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INTEGRATED RESULTS PRESENTATION
KING III APPLICATION
 
   



Appendix E: Abbreviations, acronyms and glossary

Abbreviations and acronyms
B-BBEE     Broad-based black economic empowerment
BPP     Business productivity programme
DoE     Department of Energy
DPE     Department of Public Enterprises
EAF     Energy availability factor (see glossary)
EBITDA     Earnings before interest, taxation, depreciation and amortisation
EUF     Energy unavailability factor
GW     Gigawatt
GWh     Gigawatt hour (1 000MWh)
IIRC     International Integrated Reporting Council
IPP     Independent power producer (see glossary)
IRP 2010     Integrated Resource Plan 2010
King III     The third King Commission: Code of Corporate Governance
kt     Kiloton (1 000 tons)
kV     Kilovolt
kWh     Kilowatt hour (see glossary)
ML     Megalitre (1 million litres)
mSv     Millisievert
Mt     Million tons
MVA     Mega volt ampere
MW     Megawatt (1 million watts)
MWh     Megawatt-hour (1 000kWh)
MYPD     Multi-year price determination
NERSA     National Energy Regulator of South Africa
OCGT     Open-cycle gas turbines
OHSAS     Occupational health and safety standards
PCLF     Planned capability loss factor
PPPFA     Preferential Procurement Policy Framework Act
RCA     Regulatory clearing account
RTS     Return-to-service power stations
SAIDI     System average interruption duration index
SAIFI     System average interruption frequency index
UCLF     Unplanned capability loss factor (see glossary)
Glossary
49M     The 49M initiative aims to inspire and rally all South Africans behind a common goal – save electricity and create a better economic, social and environmental future for all
Back2Basics programme     An efficiency programme that focuses on getting the basics right by simplifying, standardising and optimising our processes, systems and data, together with comprehensive process documentation
Base-load plant     Largely coal-fired and nuclear power stations, designed to operate continuously
Daily peak     Maximum amount of energy demanded in one day by consumers
Decommission     To remove a facility (eg reactor) from service and store it safely
Debt: equity including long-term provisions     Net financial assets and liabilities plus non-current retirement benefit obligations and non-current provisions divided by total equity
Debt service cover ratio     Cash generated from operations/(net interest paid plus debt repaid excluding repayments on commercial paper)
Demand-side management     Planning, implementing and monitoring activities to encourage consumers to use electricity more efficiently, including both the timing and level of demand
Electricity revenue per kWh     Electricity revenue including environmental levy/kWh sales total
Electricity operating costs per kWh     Electricity related costs: (Primary energy costs, net transfer pricing, employee benefit cost, depreciation and amortisation plus impairment loss and other operating expenses)/external sales in kWh
Embedded derivative     Financial instrument that causes cash flows that would otherwise be required by modifying a contract according to a specified variable such as currency
Energy availability factor (EAF)     Measure of power-station availability, taking account of energy losses not under the control of plant management and internal non-engineering constraints
Energy efficiency     Programmes to reduce energy used by specific end-use devices and systems, typically without affecting services provided
Forced outage     Shutdown of a generating unit, transmission line or other facility for emergency reasons or a condition in which generating equipment is unavailable for load due to unanticipated breakdown
Free basic electricity     Amount of electricity deemed sufficient to provide basic electricity services to a poor household (50kWh/month)
Free funds from operations     Cash generated from operations adjusted for working capital (excluding provisions) and net interest paid/received and non-current assets held for risk management
Free funds from operations as a percentage of gross debt     Free funds from operations/gross debt multiplied by 100
Gigawatt     One thousand megawatts
Gross debt     Debt securities issued, borrowings, finance lease liabilities and financial trading liabilities plus the after tax effect of: retirement benefit obligations and provisions for power station-related environmental restoration and mine-related closures
Gross debt/EBITDA     Gross debt/earnings before interest, taxation, depreciation and amortisation
Independent non-executive director     Someone who is:
Not a full-time salaried employee of the company or its subsidiary
Not a shareholder representative
Has not been employed by the company and is not a member of the immediate family of an individual who is, or has been in any of the past three financial years, employed by the company in any executive capacity
