 37 754 35 721 Arnot Middelburg Sep 1971 to Aug 1975 1x370; 1x390; 2x396; 2x400 2 352 2 232 Camden1, 2 Ermelo Mar 2005 to Jun 2008 3x200; 1x196; 2x195; 1x190; 1x185 1 561 1 481 Duvha eMalahleni Aug 1980 to Feb 1984 6x600 3 600 3 450 Grootvlei1 Balfour Apr 2008 to Mar 2011 4x200; 2x190 1 180 1 120 Hendrina 2 Middelburg May 1970 to Dec 1976 5x200; 2x195; 2x170; 1x168 1 893 1 793 Kendal 3 eMalahleni Oct 1988 to Dec 1992 6x686 4 116 3 840 Komati1, 2 Middelburg Mar 2009 to Oct 2013 4x100; 4x125; 1x90 990 904 Kriel Bethal May 1976 to Mar 1979 6x500 3 000 2 850 Lethabo Vereeniging Dec 1985 to Dec 1990 6x618 3 708 3 558 Majuba 3 Volksrust Apr 1996 to Apr 2001 3x657; 3x713 4 110 3 843 Matimba 3 Lephalale Dec 1987 to Oct 1991 6x665 3 990 3 690 Matla Bethal Sep 1979 to Jul 1983 6x600 3 600 3 450 Tutuka Standerton Jun 1985 to Jun 1990 6x609 3 654 3 510 Kusile3 Ogies Under construction 6x800 – – Medupi3 Lephalale Under construction 6x794 – – Nuclear (1) Koeberg Cape Town Jul 1984 to Nov 1985 2x970 1 940 1 860 Peaking stations Gas/liquid fuel turbine stations (4) 2 426 2 409 Acacia Cape Town May 1976 to Jul 1976 3x57 171 171 Ankerlig Atlantis Mar 2007 to Mar 2009 4x149.2; 5x148.3 1 338 1 327 Gourikwa Mossel Bay Jul 2007 to Nov 2008 5x149.2 746 740 Port Rex East London Sep 1976 to Oct 1976 3x57 171 171 Pumped storage schemes (2) 4 1 400 1 400 Drakensberg Bergville Jun 1981 to Apr 1982 4x250 1 000 1 000 Palmiet Grabouw Apr 1988 to May 1988 2x200 400 400 Ingula Ladysmith Under construction 4x333 – – Hydroelectric stations (2) 5 600 600 Gariep Norvalspont Sep 1971 to Mar 1976 4x90 360 360 Vanderkloof Petrusville Jan 1977 to Feb 1977 2x120 240 240 Wind energy (1) 6 Sere Vredenburg Mar 2015 46x2.2 100 100 Solar energy Concentrating solar power Upington Under construction 100 – – Other hydroelectric stations (4) 7 61 – Colley Wobbles Mbashe River 3x14 42 – First Falls Umtata River 2x3 6 – Ncora Ncora River 2x0.4; 1x1.3 2 – Second Falls Umtata River 2x5.5 11 – Total power station capacities (23) 44 281 42 090 Available nominal capacity 95.05% 1.  Former moth-balled power stations that have been returned to service. The original commissioning dates were: Komati was originally commissioned between Nov 1961 and Mar 1966. Camden was originally commissioned between Aug 1967 and Sep 1969. Grootvlei was originally commissioned between Jun 1969 and Nov 1977. 2. Due to technical constraints, some coal-fired units at these stations have been de-rated. 3. Dry-cooled unit specifications based on design back-pressure and ambient air temperature. 4. Pumped storage facilities are net users of electricity. Water is pumped during off-peak periods so that electricity can be generated during peak periods. 5. Use restricted to periods of peak demand, dependant on the availability of water in the Gariep and Vanderkloof dams. 6. The Klipheuwel demonstration wind farm (3MW) has been decommissioned. 7. Installed and operational, but not included for capacity management purposes. Integrated report | 31 March 2015 1 Statistical table 3 Power lines and substations in service at 31 March 2015 2014/15 2013/14 2012/13 2011/12 2010/11 Power lines Transmission power lines, km1 31 107 29 924 29 297 28 995 28 790 765kV 2 235 2 235 1 667 1 153 1 153 533kV DC (monopolar) 1 035 1 035 1 035 1 035 1 035 400kV 2 18 377 17 011 16 899 17 118 16 913 275kV 7 361 7 361 7 360 7 361 7 476 220kV 1 217 1 217 1 217 1 217 1 217 132kV 882 1 065 1 119 1 111 996 Distribution power lines, km 48 278 46 093 44 396 43 856 66 247 132 kV and higher 24 929 22 719 21 508 21 068 43 765 88 – 33kV 23 349 23 374 22 888 22 788 22 482 Reticulation power lines, km 22kV and lower 281 510 276 027 269 570 265 707 263 263 Underground cables, km 7 436 7 293 7 026 6 770 6 326 132kV and higher 65 65 65 50 49 33 – 88kV 361 364 212 217 179 22kV and lower 7 010 6 864 6 749 6 503 6 098 Total all power lines, km 368 331 359 337 350 289 345 328 364 626 Total transformer capacity, MVA 239 490 232 179 225 799 205 865 232 058 Transmission, MVA 3 139 610 138 350 135 840 132 955 130 005 Distribution and reticulation, MVA 99 880 93 829 89 959 72 910 102 053 Total transformers, number 335 242 329 314 320 501 315 397 351 297 Transmission, number 423 420 412 408 405 Distribution and reticulation, number 334 819 328 894 320 089 314 989 350 892 1. Transmission power line lengths are included as per distances from the Geographic Information System (GIS). 2. The Majuba Umfolozi No 1 765kV line, even though constructed at 765kV, is currently still being operated at 400kV and thus reflected under the 400kV total. 3. Base of definition: transformers rated ≥30 MVA and primary voltage ≥132 kV. Integrated report | 31 March 2015 1 Statistical table 4 Customer information 2014/15 2013/14 2012/13 2011/12 2010/11 Number of Eskom customers Local 5 477 591 5 232 904 5 013 435 4 852 712 4 653 740 Redistributors 804 801 795 786 784 Residential1 5 338 723 5 093 847 4 874 004 4 713 178 4 514 998 Commercial 50 613 50 425 50 399 50 270 49 090 Industrial 2 773 2 781 2 789 2 775 2 857 Mining 1 034 1 054 1 062 1 100 1 110 Agricultural 83 136 83 489 83 877 84 095 84 393 Rail 508 507 509 508 508 International 11 11 11 10 10 Utilities 7 7 7 7 7 End users across the border 4 4 4 3 3 5 477 602 5 232 915 5 013 446 4 852 722 4 653 750 Electricity sales per customer category, GWh Local 204 274 205 525 202 770 211 590 211 150 Municipalities 91 090 91 262 91 386 92 140 91 564 Residential1 11 586 11 017 10 390 10 522 10 539 Commercial 9 644 9 605 9 519 9 270 9 020 Industrial 53 467 54 658 51 675 58 632 59 611 Mining 29 988 30 667 31 611 32 617 32 630 Agricultural 5 401 5 191 5 193 5 139 4 919 Rail 3 098 3 125 2 996 3 270 2 867 International 12 000 12 469 13 791 13 195 13 296 Utilities 2 797 3 401 4 659 3 607 3 974 End users across the border 9 203 9 068 9 132 9 588 9 322 216 274 217 903 216 561 224 785 224 446 International sales to countries in southern Africa, GWh 12 000 12 469 13 791 13 195 13 296 Botswana 1 237 1 608 2 574 2 498 2 377 Lesotho 230 213 255 184 247 Mozambique 8 360 8 314 8 284 8 265 8 523 Namibia 924 1 248 1 822 1 507 1 559 Swaziland 882 741 598 596 564 Zambia 16 143 253 134 23 Zimbabwe 108 154 3 7 0 Short-term energy market 2 243 48 2 4 3 Electricity revenue per customer category, R million Local 140 074 129 688 114 307 103 863 82 119 Municipalities 60 051 55 371 49 891 44 251 34 408 Residential1 11 361 10 181 9 044 8 155 6 808 Commercial 8 599 7 940 6 972 5 925 4 563 Industrial 30 377 28 305 23 543 23 522 19 199 Mining 20 848 19 829 17 620 15 689 12 325 Agricultural 6 247 5 645 5 180 4 482 3 480 Rail 2 591 2 417 2 057 1 839 1 336 International 6 306 5 887 5 892 4 846 4 031 Utilities 2 988 2 837 3 149 2 404 1 927 End users across the border 3 318 3 050 2 743 2 442 2 104 Gross electricity revenue 146 380 135 575 120 199 108 709 86 150 Environmental levy included in revenue3 485 1 322 6 464 4 290 4 335 Less: Revenue capitalised 4 – (28) – – (110) Less: IAS 18 revenue reversal5 (597) – – – – Electricity revenue per note 32 in the annual financial statements 146 268 136 869 126 663 112 999 90 375 1. Prepayments and public lighting are included under residential. 