System Status Briefing Jan Oberholzer Bheki Nxumalo Chief Operating Officer Group Executive: Generation 21 May 2020 Contents 1 Overview 2 Performance Review February 2020 to May 2020 3 Progress with existing 9-Point Recovery Plan 4 Generation Optimized Capacity Plan Winter Outlook (FY2021) 5 Conclusion 2 Overview and summary of Eskom system performance • The impact of COVID-19, and especially the lockdown, have reduced demand by an average of 6 000 MW up to a maximum of 11 000 MW • This has created the opportunity to execute additional short term maintenance to address emergent issues, including those that are contributing to partial load losses (PLLs) • Planned maintenance has roughly doubled to more than 9 000 MW on occasion • This also had significantly reduced the need for OCGT usage • In the first 28 days of April, R 22.2m was spent on OCGT fuel, with a load factor of 0.34% • In FY20, R 2.67bn was saved on OCGT fuel vs. the provision of R 6.98bn • On the other hand, the lockdown and COVID-19 related restrictions have meant that some reliability outages have had to be delayed • In particular, Koeberg unit 2 was placed in cold reserve in April in order to delay the start of its next refueling outage to: • Allow the unit to be available when most needed – in the months after lockdown (June or July) • Improve the certainty for required international resources (specialists and spares) to arrive • Eskom has plans in place to gradually ramp up its power stations in line with government’s risk adjusted COVID-19 strategy 3 Impact of COVID-19 Lockdown 4 4 Overview of Transmission, Distribution, Koeberg and New Build performance Division Performance Status • Sustained high levels of maintenance • Performance negatively impacted by a number of abnormal events at large Transmission load centers due to high voltage plant failures as well as operating incidents: ‒ 2 Major Incidents occurred in Q4 taking the YE total to 3, against the annual limit of 2 • Ongoing theft and vandalism incidents impacted operations • 163 073 customers connected as part of the Universal Access Programme, well over the target of 157 900 Distribution • There is an increase in non-technical energy losses. Deterioration due to illegal connections, tampering with meters and culture of non-payment • Technical Performance continues to remain steady with a SAIDI Act of 36.88 vs a Target of 38hrs and a SAIFI Act of 14.44 vs a target of 19.6 Interruptions • Koeberg continues to operate safely as confirmed by oversight bodies. Nuclear Safety Review Board of nuclear experts instituted (additional oversight) Koeberg • Unit 1 trip 10 March, RTS 14 March. Unit 2 in Cold Reserve due to low demand • Koeberg 20-year life extension studies in progress and on track. The first 2 of 6 Steam Generators ready to be shipped to South Africa 5 Update on design defects for New Build projects Station Defect status • Unit 3 reaches full 793 MW capacity after 75-day outage for boiler plant modifications to design defects • Unit 6 undergoing similar modifications, to be followed by Unit 1 during May 2020 Medupi • Units 4 and 2 to be taken off grid July 2020 and August 2020 • Unit 5 to go on 75-day outage November 2020 • Unit 1 optimisation in progress, Commercial Operation forecast in Q4 of FY2021 • Boiler plant modifications to start Q1 2021 • Construction suspended on Kusile Units 4 to 6 due to COVID-19 lockdown Kusile • Kusile Unit 2 and 3 on load and supporting the grid while commissioning is in progress • These units (2 & 3) are forecast for Commercial Operation in Q2 of FY2021 • Design defects: Ingula units rerated from 245 MW to full design capability of Ingula 333 MW in February 2020 6 Quick wins targeted and achieved during lockdown • Maintenance increased from 3 600 MW, prior to national lockdown, to 9 800 MW in the second week of April 2020 • 6 776 MW capacity currently being maintained against a pre- lockdown plan that averaged 4 200 MW • Partial load losses target reduction from 4 615 MW to 2 638 MW, an improvement of 1 977 MW in available capacity • Due to the above, the resulting base case scenario after lockdown shows an improvement from an envisaged 31 days of Stage 1 loadshedding to 3 days during the winter period (P80) • It is important to recognise that due to the unreliability and unpredictability of the system, the risk of loadshedding remains • This will be the reality until after the 18 months of reliability maintenance to August 2021 7 Contents 1 Overview 2 Performance Review February 2020 to May 2020 3 Progress