Eskom Holdings Limited (Eskom) engaged KPMG Services (Pty) Limited to provide independent assurance over selected key sustainability performance information presented in the “business and sustainability performance review” section of the 2007/08 annual report (the report).

This report is made solely to Eskom in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Eskom those matters we have been engaged to state in this report and for no other purpose. We do not accept or assume responsibility to anyone other than Eskom, for our work, for this report, or for the conclusions we have reached.

The objective of our independent assurance engagement and the applicable levels of assurance expressed regarding the selected 2007/08 business and sustainability performance information are detailed in the unqualified and qualified conclusion paragraphs here.

The internally developed Eskom reporting standards, which are available on request from Eskom, and the Global Reporting Initiative G3 guidelines, were used as criteria for the assurance over the selected business and sustainability performance information.

Our engagement relates only to the selected 2007/08 business and sustainability performance information in the report and does not extend to any prior year performance information and disclosures or assertions relating to future performance plans/ strategies in the report or on the Eskom website. Further any reference to other external audits of business and sustainabilityrelated policies, standards and procedures contained in the report has no bearing on KPMG’s independent assurance engagement.

Responsibilities of directors

The directors of Eskom are responsible for the preparation and presentation of the report and the information and assertions contained within it, for determining the group’s objectives in respect of the business and sustainability performance, including the identification of stakeholders and material issues, and for establishing and maintaining appropriate performance management and internal control systems from which the reported business and sustainability performance information is derived.

Responsibility of the independent assurance provider

Our responsibility is to express our conclusions to Eskom based on our work performed. We conducted our work in accordance with the International Standard on Assurance Engagements 3000: Assurance Engagements other than Audits or Reviews of Historical Information. This standard requires, inter alia, that the assurance provider complies with the appropriate requirements of the International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants such that their independence is not compromised and the assurance team members collectively possesses the necessary professional competencies.

Summary of work performed

Our procedures were designed to gather sufficient appropriate evidence to provide reasonable and/or limited assurance on the selected 2007/08 business and sustainability performance information included in the scope of our engagement. Our procedures depend on our judgement, including our assessment of the risk of material misstatements of the information included in the scope of our engagement and our assessment of the internal controls relevant to the company’s preparation and presentation of the selected 2007/08 business and sustainability performance information in the report.

• interviews with management and senior executives at corporate and management at site level to assess the application of the GRI G3 principles and to obtain an understanding of the general control environment
• testing of process and systems and review of documentation in place at corporate, head office and at site to generate, collate, aggregate, monitor and report the business and sustainability performance indicators for the year
• visits to four sites including Koeberg (nuclear power station), Arnot (coal-fired power station), Duvha (coal-fired power station) and the Southern distribution region
• desk top reviews including analytical reviews of other material sites

We believe that the evidence obtained from our work performed provides an appropriate basis for our conclusions. Where limited assurance is expressed, less assurance is obtained from our procedures than in a reasonable assurance engagement.

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