2. The short-term energy market consists of all the utilities in the southern African countries that form part of the Southern African Power Pool. Energy is traded on a daily, weekly and monthly basis as there is no long-term bilateral contract. 3. The environmental levy of 2c/kWh tax was effective from 1 July 2009 to 31 March 2011. On 1 April 2011 the levy was raised to 2.5c/kWh and to 3.5c/kWh on 1 July 2012. The levy is payable for electricity produced from non-renewable sources (coal, nuclear and petroleum). The levy is raised on the total electricity production volumes and is recovered through sales. 4. Revenue from the sale of production while testing generating plant not yet commissioned, capitalised to plant. 5. The IAS 18 principle of only recognising revenue if it is deemed collectable at the date of sale, as opposed to recognising the revenue and then impairing the customer debt when conditions change, was applied in 2015. External revenue to the value of R597 million was thus not recognised at 31 March 2015. Integrated report | 31 March 2015 1 Statistical table 5 Environmental implications of using or saving electricity Factor 1 figures are calculated based on total electricity sales by Eskom, which is based on the total available for distribution (including purchases), after excluding losses through Transmission and Distribution (technical losses), losses through theft (non-technical losses), our own internal use and wheeling. Thus to calculate CO2 emissions: 223.4Mt – 216 274GWh = 1.03 tons per MWh. Factor 2 figures are calculated based on total electricity generated, which includes coal, nuclear, pumped storage, wind, hydro and gas turbines, but excludes the total consumed by Eskom. Thus for CO2 emissions: 223.4Mt – (226 300GWh – 4 114GWh) = 1.01 tons per MWh. Figures represent the 12-month period from 1 April 2014 to 31 March 2015 Factor 2 If electricity consumption is measured in: Factor 1 (total energy (total energy sold)1 generated)2 kWh MWh GWh TWh Coal use 0.55 0.54 kilogram ton thousand tons (kt) million tons (Mt) Water use1 1.45 1.41 litre kilolitre megalitre (M ℓ) thousand megalitres Ash produced 159 155 gram kilogram ton thousand tons (kt) Particulate emissions 0.38 0.37 gram kilogram ton thousand tons (kt) CO2 emissions2 1.03 1.01 kilogram ton thousand tons (kt) million tons (Mt) SO x emissions2 8.48 8.25 gram kilogram ton thousand tons (kt) NO x emissions3 4.33 4.22 gram kilogram ton thousand tons (kt) 1. Volume of water used at all Eskom power stations. 2. Calculated figures based on coal characteristics and power station design parameters. Sulphur dioxide and carbon dioxide emissions are based on coal analysis and using coal burnt tonnages. Figures include coal- fired and gas turbine power stations, as well as oil consumed during power station start-ups and, for carbon dioxide emissions, the underground coal gasification pilot plant. 3. NOx reported as NO2 is calculated using average station-specific emission factors, which have been measured intermittently between 1982 and 2006, and tonnages of coal burnt. Multiply electricity consumption or saving by the relevant factor in the table above to determine the environmental implication. Example 1: Water consumption Example 2: CO 2 emissions Using Factor 1 Using Factor 1 Used 90MWh of electricity Used 90MWh of electricity 90 x 1.45 = 130.5 90 x 1.03 = 92.7 Therefore 130.5 kilolitres of water used Therefore 92.7 tons CO 2 emitted Using Factor 2 Using Factor 2 Used 90MWh of electricity Used 90MWh of electricity 90 x 1.41 = 126.9 90 x 1.01 = 90.9 Therefore 126.9 kilolitres of water used Therefore 90.9 tons CO 2 emitted Further information can be obtained through the Eskom Environmental Helpline. Contact details are available on the inside back cover of the integrated report. For CDM-related Eskom grid emission factor information please go to the following link: http://www.eskom.co.za/OurCompany/SustainableDevelopment/Pages/CDM_Calculations.aspx or via the Eskom website: Our Company > Sustainable Development > CDM calculations. Integrated report | 31 March 2015 1 Eskom’s energy flow diagram The energy wheel shows the volume of electricity that flowed from local and international power stations and independent power producers (IPPs) to Eskom’s distribution and export points during the past two years, including the losses incurred in reaching those customers. All figures in GWh Generation of electricity 2014/15 2013/14 Available for distribution 2014/15 2013/14 Total imports 2014/15 2013/14 Generation 222 591 227 508 Generation (including IPPs) 232 322 234 800 International purchases 10 731 9 425 OCGT 3 709 3 621 International purchases 10 731 9 425 Wheeling1 3 623 3 353 IPPs 6 022 3 671 Wheeling1 3 623 3 353 Total 14 354 12 778 Subtotal 232 322 234 800 Subtotal 246 676 247 578 Pumping (4 114) (3 862) Pumping (4 114) (3 862) Total 228 208 230 938 Total 242 562 243 716 Total exports 2014/15 2013/14 International sales 2 12 000 12 469 Wheeling1 3 623 3 353 Southern African Power Pool Total 15 623 15 822 External sales 2014/15 2013/14 Local sales 204 274 205 434 International sales2 12 000 12 469 Internal use 2014/15 2013/14 Demand 2014/15 2013/14 Total 216 274 217 903 Internal use 791 465 External sales 216 274 217 903 Generated (53) (129) Technical and other losses 20 940 21 488 Internal use 791 465 Total 738 336 Technical and other losses 2014/15 2013/14 Generated (53) (129) Wheeling1 3 623 3 353 Distribution 14 920 (6.8%) 15 824 (7.1%) Unaccounted/rephasing 988 636 Transmission 6 020 (2.5%) 5 664 (2.3%) Total 242 562 243 716 Total 20 940 21 488 1. Wheeling is the buying and selling of electricity between Eskom and foreign parties without the power entering into South Africa. 