with existing 9-Point Recovery Plan 4 Generation Optimized Capacity Plan Winter Outlook (FY2021) 5 Conclusion 8 While the FY20 YTD performance is following seasonal trends, the unplanned losses are higher than targeted, but reducing Key insights • EAF improved slightly in March 2020, with a small reduction in UCLF • During the year, a delicate balance was required in giving the plants an opportunity for planned maintenance and the having the plants available to support the system • The national lockdown has allowed space for extra maintenance, which is being optimized • PCLF so far in April, at 17%, is roughly double that of previous months 9 Partial load losses, full load losses, slips and major incidents have been the biggest contributors to the unplanned losses UCLF (MW) for FY2021 April YTD from major contributors Other FLLs Major events 3345 791 7601 2646 337 387 96 1241 1404 FLLs Other Trips UAGS Trips BTLs Outage Slip PLLs Total UCLF Key insights • Partial Load Losses (PLLs) continues to be the biggest contributor to UCLF for FY2021 YTD • The lower demand, since the COVID-19 lockdown, has enabled Eskom to execute additional short-term outages, mainly focusing on emergent issues to address PLLs • This will enable the generation fleet to be in a better situation once the demand picks up as lockdown restrictions are incrementally lifted • In April 2020, PLLs have so far reduced from the FY20 annual average of 10.6% (4 651 MW) to 7.7% (3 345 MW) • Although some of this improvement is due to units in cold reserve, there have been gains due to the increase in planned maintenance to address PLLs • Major events were attributed to the following three units: Tutuka Units 1 and 3, and Kendal Unit 5 10 Camden Ash Dam Risk and Kendal Emissions Camden Ash Dam Risk • During April 2020 we took a decision to shut Camden down in response to an assessment we had undertaken on the status of the ash dam • Generation had been tracking the status of the ash dam for several months – and reduced Camden output as ashing limitations increased. • Camden is not expected to return to operation until after the winter. • Critical maintenance undertaken while stations is shut • All technical principles to safeguard and preserve units applied • Review of other ash dams underway 11 Emissions poor performance has been mainly due to Kendal power station Stream Progress to date We have done the following: 8 - Unit 1 – 14 day outage focusing ESP and DHP repairs, ESP Washing. The unit is currently compliant, correlation tests also completed (Feb 2020) - Unit 2 – 14 day outage focusing ESP and DHP repairs, ESP Washing. The Reduce unit is currently compliant. Correlation tests also completed (Jan 2020) Emissions - Unit 3 – 22 day outage focusing ESP and DHP repairs, ESP Washing (April 2020), the unit currently being optimized after outage, to be completed end May 2020 Currently doing the following: - Unit 5 is on long duration outage for ESP field replacement and DHP repairs, return to service date is April 2021 - Unit 6 – 22 day outage focusing ESP and DHP repairs, the Unit RTS date is end May 2020 – correlation tests to be done - EPRI is currently reviewing our 100mg/Nm³ action plans (Phase 1) The following is on the plan: - Initiated forensic investigations into emissions reporting - Unit 4 – 22 day outage to be executed for ESP and DHP repairs and unit optimised - EPRI is supporting to develop 50mg/Nm³ action plans (Phase 2) 12 Contents 1 Overview 2 Performance Review February 2020 to May 2020 3 Progress with existing 9-Point Recovery Plan 4 Generation Optimized Capacity Plan Winter Outlook (FY2021) 5 Conclusion 13 The plan covers load losses, coal stock, people issues and preparation for adverse circumstances and is aligned to the Maintenance Recovery project 1 New plant 2 6 Full load losses and Human Capital trips 3 7 Units on long-term Prepare for increased forced outages OCGT usage 4 8 Partial losses and Reduce emissions Boiler tube leaks 5 9 Outage duration and Coal Management slips 11 14 Since inception, we have made progress (1/6) Stream Status in November 2018 Progress to date 1 • Steercom between Eskom and • Ingula dual load rejection defect MHPSA has been established resolved, units at full load • Design defects at Kusile and Medupi • Technical solutions have been agreed have been identified between Eskom and MHPSA for the boiler defects at Medupi and Kusile New plant • The technical solutions were implemented on Medupi Unit 3 during the 75 day shutdown • Medupi unit 6 is currently shutdown while