Scope of report
The annual report for 1 April 2007 to 31 March 2008 is an integrated
sustainability report as Eskom aligns itself with international
sustainability best reporting practices, including the Global Reporting
Initiative (GRI) Sustainability Reporting Guidelines.
The report considers economic, environmental, social and
technical performance. Additional
sustainability information is disclosed in the internet report. When
this is the case, the availability of extra web-based information is
signalled in the printed report.
Nature of business, major products and services
Eskom generates, transmits and distributes electricity to industrial,
mining, commercial, agricultural and residential customers and
redistributors. Additional power stations and major power lines are
being built to meet rising electricity demand in South Africa. Since
the programme started in 2005, additional capacity of 2 582MW
has been commissioned. The approved capacity expansion budget is
R343 billion (in nominal terms) up to 2013.
Eskom buys electricity from and sells electricity to the countries
of the Southern African Development Community (SADC). The
future involvement in markets outside South Africa (that is SADC,
African countries connected to the South African grid and the rest
of Africa) is limited to those projects that have a direct impact on
ensuring security of supply for South Africa.
Eskom is regulated under licences granted by the National Energy
Regulator of South Africa (Nersa), originally under the Electricity
Act (41 of 1987) – to be replaced by licences under the Electricity
Regulation Act (4 of 2006) – and by the National Nuclear Regulator
in terms of the National Nuclear Regulatory Act (47 of 1999).
The Eskom Enterprises (Pty) Limited group focuses mainly on
activities that support its holding company and is also responsible
for all non-core businesses. It supports Eskom by providing plant
life-cycle support and plant maintenance, including return-toservice
work, and supports the build programme for all the
line divisions. It is also in the process of disposing of a number
of non-core businesses, including its investment in arivia.kom. At
the end of the past financial year, Eskom Enterprises disposed of
Mountain Kingdom Communications (Pty) Limited (MKC), the
telecommunications provider in Lesotho.
The core businesses of subsidiaries, Eskom Finance Company (Pty)
Limited, Escap Limited and Gallium Insurance Company Limited
include the granting of employee home loans and the management
and insurance of business risk. R1,95 billion (82%) of the mortgage book of Eskom Finance Company has been securitised,
(2007: R1,6 billion representing 68%). The planned
disposal of this company is expected to be finalised in the
2009 financial year. Eskom’s corporate social investment is
channelled principally through the Eskom Development
Foundation, a section 21 company.
Countries in which operations are located
Eskom’s head office is in Johannesburg and its operations
are focused on South Africa.
The Eskom Enterprises group operates electricity
generation concessions in Mali, Zambia and Uganda.
Other than South Africa, Eskom Enterprises also has
subsidiaries in various African countries, with offices in
Uganda, Mali, Zambia and, up until the disposal of MKC,
Regional sales breakdown
The majority of sales are in South Africa. Other countries
of southern Africa account for a small percentage of
sales. (Refer to note 5.)