2. International sales includes exports by Distribution International to Lesotho. The actual amounts for 2015 and 2014 were 89GWh and 91GWh respectively. Integrated report | 31 March 2015 1 Benchmarking information The following fact sheet details the benchmarking exercises undertaken by the Generation, Transmission and Distribution divisions. Generation Coal-fired power stations Generation benchmarks the performance of its coal-fired power stations • Our units are on a par with the VGB benchmark with respect to against those of the members of VGB (Vereinigung der Großkesselbesitzer planned maintenance in the median and low quartiles, while the PCLF e.V), a European-based technical association for electricity and heat of our best performing units was significantly better than that of the generation industries. VGB’s objective is to provide support and facilitate VGB benchmark units the improvement of operating safety, environmental compatibility and • Since 2012, Eskom’s UCLF performance showed a significant the availability and efficiency of power plants for electricity and heat deterioration compared to the VGB benchmark on all quartiles; this generation, either in operation or under construction. trend is continuing • With respect to the use of available plant (measured by energy When interpreting the results of the benchmarking study, it must be utilisation factor or EUF), all our coal-fired units are performing at noted that the operating regimes of other utilities contributing to the VGB a level close to, and in many cases above the VGB best quartile, an database may not be the same as those of Eskom. The results indicate that: indication that we are operating our power station units at much higher • The trend in the performance of our coal-fired plant across all indicators levels than the VGB benchmark units continues to be worse than the VGB benchmark • The availability of the top performing stations in the VGB benchmark has historically been consistent, but a decline was observed from 2012 through 2013, and the availability of the benchmark stations in the median and worst quartiles has also been declining 100 95 90 85 80 75 70 65 60 55 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Benchmarking EAF % – All coal sizes (excluding Eskom units) VGB worst quartile Eskom worst quartile VGB median Eskom median VGB best quartile Eskom best quartile 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Benchmarking UCLF % – All coal sizes (exluding Eskom units) VGB worst quartile Eskom worst quartile VGB median Eskom median VGB best quartile Eskom best quartile Integrated report | 31 March 2015 1 Benchmarking information continued 18 16 14 12 10 8 6 4 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Benchmarking PCLF % – All coal sizes (excluding Eskom units) VGB worst quartile Eskom worst quartile VGB median Eskom median VGB best quartile Eskom best quartile 95 85 75 65 55 45 35 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Benchmarking EUF % – All coal sizes (excluding Eskom units) VGB worst quartile Eskom worst quartile VGB median Eskom median VGB best quartile Eskom best quartile Integrated report | 31 March 2015 2 Benchmarking information continued Koeberg Nuclear Power Station We are affiliated to the World Association of Nuclear Operators Through INPO, we have maintained our accreditation from the National (WANO) and the Institute of Nuclear Power Operations (INPO), and Nuclear Training Academy in the United States for our systematic South Africa is a member of the International Atomic Energy Agency approach to the training of licensed and non-licensed nuclear operators (IAEA). These affiliations enable us to benchmark performance, conduct at Koeberg. We are the only non-US utility to receive such accreditation. periodic safety reviews, define standards, disseminate best practice and train personnel of our nuclear plant, Koeberg. For the review period, Koeberg’s performance has generally been better than median for the suite of WANO performance indicators (the complete A WANO peer review of Koeberg was carried out in July 2014, followed suite of WANO performance indicators is not shown here). by a WANO corporate peer review in February 2015. Following the Fukushima event in Japan in March 2011, corporate peer reviews are The graphs that follow depict the performance of Koeberg Nuclear Power additionally being carried out to determine the adequacy of corporate Station against all pressurised water reactor (PWR) units worldwide. support for nuclear power stations. 95 90 85 80 75 70 65 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UCF, % Koeberg mean Worldwide PWR worst quartile Worldwide PWR median Worldwide PWR best quartile 25 20 15 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UCLF, % Koeberg mean Worldwide PWR worst quartile Worldwide PWR median Worldwide PWR best quartile Integrated report | 31 March 2015 3 Benchmarking information continued 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Unplanned automatic scrams, UA7 rate per 7000 hours Koeberg mean Worldwide PWR worst quartile Worldwide PWR median Worldwide PWR best quartile 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12-month collective radiation exposure, man-Sieverts per unit Koeberg mean Worldwide PWR worst quartile Worldwide PWR median Worldwide PWR best quartile Integrated report | 31 March 2015 4 Benchmarking information continued 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 36-month collective radiation exposure, man-Sieverts per unit Koeberg mean Worldwide PWR worst quartile Worldwide PWR median Worldwide PWR best quartile The smoothing over a longer period than used in the benchmarks above takes into account the frequency of refuelling outages, of which three occur per two-year moving window. 100 95 90 85 80 75 70 65 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WANO index (formerly INPO index), % Koeberg mean WANO-AC worst quartile WANO-AC median WANO-AC best quartile Transmission Transmission took part in a benchmarking exercise with 27 other In 2012, the then Distribution and Customer Services Division participated international transmission companies in 2012/13. The study focused on in a benchmarking study which used North American utility data for maintenance and plant performance and identified international best benchmarking purposes. Distribution’s network interruption performance practices for the transmission industry. These studies have been used to is historically impacted by its long radial overhead lines for rural identify opportunities with the development of objectives and strategies electrification customers, with limited ring feeds in the event of supply for continuous improvement. interruptions, which limits the opportunity to build redundancy into the networks. In South Africa urban areas are largely supplied by municipalities, The results of the 2012/13 study indicated that Transmission’s substation who are in turn supplied in bulk by Eskom. and line asset performance was marginally below the benchmark average. Internal benchmarking performed this year has confirmed the previous The Distribution system average interruption duration index (SAIDI) and results. Benchmarking is conducted every second year; the next study is system average interruption frequency index (SAIFI) were categorised as scheduled for 2015/16 based on 2014/15 information. fourth quartile performance (quartile one being the higher performing utilities). Since the 2012 benchmark exercise Distribution has substantially Distrubution improved its SAIDI and SAIFI