Medupi units 2, 4 & 5 and Kusile unit 3 are to implement similar technical solutions in FY21 2 • The trip performance remains a • FY20 trip performance was 593 challenge. Top 4 contributing power compared to a target of 560 stations (Duvha, Kriel, Majuba, • Tutuka was the largest contributor Tutuka) to develop and implement a to trips and showed the biggest trip reduction strategy customised for improvement by March ’20 Unit trips their sites to address performance • The implementation plans for the gaps . Top 4 Power Stations have been assessed & in execution with KPIs to monitor progress, trip investigation support and improvements to unit testing • Focus extending to New Build and Matla 15 16 Since inception, we have made progress (2/6) Stream 3 Units on long-term forced outages Assessment phase Progress in line with plan Progress at risk Returned Description Status/progress Lethabo • High Pressure steam pipe failure on 10 October 2018 Unit 5 • The High Pressure pipework completed , busying with extensive Returned (600MW) commissioning Duvha • On 23 August 2017, turbine tripped on generator stator Unit 4 earth fault – returned on 06 Nov 2018 but was shut down Returned (600MW) again to address a Generator H2 leak Grootvlei • Auxiliary steam range pipe burst on 26 January 2018 Unit 2 Returned • Also experienced generator issues (200 MW) • Initial delay due to funding constraints Kriel Unit 2 • Stator earth fault on 03 May 2018 Returned (600MW) Matla • Cold reheat non return valve leak experienced on 05 February Returned Unit 5 2019 (575MW) Duvha • Generator Stator fault on 17 Jul 2019 Returned Unit 1 • Stator rewind completed, busy with commissioning activities (600MW) Duvha Unit 3 • Outcome of legal action pending finalisation To be confirmed (600MW) Kendal Unit 5 • Emission plant refurbishment outage that will include a major RTS April 2021 (640MW) General Overhaul 16 17 Since inception, we have made progress (3/6) Stream Status in November 2018 Progress to date • Major PLL improvements projects with long 4 • Year to Date partials were supply lead times close to finalisation for cooling 4 215 MW towers and feedwater heaters Partial losses • Boiler tube failure reviews in • The Boiler Tube Leak Reduction Program (PLLs) and Boiler progress in progress reviews have been completed for all stations tube leaks • Potential reduction of > 2 000 MW from short - term opportunity maintenance into the winter period, with a further 2 000 MW opportunity from the outage plan post winter to the end of FY21 5 • Engineers identified to be • Outages are currently a key focus for the redeployed to power stations ERI performance improvement. The Outage • Developed plan to focus on steering committee was set up to look into ERI performance – enabling the area of improvement. contracts, skills, spares and • Rotek has entered into partnership quality management & agreements with multinational OEMs and Outage Maintenance Recovery international companies to support with duration and outage execution and technical support on slips the turbine centreline • Maintenance recovery will focus on specific priority FY2021 philosophy outages with Upfront Outage Execution enabling contracts in place, improved scoping planning readiness quality and execution oversight. . 17 18 Since inception, we have made progress (4/6) Stream Status in November 2018 Progress to date 6 • Identified critical vacancies • 1384 of the 1 852 critical positions and skills gaps at power identified were filled by April 2020 station management, • All the Power Station General operations and maintenance Managers and Tier 1 Manager areas positions have been filled Human Capital • 204 of Eskom qualified Learner Plant Operators have been appointed to date. • Engineering resources have been deployed to power stations to build technical capacity and experience. 7 • Tank levels for diesel were low • Actual spend for the 2020 financial year with constrained supply and was R 4.3bn against a provision of excessive usage R 6.98bn with actual average load Optimise factor of 6.28% OCGT usage • Finance developed plan to secure supply of • Average tank levels are currently above diesel 95% • Contracts for supply and storage finalised with focus in FY21 to optimise diesel usage from 7% load factor to about 5% 18 19 Since inception, we have made progress (5/6) Stream Status in November 2018 Progress to date • Focus on 10 of the 87 generation units 8 • Eskom delays to where emissions are high - a potential implementing emission risk of 6 633 MW