Not a professional advisor to the company
Not a significant supplier or customer
International financial reporting standards     Global accounting standards issued by the International Accounting Standards Board that require transparent and comparable information
Independent power producer (IPP)     Any entity, other than Eskom, that owns or operates, in whole or in part, one or more independent power-generation facilities
Interest cover     Operating profit before net finance cost/(net finance cost but before unwinding of discount on provisions, change in discount rate and borrowing cost capitalised)
Kilowatt-hour (kWh)     Basic unit of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit steadily for one hour (one kilowatt-hour is 1 000 watt hours)
Load     Amount of electric power delivered or required at any specific point on a system
Load management     Activities to influence the level and shape of demand for electricity so that demand conforms to the present supply situation, long-term objectives and constraints
Load shedding     Scheduled and controlled power cuts that rotate available capacity between all customers when demand is greater than supply to avoid blackouts
Lost-time injury (LTI)     A work injury, including any occupational disease/illness or fatality, which arises out of and in the course of employment and which renders the injured employee or contractor unable to perform his/her regular/normal work on one or more full calendar days or shifts other than the day or shift on which the injury occurred
Lost-time incidence rate (LTIR)     Proportional representation of the occurrence of lost-time injuries over 12 months per 200 000 working hours
Maximum demand     Highest demand of load within a specified period
Megawatt     One million watts
Megawatt-hour (MWh)     One thousand kilowatt-hours or 1 million watt-hours
Open-cycle gas turbines (OCGT)     Liquid fuel turbine power stations that form part of peak-load plant and run on kerosene and diesel. Designed to operate in periods of peak demand
Outage     Period in which a generating unit, transmission line, or other facility is out of service
Off-peak     Period of relatively low system demand
Peak demand     Maximum power used in a given period, traditionally between 07:00-10:00 and 18:00-21:00
Peaking capacity     Generating equipment normally operated only during hours of highest daily, weekly or seasonal loads
Peak-load plant     Gas turbines, hydroelectric or a pumped-storage scheme used during peak-load periods
Primary energy     Energy in natural resources (eg coal, liquid fuels, sunlight, wind, uranium)
Pumped-storage scheme     A lower and an upper reservoir with a power station/pumping plant between the two. During off-peak periods the reversible pump/turbines use electricity to pump water from the lower to the upper reservoir. During peak demand, water runs back into the lower reservoir through the turbines, generating electricity
Reserve margin     Difference between net system capability and the system’s maximum load requirements (peak load or peak demand)
Return on average equity     Profit/loss for the year after tax/average total equity
Return on average total assets     Profit/loss for the year after tax/average total assets
System minutes     Global benchmark for measuring the severity of interruptions to customers. One system minute is equivalent to the loss of the entire system for one minute at annual peak. A major incident is an interruption with a severity ≥1 system minute
Technical losses     Naturally occurring losses that depend on the power systems used
Unit capability factor (UCF)     Measure of power station availability indicating how well plant is operated and maintained
Unplanned capability loss factor (UCLF)     All occasions when a power station unit has to be taken out of service. Energy losses due to outages are considered unplanned if they are not scheduled at least four weeks in advance
Used nuclear fuel     Nuclear fuel irradiated in, and permanently removed, from a nuclear reactor. Used nuclear fuel is stored on-site in used fuel pools or storage casks
Working capital ratio     (Total current assets less financial instruments with group companies less investments in securities less embedded derivative assets less derivatives held for risk management less financial trading assets less cash and cash equivalents)/(Total current liabilities less financial instruments with group companies less debt securities issued less borrowings less embedded derivative liabilities less derivatives held for risk management less financial trading liabilities)
Watt     The watt is the International System of Units’ (SI) standard unit of power. It specifies the rate at which electrical energy is dissipated– energy per unit time

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