performance. As a result of financial constraints the business has not conducted an external benchmarking study during this financial year, but continues to Distribution is currently preparing to benchmark technical and operational reference data from a previous benchmarking study for planning purposes. performance against international utilities. Integrated report | 31 March 2015 5 Leadership activities: Board of Directors and committees This fact sheet supplements the information contained in the “Our governance and leadership” section of the integrated report. Governance of the group and the responsibility for driving good corporate citizenship is vested in a unitary board, which is supported by several Board committees and a Company Secretary. The Board, through its committees, provides the company’s strategic direction, while the Chief Executive, assisted by the Executive Management Committee (Exco) and its subcommittees, is accountable to the Board for implementing the strategy. P&G RBP SES ARC TC IFC P&G TC IFC P&G SES ARC IFC ARC P&G TC RBP SES TC ARC RBP SES IFC Dr Ben Ms Nazia Mr Zethembe Ms Venete Mr Romeo Ms Chwayita Dr Pat Ms Viroshini Mr Mark Ngubane (73) Carrim (34) Khoza (56) Klein (56) Kumalo (43) Mabude (45) Naidoo (55) Naidoo (42) Pamensky (42) Acting Chairman Independent Independent Independent Independent Independent Independent Independent Independent Independent non-executive non-executive non-executive non-executive non-executive non-executive non-executive non-executive non-executive Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Doctorate Technologiae LLM (University of National Technical CD(SA) Dip. Business B Compt (Unisa) Pr. Eng. ECSA, FSAIEE, B Proc (University of CA(SA) MB ChB (Durban Limpopo) Diploma Banker’s Exams Management (Wits SMIEEE, MIET, MCigre Durban-Westville) B Comm (Wits Medical School) LLB (University of Senior Executive (Institute of South University) Significant PhD Management of LLB (University of University) Johannesburg) Programmes (Harvard, African Bankers) Advanced Management directorships Technology (Da Vinci Durban-Westville) B Acc Sc Honours Significant Airports Company Institute for Technology Wits University) Senior Executive Programme (Harvard) MBA (Buckinghamshire (Unisa) directorships Significant South Africa Management) Enterprise Leadership Programme (Wits MBL (Unisa) Chilterns University Toyota South Africa directorships PBMR SOC Ltd MBA (Samford Significant for Executives Business School) MTS (INSEAD) of UK) Motors (Pty) Ltd None Mollo Holdings University, USA) directorships (University of Executive Programmes Brikor Ltd Significant Certificates in Electricity Significant Blue Label Telecoms Potchefstroom) (Harvard, INSEAD, Zululand Quarries directorships Regulation (GSB UCT), directorships Ltd IMD, MIT) (Pty) Ltd Significant Vodacom International Utility Management None directorships Significant (GUI, Samford None directorships University, USA) and Institute of Directors Competitive Electricity of Southern Africa Markets (LSB, UK) Old Mutual Wealth Significant (Pty) Ltd directorships Asara Engineering SA (Pty) Ltd (resigned March 2015) Tata Projects Ltd – Asara Engineering Joint Venture SA (Pty) Ltd (resigned March 2015) Pat Naidoo Consulting Engineers cc RSA (sole member) ARC ARC Audit and Risk Committee IFC Investment and Finance Committee P&G People and Governance Committee Refer to pages 18 to 19 under the “Our strategy” section of the integrated report for directors’ profiles    RBP Board Recovery and Build Programme Committee SES Social, Ethics and Sustainability Committee TC Board Tender Committee The acting Chief Executive and acting Chief Financial Officer are not members of the Board.    Ms Mariam Cassim and Mr Giovanni Leonardi were appointed to the Board on 25 May 2015. As a result of these appointments, the constitution of the Board subcommittees will be revised. The former Chief Executive, Mr Tshediso Matona, has resigned effective 31 May 2015. Denotes chairmanship of a committee Ages shown are as at 28 May 2015. Integrated report | 31 March 2015 1 Leadership activities continued Attendance of Board and commitee meetings The effectiveness of the Board is improved through the use of six Board committees to which it delegates authority without diluting its own accountability. The Board appoints members to committees, with due consideration of the necessary skills and experience required by members of the respective committees. Meetings of the Board and its committees are scheduled annually in advance. Special meetings are convened as and when required to address specific material issues. Meetings of the Board and its committees from 1 March 2014 to 11 December 2014 Audit Build Eskom Investment People Social, and Programme Emergency and and Ethics and Board Members Board Risk Review Task Team Finance Governance Sustainability Tender Total number of meetings 12 5 4 7 8 4 3 11 Independent non-executives Dr BL Fanaroff 9/12 5/5 4/4 Ms Q Gungubele 9/12 4/4 3/3 Ms N Lesela 9/12 3/4 * 11/11 Ms B Luthuli 9/12 * 5/5 4/4 5/11 Ms C Mabude 9/12 5/5 6/8 11/11 Ms Y Masithela 8/12 5/5 3/3 Mr MC Matjila 8/12 4/4 7/7 7/8 1/3 1/2 Dr B Mehlomakulu 8/12 5/7 * 3/3 10/11 Mr ME Mkwanazi 10/12 3/4 5/7 * 8/8 11/11 Mr SPQ Sedibe 11/12 * 4/4 3/3 Mr ZA Tsotsi * 11/12 * 4/4 4/7 4/4 2/3 Ms L Zondo 11/12 5/5 7/8 Executives Mr TJ Matona (Chief Executive from 1 October 2014) 3/3 1/1 1/1 Ms TBL Molefe (Finance Director) 11/12 3/4 5/7 7/8 7/11 Meetings of the Board and its committees from 11 December 2014 to 31 March 2015 Audit Build Eskom Investment People Social, and Programme Emergency and and Ethics and Board Members Board Risk Review Task Team Finance Governance Sustainability Tender Total number of meetings 8 2 2 1 5 1 1 3 Independent non-executives Mr NT Baloyi 7/8 1/2 4/5 1/1 Ms N Carrim 8/8 2/2 2/2 * 3/3 Mr ZW Khoza (acting Chief Executive from 12 March 2015) 7/8 1/1 4/5 1/1 2/3 Ms VJ Klein 7/8 4/5 * 1/1 * 1/1 Mr R Kumalo 8/8 2/2 0/1 Ms C Mabude 8/8 * 2/2 1/1 3/3 Ms DV Naidoo 8/8 2/2 1/2 1/1 Dr P Naidoo 8/8 * 2/2 1/1 3/3 1/1 3/3 Dr BS Ngubanester (acting Chairman from 31 March 2015) 8/8 1/2 0/1 1/1 3/3 Mr MV Pamensky 8/8 * 4/5 Mr ZA Tsotsi (to 30 March 2015) * 6/7 1/2 1/1 0/1 0/1 Executives Mr TJ Matona (Chief Executive to 11 March 2015) 2/2 0/1 1/1 1/1 Ms TBL Molefe (Finance Director to 11 March 2015) 2/2 0/1 1/1 0/2 * Denotes chairmanship of a committee Refer to pages 105 to 108 under the “Our leadership and governance” section of the integrated report for the activities of the Board and its committees Integrated report | 31 March 2015 2 Leadership activities: Executive Management Committee (Exco) Exco is a committee established by the Chief Executive and assists him in guiding the overall direction of the business and exercising executive control of day-to-day