retrofit projects within • Contracts have been placed for Lethabo committed timelines could and Tutuka High Frequency Power lead to medium term risk of Supply (HFPS) and Tutuka dual Reduce 9 000 MW Emissions conditioning pilot plant • Non-compliance with • In process of tender evaluation for Atmospheric Emission License Tutuka low NOx burners, Fabric filter limits could lead to a short plant for 3 units and Kendal HFPS term risk of 6 633 MW • Internal approvals obtained for Lethabo and Kriel SO3 and ESP’s • Performance for the past two years has been poor at 0.48kg/MWh sent out, this is mainly due to Kendal’s poor performance. • February and March 2020 showed promising improvement at 0.33kg/MWh sent out, this trend is expected to continue with improvement at Kendal Continuous engagement with Department of Environment, Forestry and Fisheries (DEFF) 19 Since inception, we have made progress (6/6) 9 Stream: Fix coal stockpiles Status in November 2018 Progress to date • 10 stations below Grid Code Requirement • No power station below the Grid Code Challenge requirement or below the Eskom • 5 of the 10 stations below 10 days prescribed minimum level • Arnot, Tutuka, Majuba, Matla, Kriel, • Significant improvements with the Stations Camden, Duvha stock days recovery were achieved. impacted All Power Stations are at their Eskom prescribed Expected Levels • Actual stock days 22 days • > 55 days as at middle May 2020 Stock pile levels • The plan is to manage the Total *Excl. Medupi & Kusile System average stock to not less than 37 days • In the light of the COVID-19 pandemic, mines, transporters and other suppliers in the Risks coal supply value chain are operational. Should the suppliers' employees be infected, supply from the respective mines would be at risk, however the risk is being managed • Good progress regarding initiatives to reduce coal quality related OCLF was made over the latter part of FY20. High levels of load losses started reducing from December . Kriel and Coal Quality Matla combined accounted for 75% of total coal related OCLF which will remain the focus of the team. The FY20 coal related OCLF was 0.75% 20 Maintenance Recovery project aims to improve EAF, drive midlife refurbishment and reliability maintenance 1 Achieve EAF targets of 70% in FY2021, 72% in FY2022 and 74% in FY2023 2 Achieve saving targets in line with the financial sustainability targets 3 Clear out all midlife refurbishment and reset reliability maintenance Ensure a sustainable recovery by focusing on drivers which include 4 health indicators, maintenance and operations excellence 21 Update on current activities for April and May 2020 (1/2) Activity Status update Reliability - Terms of Reference approved in the April 2020 Steering Committee Maintenance - Eleven Power Station Implementation Committees approved in April 2020 Steering Committee Recovery Steering Committee - Implementation Committee’s kick-off in May 2020 after TOR approval at RMRSC (RMRSC) - All eleven Power Stations in scope visited – including the RMDC Power station visits - No delay in progress during the “LOCKDOWN” period Project Office’s - Cluster and Power Station General Managers approval obtained Roll Out (Eleven - Risk review to be conducted in May 2020 at all Power Stations Power Stations) - Outage schedule updated weekly in line with lockdown Reliability Maintenance - The outage scope will be locked down for twelve months to execute the outages Schedule - Risk review in progress to address possible mitigation factors Original Equipment - Contracts concluded in May/June 2020 Manufacturers - Contractors on site D-Day 01 July 2020 (OEM’s) Reliability - Arnot, Duvha, Kendal, Kriel, Kusile, Lethabo, Majuba, Matimba, Matla, Medupi and Tutuka Maintenance Scope (Power Stations) 22 Update on current activities for April and May 2020 (2/2) Activity Status update HR Appointment - Human Resources manages this process as a project to be completed in July 2020 Progress Project - Group Technology and Group Capital resources to be identified first for possible placements Offices - Re-grouping the PMO Structure to support Project Offices at each Power Station - External FTC’s to be awarded a maximum of 15 specialized resources for 3 years - Take over all outage scopes to be executed as per locked down plan for twelve months D-Day 1 July 2020 - Do risk review to determine the loadshedding impact for 3 months D-Day – 30 on 01 - All resource allocations for project structure to have identified names June 2020 - All risk reviews to be completed