This is an overview of performance against the key performance indicators in Eskom’s shareholder compact1 with government, which is done at an Eskom company level. (See here for more detailed information on the shareholder compact.)

	Key performance area		Key performance indicator	Target   2011	Achieved   2011	Achieved    2010	Achieved   2009
	Provide adequate future electricity for South Africa		Generation capacity installed (Megawatts)	625	315RA	452RA	1 770RA
			Transmission lines installed (kilometres of line)	446	443RA	600RA	418RA
			Transmission MVA installed	3 565	5 940RA	1 630RA	1 255RA
	Ensuring reliability of supply of electricity to all South Africans		National load shedding (Generation Induced) or Un-served energy (system minutes)	No load   shedding	NoneRA	NoneRA	641,5
			DSM energy efficiency annualised (GWh)	994	1 339RA	n/a2	n/a2
	Ensuring business sustainability of Eskom		Cost of electricity – (rand/MWh) (before embedded derivatives and depreciation)	327.28	296.36RA	255.09RA	237.293
			Internal energy efficiency – annualised current year savings (GWh)	24.0	26.2RA	n/a4	n/a
			Water usage (L/kWh sent out)	1.35	1.35RA	1.34RA	1.35RA
			Debt:equity ratio (company)	2.5	1.67RA	1.69RA3	1.323
			Interest cover (company)	1.0	1.48RA	0.72RA3	(4.72)3
	Supporting the developmental objectives of South Africa		Percentage of local content in new-build projects	50.0%	79.7RA	73.9RA	n/a
			Skills development:
			Eskom trainees/bursars (learner pipeline)	4 500	5 283RA	5 255RA	5 907
			Engineering trainees/apprentices	3 500	4 240RA	3 780RA	3 535
			Additional number of non-Eskom learners on Eskom-sponsored learning	450	550RA	236RA	n/a

1.	The compact measures the performance of the electricity business.
2.	The basis of measurement changed for the current year. In prior years, verified savings of 372MWRA (2010) and 916MWRA (2009) were achieved.
3.	Restated
4.	Reporting basis has changed from 2010, therefore not comparable to 2011.
RA	– Reasonable Assurance provided by the independent assurance provider (Refer here).

 

Generation capacity

The 625MW target for capacity installation was not achieved due to ongoing challenges at Grootvlei unit 5 and Komati unit 4. At Grootvlei, there was a super-heater boiler tube leak. At Komati, the front end of the high-pressure rotor shaft sheared, due to an unexpected blow as a result of a turbine failure.

Transmission lines built

The target installation of 446km of transmission lines was missed by a small margin due to outstanding land and rights issues (outstanding approvals and permits); late access to land and unsuccessful land acquisition for servitudes due to landowner resistance; the unavailability of required outages and rain.

The divisional reports that follow contain a full analysis of Eskom’s performance during the year ended 31 March 2011, from a financial, operational, safety and environmental point of view.