operations. Numerous changes to the Exco structure took place over the last financial year, as detailed in the integrated report. The composition of the Exco at the date of approval of this report is depicted below: IFC P&G RBP SES IFC RBP TC Mr Brian Molefe (49) Ms Nonkululeko Veleti (41) Mr Thava Govender (47) Mr Edwin Mabelane (53) Mr Abram Masango (46) Ms Ayanda Noah (48) Mr Mongezi Ntsokolo (54) Ms Elsie Pule (47) Acting Chief Executive Acting Chief Financial Officer Group Executive: Acting Group Executive: Acting Group Executive: Group Executive: Group Executive: Acting Group Executive: Transmission and Group Technology and Group Capital Distribution and Group Generation Human Resources Sustainability Commercial Customer Services Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications Qualifications B Com (Unisa) CA(SA) BSc Mechanical National Diploma in Pr. Eng. (ECSA) BSc Electrical Engineering BA Social Work BSc Chemistry and MBL (Unisa) B Com Acc (Wits Engineering (University of Mechanical Engineering BSc Electrical Engineering (Wits University) (University of the Biochemistry (University Postgraduate Diploma in University) KwaZulu-Natal) National Higher Diploma (University of Cape BBA Hons (University of North) of Durban-Westville) Economics (London Management Mechanical Engineering Town) Stellenbosch) BA (Hons) Psychology Significant BSc Honours Energy University School of Oriental Development Programme MBA (International MBA (University of (University of Pretoria) directorships Studies – Nuclear & Fossil Significant and African Studies) (Unisa) Management Centres) Stellenbosch) MSc Business None (RAU) directorships Executive Development Executive Development Engineering (Warwick Significant Management Development Significant ESDEF Programme (Wits Programme (City University) Programme (Unisa) directorships Emalahleni FM directorships University) University of New York) Lion of Africa Fund Managers Significant None Significant (Pty) Ltd directorships Significant Significant directorships Karibu Holdings (Pty) Ltd Roshcon SOC Ltd directorships directorships None Karibu Capital (Pty) Ltd Eskom Enterprises SOC Roshcon SOC Ltd Karibu Real Estate Ltd Investments (Pty) Ltd EAP (Chairman) SANEA CSIR ARC Audit and Risk Committee IFC Investment and Finance Committee P&G People and Governance Committee Refer to pages 40 to 41 under the “Operating performance” section of the integrated report for the Exco members’ profiles    RBP Board Recovery and Build Programme Committee SES Social, Ethics and Sustainability Committee TC Board Tender Committee The acting Chief Executive and acting Chief Financial Officer are not members of the Board, but serve on selected Board committees due to the nature    of their roles. The former Chief Executive, Mr Tshediso Matona, has resigned effective 31 May 2015. Ages shown are as at 28 May 2015. Integrated report | 31 March 2015 3 Leadership activities continued Attendance of Exco meetings Number of meetings Executive Divisional responsibility attended Total number of meetings 27 Mr MC Matjila Interim Chief Executive (interim appointment ended 30 September 2014) 8/9 Mr TJ Matona Chief Executive (from 1 October 2014) 9/14 Mr ZW Khoza Acting Chief Executive (from 12 March 2015) 4/5 Mr T Govender Group Executive: Generation (until 31 October 2014) Group Executive: Transmission and Group Customer Services (from 1 November 2014) 22/27 Ms EL Johnson Acting Group Executive: Group Customer Services (resigned effective 31 October 2014) 7/9 Mr MM Koko Group Executive: Group Technology and Commercial (from 1 May 2014 to 11 March 2015) 20/22 Mr K Lakmeeharan Acting Group Executive: Group Technology and Commercial (until 30 April 2014) 0 Dr SJ Lennon Group Executive: Sustainability (resigned effective 31 March 2015) 23/27 Mr E Mabelane Acting Group Executive: Group Technology and Commercial (from 12 March 2015) 5/5 Mr DL Marokane Group Executive: Group Capital (until 11 March 2015) 20/22 Mr A Masango Acting Group Executive: Group Capital (from 12 March 2015) 5/5 Ms TBL Molefe Finance Director (until 11 March 2015) 15/22 Ms A Noah Group Executive: Distribution 21/27 Mr MM Ntsokolo Group Executive: Transmission and acting Group Executive: Human Resources (until 1 November 2014) Group Executive: Generation (from 1 November 2014) 21/27 Ms E Pule Acting Group Executive: Human Resources (from 1 November 2014) 15/17 Ms N Veleti Acting Chief Financial Officer (from 12 March 2015) 4/5 Integrated report | 31 March 2015 4 Stakeholder matters This fact sheet supplements the “Stakeholder and material matters” section of the integrated report and represents the full list of material matters raised by stakeholders over the year. The table indicates which matters were raised by which stakeholders. The matters have been grouped according to the sustainability dimensions for ease of reference. Although the material matters have been numbered, this is merely to facilitate cross-referencing and does not indicate the level of importance of an item. For a discussion of the matters with higher stakeholder interest and with the highest impact on Eskom, refer to the material stakeholder matters matrix on page 24 of the integrated report Lenders, Government, Civil Organised analysts Parliament Suppliers Employees and society and business Media Matters raised by stakeholders and investors and regulators and contractors organised labour environmental and industry Customers and public Safety and security 1. Safety of the workplace, employees, contractors and the public a a a a a 2. Business continuity and disaster management a a a a a Financial sustainability 3. Going concern status and overall financial performance a a a a a a a 4. The impact of credit ratings downgrades on the ability to secure funding, and increasing finance charges a a a 5. Liquidity position, and the impact of: • The Government support package • Savings through the Business Productivity Programme a a a a a a a • Increasing arrear municipal debt and revenue collection • Increasing amounts spent on liquid fuels due to the extended use of OCGTs 6. Move to attaining cost-reflective prices , and the role of the NERSA MYPD and Regulatory Clearing Account processes a a a a a Operational sustainability 7. Technical performance of Generation plant, including the maintenance backlog and incidents at Duvha and Majuba Power Stations a a a a a 8. Technical performance of Distribution and Transmission plant a a a a 9. Security of supply, and the impact of: • International sales and purchases of electricity • Plant breakdowns a a a a a • Use of OCGTs • Limitations from emission licences 10. Coal stock procurement and handling at power stations a a a a a 11. Private-sector participation through the DoE renewable energy programme and other IPPs, and connection to the grid a a a a