and to start final preparation for Day 1 - All Implementation Committees at Power Stations to be active bi-weekly - Communication plan being drafted to address day one of recovery Programme Communication Plan - Organized Labour communication to be approved in May 2020 Steering Committee - External communication plan to be approved in April 2020 Steering Committee 23 Force Majeure - Background • Force majeure notice declared in April 2020 following the low electricity demand during national lockdown • Force majeure triggered by the following: o Significant reduction in electricity demand as a result of the national lockdown, compelling Eskom to reduce its power generation. o High energy users and/or key customers operations being put on care and maintenance during the national lockdown period o Stockyard levels at some Power Stations have reached maximum capacity. The design limit of the coal stockpiles capacity as per licenses can not be exceeded. • Eskom declared the force majeure after the extent of the electricity demand reduction was experienced and coal burn for April 2020 was revised down by 2 Mt, i.e. reduced from planned 9.2 Mt to 7.2 Mt. • Industry start up in May 2020 post the lock down expected to be slow, hence expectation that lower coal demand will continue through May 2020. • The force majeure is effective from 16 April 2020 to 31 May 2020. 24 25 Force Majeure - Conclusion • No coal offtake has been suspended yet • Force Majeure declaration meant to protect Eskom when unable to offtake coal due to current events outside Eskom’s control • Eskom manages the entire coal supply system on a daily basis to reduce impact of low electricity demand and reduced coal burn, e.g. by diverting coal to alternative stations, where possible • Coal stockpiles as at 15 May 2020: > 55 days vs Eskom prescribed minimum of 37 days • No risk of non-payment to suppliers for coal received during the Force Majeure period. • With economic activity expected to contract post the COVID-19 lockdown and the impact of the pandemic expected to last for a while, Eskom foresees lower electricity sales and concomitant reduction in coal burn. • Eskom engaging suppliers to cut back deliveries due to stockpiles being full and low demand 25 Contents 1 Overview 2 Performance Review February 2020 to May 2020 3 Progress with existing 9-Point Recovery Plan 4 Generation Optimized Capacity Plan Winter Outlook (FY2021) 5 Conclusion 26 Generation Reliability Lockdown Maintenance Plan (March to August 2020) Of the 31 unit outages totaling 14 270 MW that is in the maintenance plan from March to August 2020, 10 were shifted while 4 were brought forward to respond to the lockdown. Generating Unit, # Generating units, MW 1 931 3 5 Completed Completed Executing 2 889 Executing 9 450 Scheduled Scheduled 23 A further 13 short-term outages were undertaken during the reduced load during lockdown. Generating Unit, # Generating Unit, MW 3 1 550 Completed Completed Executing Executing 5 471 10 27 Partial Load Loss benefits realised from ongoing short term maintenance during lockdown Build-up of UCLF for FY2019 YTD Key insights Percentage(%) • 3 planned maintenance and 13 short term maintenance outages were scheduled since the start of lockdown 396 • These 16 outages had a cumulative opportunity of 1 977 MW partial load losses to be cleared of which 1 688 MW PLL Reduction (assessed in the first week of May) Executing have been realised from completed and returned units PLL Reduction 1581 1688 Completed • Remaining units likely to ensure that the full target of 1 977 MW will be achieved and possibly exceeded. Targeted PLL Reduction Actual PLL Reduction 28 29 Capacity Outlook December 2019 to March 2021 – Before Lockdown Sum of Available Capacity Sum of Gas units Sum of Operating Reserves Sum of PCLF Sum of UCLF Original Sum of Installed Capacity Sum of Peak Demand 50000 45000 Summer UCLF Winter UCLF Summer UCLF UCLF 12000 MW 10000MW 10000 MW 40000 35000 PCLF Operating reserve 30000 Gas 25000 Available capacity 20000 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2019 2020 2021 29 20000 25000 30000 35000 45000 50000 40000 2019 Dec 1-Dec 2019 Dec 10-Dec 2019 Dec 19-Dec UCLF 2019 Dec 28-Dec Average Dec & Jan 14000 MW 2020 Jan 6-Jan 2020 Jan 15-Jan 12000 MW 2020 Jan 24-Jan Summer UCLF Feb 2020 Feb 2-Feb UCLF Average 11900 MW 2020 Feb 11-Feb 2020 Feb 20-Feb 2020 Feb 29-Feb Sum of PCLF Mar 2020 Mar 9-Mar UCLF Average 12000 MW 2020 Mar 18-Mar 2020 Mar 27-Mar 2020 Apr 5-Apr Sum of Available Capacity Apr 2020 Apr 14-Apr UCLF Average 9600 MW 2020 Apr 23-Apr 2020 May 2-May 2020 May 11-May 2020 May 20-May 2020 May 29-May Sum of UCLF 2020 Jun 7-Jun 2020 Jun 16-Jun 2020 Jun 25-Jun 2020 Jul 4-Jul Operating reserve 2020 Jul 13-Jul Sum of MW Improvement . 