a a Revenue and customer sustainability 12. Impact of load shedding and load curtailment on customers , including: • Communication • Consistency of interruptions a a a a a • Reliability of schedules 13. Impact of increased tariffs on businesses and customers a a a a a a 14. Declining electricity sales volumes a a a a a 15. Impact of energy losses, theft of equipment and illegal connections on supply to customers a a a a 16. Customer dissatisfaction with quality of service delivery a a 17. Probability of a national blackout a a a a a 18. Arrear customer debt a a a a Integrated report | 31 March 2015 1 Stakeholder matters continued Lenders, Government, Civil Organised analysts Parliament Suppliers Employees and society and business Media Matters raised by stakeholders and investors and regulators and contractors organised labour environmental and industry Customers and public Sustainable asset creation 19. New capacity post Kusile in terms of the Integrated Resource Plan 2010-2030 a a a 20. Progress on installing new Generation capacity • Medupi and Kusile power station progress and synchronisation • Commissioning of Sere a a a a a a a • CSP project milestones and costs/funding 21. New build project delays and the escalating cost to completion , including the impact of: • Safety incidents (Ingula) • Contractor performance and strike action a a a a a a a • Shortage of critical skills Environmental sustainability 22. Reducing our carbon footprint by procuring renewable energy a a a a 23. Impact of carbon tax a a a a 24. Environmental concerns, such as contraventions, particulate emissions and water use a a a 25. Scarcity of water a a a 26. Environmental impact of nuclear power generation and nuclear waste management a a a a 27. Energy efficiency programmes and incentives a a a a a a Building a sustainable skills base 28. Shortage of skills and retention of skilled employees a a a a a a 29. Employee salaries and benefits a a a Transformation and social sustainability 30. Socio-economic contribution a a a a a a 31. Transformation of employment equity, procurement equity and supplier localisation and development a a a a 32. Electrification connection challenges a a a a a 33. Governance concerns around tender processes a a a a a Governance and leadership 34. Changes in and stability of leadership, including: • Executive resignations • Appointment of Collin Matjila as interim Chief Executive a a a a • Appointment of Tshediso Matona as Chief Executive • New board appointments, suspensions and resignations 35. Remuneration of directors and executives a a a a a Integrated report | 31 March 2015 2 King Code of Corporate Governance (King III) application register This fact sheet supplements the “Our leadership and governance” section of the integrated report and provides the breakdown of exceptions and alternative practices to the King III principles, as determined by the Governance Assessment Instrument of the Institute of Directors of Southern Africa (IoDSA). Disclaimer The assessment criteria of the web-based tool, the Governance Assessment Instrument (GAI) have been based on the practice recommendations of the King III report. These criteria are intended to assess quantitative aspects of corporate governance only and not qualitative governance. As such, the results are proposed to serve as an indication of the structures, systems and processes in place and are not intended to include an indication of the governance culture of an entity. The responsibility for the input of data in order to attain a result through the use of this [tool] is that of the user and the entity in respect of which the user subscription has been granted. The Global Platform for Intellectual Property (Pty) Ltd (TGPIP), nor the IoDSA, as Licensor of the content of the GAI, makes no warranty or representation as to the accuracy or completeness of either the assessment criteria or the results. Neither TGPIP, nor the IoDSA, nor any of its affiliates, nor the software developer shall be held responsible for any direct, indirect, special, consequential or other damage of any kind suffered or incurred, as a result of reliance on the results produced through the use of the GAI. Eskom Holdings SOC Ltd Registration number: 2002/015527/30 Main category Sub-category King III principle Our application Explanation Chapter 1: Ethical leadership The board ensures that ethical risks and opportunities are assessed (i.e. Partially applied The outcome of the Eskom Fraud Risk Assessment will enhance efforts to improve the assessment of ethical risks and Ethical leadership and identified and evaluated in terms of probability and impact) and that an ethics opportunities risk and opportunity profile is compiled. corporate citizenship Chapter 2: Board composition Non-executive directors* agree to all of the following in their letters of Partially applied The shareholder appoints the director and issues the letter of appointment. It does highlight the director’s duties but Boards and directors appointment: the code of ethics, board charter and insurance policy of the SOC, as well as the determination of remuneration, are • The directors’ code of conduct provided after the letter of appointment has been issued and the SOC has been informed of the appointment • The duties that are expected from each director • The remuneration for holding office as director • The terms of directors’ and officers’ liability insurance *It should be noted that the terms “director” “directors”, “member of the board” and “members of the board” are used interchangeably and convey the same meaning as those persons represented on the board.” Board composition Procedures for appointments to the board are all of the following: Partially applied Procedure for appointment of non-executive directors is determined by the shareholder through the Department of • Formally set out in a policy Public Enterprises (DPE) and implemented by the DPE. The transparency thereof can be improved. The procedure for • Transparent appointment of executive directors is determined by the shareholder and implemented by Eskom in accordance with its • A matter for the board as a whole, although the board may be assisted by recruitment policy the nomination committee or the Minister as applicable Board composition Non-executive directors that are classified as “independent” by the entity are Partially applied While an annual evaluation (which includes the assessment of independence) of the performance of the Board and subjected to an annual evaluation of their independence by the chairman and individual directors is usually undertaken in line with Eskom practice, such an evaluation could not be conducted for the the board. period under review due to the reconstitution of the Board Board composition The board ensures that inexperienced directors are developed through Not applied There is no formal mentorship programme in place but the balance of experienced and less experienced members on mentorship programmes. the Board assists in the informal transfer of skills. The intention is to formalise the process Board composition Before candidates are nominated for board appointments, there are Partially applied Non-executive directors are appointed by the shareholder. The vetting process can be improved. The recruitment procedures in place to investigate the candidates’ backgrounds or legal process for executive directors conducted by Eskom includes a background check exclusions from membership inspected and applied. Chairman The chairman’s ability to add value, and his or her performance against what Partially applied While an annual evaluation of the performance and effectiveness of the Board, individual directors and Board is expected of this role and function, is assessed every year. committees is usually undertaken in line with Eskom practice, such an evaluation could not be conducted for the period under review due to the reconstitution of the Board. The new Board will be evaluated over a longer period of 15 months in the next financial year Chairman There is succession planning in place for the chairman. Partially applied The Chairman is appointed by the shareholder. The shareholder considers the succession of the Chairman CEO The CEO is not a member of the remuneration committee. Partially applied Remuneration role is included in the People and Governance Committee. The Chief Executive is an ex-officio member of the People and Governance Committee but recuses himself when his remuneration is discussed or if there is an actual, perceived or potential conflict of interest Integrated report | 31 March 2015 1 King Code of Corporate Governance (King III) application register continued Main category Sub-category King III principle Our application Explanation Chapter 2: CEO The CEO is not a member of the nomination committee. Partially applied The nomination role is included in the People and Governance Committee. The Chief Executive is an ex-officio member Boards and directors of the People and Governance Committee but recuses himself if there is an actual, perceived or potential conflict of interest. He contributes to the nomination and appointment of senior executives (continued) Performance evaluation Yearly evaluation of the Board’s, its committees and individual directors is Partially applied While an annual evaluation of the performance of the Board, individual directors and Board committees is usually performed every year. undertaken in line with Eskom practice, such an evaluation could not be conducted for the period under review due to the reconstitution of the Board. The new Board will be evaluated over a longer period of 15 months in the next financial year Performance evaluation The results of performance evaluations are constructively used to identify Partially applied While an annual evaluation of the performance of the Board, individual directors and Board committees is usually training and development needs for directors. undertaken in line with Eskom practice, such an evaluation could not be conducted for the period under review due to the reconstitution of the Board Performance evaluation The nomination for re-appointment of a director only occurs after an Partially applied While an annual evaluation of the performance of the Board, individual directors and Board committees is usually evaluation of the performance of the director. undertaken in line with Eskom practice, such an evaluation could not be conducted for the period under review due to the reconstitution of the Board Performance evaluation Assessment of the performance of the CEO and other executive directors as Partially applied Due to the suspension of the Chief Executive and the Finance Director, performance assessments of these employees employees takes place every year and the results of this assessment affect have not been conducted for the period under review remuneration. Remuneration All members of the remuneration committee are non-executive directors and Not applied The Chief Executive is an ex-officio member of the People and Governance Committee which incorporates the committee a majority of the members are independent. remuneration element. He recuses himself if there is an actual, perceived or potential conflict of interest Nomination committee The nominations committee oversees a formal succession plan for the board, Partially applied The shareholder attends to succession planning for non-executive directors. The People and Governance Committee CEO and certain senior executive appointments. oversees succession planning for the Chief Executive and senior executives Nomination committee The nominations committee makes recommendations for appointment as Partially applied The Board makes recommendations to the shareholder on the skills gap. Knowledge, experience, integrity and capacity director based on all of the following: of potential directors is determined by the shareholder • Knowledge and experience gap on the board • Integrity of the candidate; and- skills and capacity of the candidate Nomination committee The nominations committee comprises the board chairman and non-executive Partially applied The People and Governance Committee includes the nomination role. The Chief Executive is an ex-officio member of directors. the People and Governance committee but he recuses himself if there is an actual, potential or perceived conflict of interest Nomination committee The nominations committee establishes procedures for appointments to the Partially applied Non-executive directors are appointed by the shareholder. The People and Governance committee ensures that there board and ensures that these are properly carried out. are procedures in place for the appointment of executive directors Nomination committee The nominations committee ensures that new directors have not been Partially applied Non-executive directors are vetted and appointed by the shareholder. The People and Governance Committee oversees declared delinquent or are not serving probation in terms of section 162 of the vetting of executive directors (including in terms of Section 162 of the Companies Act) the Companies Act, 2008. Nomination committee The nominations committee identifies and participates in selecting board Partially applied The shareholder identifies, selects and appoints non-executive directors. The People and Governance Committee assists members. with the identification and selection of executive directors Remuneration The shareholder passes a non-binding advisory vote on the entity’s Partially applied A remuneration policy for the Board is being developed in line with the DPE standards on