2020 Jul 22-Jul Capacity Outlook 2020 Jul 31-Jul 2020 Aug 9-Aug 2020 Aug 18-Aug PCLF Available capacity UCLF 2020 Aug 27-Aug 2020 Sep 5-Sep 2020 Sep 14-Sep Sum of Gas units 2020 Sep 23-Sep Gas 2020 Oct 2-Oct 2020 Oct 11-Oct Sum of Installed Capacity ~7 000MW 2020 Oct 20-Oct Winter UCLF 2020 Oct 29-Oct 2020 Nov 7-Nov 2020 Nov 16-Nov 2020 Nov 25-Nov 2020 Dec 4-Dec December 2019 to March 2021 – After Lockdown 2020 Dec 13-Dec 2020 Dec 22-Dec 2020’ at 10000 MW considerate of the higher risk of PLL over summer months 2020 Dec 31-Dec Sum of Peak Demand 2021 Jan 9-Jan PLL MW (no risk) 2021 Jan 18-Jan Sum of Operating Reserves 2021 Jan 27-Jan 2021 Feb 5-Feb 2021 Feb 14-Feb 2021 Feb 23-Feb 2021 Mar 4-Mar 2021 Mar 13-Mar 2021 Mar 22-Mar *The planned ‘Summer 2019’ UCLF was projected as12000 MW, ‘Winter 2020’ is projected at 10 000 MW and the ‘Summer 2021 Mar 31-Mar 30 Winter 2020 System Status Outlook Winter peak UCLF range <11 000 MW • Days of Stage 1 loadshedding: 3 Note on economic impact of load shedding in winter – due to winter profile: Stage 1 & 2 load shedding, if required in winter • Days of Stage 2 has a lesser impact on the economy than in System Outlook loadshedding: 0 summer, because: (P80) • It is likely to only be required over evening peak (usually 17:00 to 20:00). • Days of Stage 3 • Load shedding schedules are staggered * – loadshedding: 0 therefore customers are not affected on consecutive days. • Average monthly • Large industrial customers are not called on diesel usage: to curtail demand in Winter under Stages 1&2 –  R 334 m only from Stage 3* (*) In terms of the rules in the Regulatory Code for Emergency Demand Reduction (NRS 048-9 Ed 2). 31 Next Steps • The focus on increasing short-term maintenance, especially to address partial load losses, during the lockdown will improve Eskom’s ability to meet the gradually increasing demand as the lock down restrictions are incrementally lifted • Approximately 2 000 MW of partial load losses will be recovered in time for the Winter Peak demand • Some reliability maintenance has had to be deferred due to lockdown restrictions and these will have to be incorporated into the capacity plan in future months • Due to the uncertainty in the rate at which lockdown restrictions will be lifted and thus the increase in demand, Eskom is evaluating various scenarios and plans are in place to ensure flexibility in our ability to “ramp up” as required • 6 776 MW of capacity being maintained in addition to pre-lockdown plan by short term maintenance intervention • Partial load losses (PLL’s) to be reduced from 7 858 MW to 4 434 MW until March 2021, an improvement of 3 424 MW in available capacity • Commitments signed by power station managers, generation cluster managers and GE (GX) • Although the base case scenario (P80) after lockdown maintenance results in an improvement from 31 days of Stage 1 load shedding to a possible 3 days – it is important to recognise that due to the current unreliability and unpredictability of the system, the risk for load shedding remains  This will be the reality until after the 18 months of reliability maintenance 32 Contents 1 Overview 2 Performance Review February 2020 to May 2020 3 Progress with existing 9-Point Recovery Plan 4 Generation Optimized Capacity Plan Winter Outlook (FY2021) 5 Conclusion 33 Conclusion • Eskom is committed to recovering its operational performance and will not compromise on reliability maintenance and mid-life refurbishment Summary of Eskom system performance • This is in order to ensure South Africa has a reliable and sustainable generation plant fleet going forward • There will be heightened focus on sustained transmission and distribution network performance in order to manage other potential threats to the reliability of electricity supply • Eskom commits to keeping South Africa informed early in the event that loadshedding is necessary – a detailed schedule is being developed and will be synchronised with the national calendar • While we don’t expect to implement loadshedding this winter, the risk of loadshedding does remain • We appeal to customers to continue to use electricity sparingly, particularly over the peak hours of 17:00 - 20:00 to avoid or limit the probability of loadshedding 34 Help us manage demand and avoid loadshedding 35 Thank you