remuneration. The remuneration policy every year or if not a company, it is approved by the shareholder approves the remuneration of the Board members at the AGM Minister. Remuneration Non-executive directors’ fees comprise both a base fee and an attendance fee Partially applied The shareholder’s remuneration and incentive standards are being revised to accommodate this. Eskom is in the process per meeting. of aligning its policy to these standards Integrated reporting The integrated report discloses all of the following: Partially applied While an annual evaluation of the performance and effectiveness of the Board, individual directors and Board and disclosure • An overview of the appraisal process of the board, board committees, committees is usually undertaken in line with Eskom practice, such an evaluation could not be conducted for the period individual directors; under review due to the reconstitution of the Board. The new Board will be evaluated over a longer period of • The results of this appraisal process; and 15 months and this will be disclosed in the next financial year • Action plans emanating from results of the appraisal Integrated reporting The remuneration report discloses both the nature and period of restraint Partially applied Restraint agreements are not applicable and disclosure provided for in executive service contracts. Integrated report | 31 March 2015 2 King Code of Corporate Governance (King III) application register continued Main category Sub-category King III principle Our application Explanation Chapter 3: Audit committee The audit committee does both of the following: Partially applied The finance function is reviewed through the process of internal and external audit. The suitability of the Finance Audit committees • Considers and satisfies itself of the suitability of the expertise and Director is reviewed by the Chief Executive and People and Governance Committee experience of the financial director every year • Reviews the finance function every year Audit committee The nominations committee presents the shareholder or the Board with Partially applied The Board recommends audit committee members to the shareholder for approval suitable candidates for election as audit committee members. Audit committee The nominations committee evaluates whether audit committee members Partially applied The Board assesses the qualification and experience of audit committee members collectively have the required level of qualifications and experience. Chapter 6: Compliance The risk of non-compliance is identified, assessed and responded to through Partially applied The identification and assessment of laws is done primarily through the compliance management process after which the Compliance with laws, the risk management processes. risks are logged, responded to and tracked through the general risk management process. In this regard integration is steadily being improved and control mechanisms updated to enhance the management of compliance risks and general rules, codes and compliance reporting standards Compliance The board receives assurance on the effectiveness of the internal controls Partially applied Resource constraints affect the ability to carry out routine monitoring and reviews and this impacts on the ability to intended to ensure compliance with laws, rules, codes and standards. provide more frequent assurance. Consolidated reports on compliance maturity and status are presented twice a year to the Audit and Risk Committee. The maturity of the compliance structures is improving and consequently the degree of assurance provided on the effectiveness of compliance controls is also steadily improving Compliance Management has established the appropriate structures to educate, train, Partially applied A set of formalised guiding documents has been implemented to guide the requirements associated with compliance communicate about, and measure compliance. management. Training employees on specific compliance requirements is not done on a systematic basis and is affected by resource constraints. Training on compliance methodology and key processes will be provided to the compliance community through a CISA-accredited programme – this is expected to be completed in 2015/16. High-level KPI measurement is currently being implemented Compliance The compliance function has adequate resources to fulfil its duties. Partially applied Resources are constrained and available capacity as well as competence needs to be augmented Chapter 8: Governing stakeholder The gap between stakeholders’ perceptions and the performance of the Partially applied A stakeholder relationship assessment tool was piloted in three provinces and it will be implemented country-wide Integrated reporting relationships company is measured and managed to enhance or protect the entity’s reputation. and disclosure Governing stakeholder The integrated report includes reasons for refusals of requests for Partially applied The nature and volume of PAIA requests and the percentage of refusals and their complexity prevents comprehensive relationships information that were lodged with the entity in terms of the Promotion of disclosure in the integrated report, and therefore the declaration in term of Section 32 of PAIA is included as a fact Access to Information Act, 2000. (Only applicable in the event of any such sheet refusals during the reporting period.) Integrated report | 31 March 2015 3 Compliance with Promotion of Access to Information Act, 2000 This fact sheet contains our declaration in terms of Section 32 of the Promotion of Access to Information Act, 2 of 2000 (PAIA) for 2014/15. The statistics required by South African Human Rights Commission are as follows: 2014/15 a. The number of requests for access received 46 b. The number of requests for access granted in full 21 c. The number of requests for access refused in full 11 d. The number of requests for access refused partially 5 e. The number of requests for access in process 4 f. The number of internal appeals lodged 6 g. The number of internal appeals in process 0 h. The number of cases in which access was given as a result of internal appeal 2 i. The number of internal appeals lodged on the grounds that a request was regarded as having been refused in terms of Section 27 0 j. The number of applications ending up in court 0 k. The number of cases in which extension of 30 days were requested 22 In addition to these formal requests, we also dealt with informal requests lodged via the PAIA Portal, not in terms of the Act. Our PAIA manual has been updated to the extent possible and is electronically available on http://www.eskom.co.za/OurCompany/PAIA/Pages/Promotion_Of_Access_To_Information.aspx Eddie Laubscher National Deputy Information Officer Integrated report | 31 March 2015 1