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INTEGRATED RESULTS PRESENTATION
KING III APPLICATION
 
   



Becoming a high-performance organisation

Eskom has continued its focus on enhancing and improving its performance to ensure a major performance transformation into a utility focused on enhancing the quality of customer service, safer, more effective and efficient plant operation through prudent plant maintenance, optimising key talent and ensuring resilience measures are in place for major disruptive events. The business productivity programme will identify and eliminate inefficiencies in the business to enable Eskom to manage its costs and revenue

Eskom focuses on the following to become a high-performance organisation:

Safety
Improving operations
Being customer-centric
Building strong skills
Investing in appropriate technologies

Operating highlights

The lost-time incidence rate, including occupational diseases, has shown a significant improvement compared to the previous year and is within target
Koeberg Unit 2 achieved a record run of 484 days when it was shut down for a scheduled refuelling outage – this marks a continuous run from one refuelling outage to another
Both Distribution and Transmissions’ key technical indicators have shown good improvement compared to the previous year
A number of information technology projects and improvements were successfully completed during the year, including improvements in the online vending system that successfully went live on 22 July 2013

Operating challenges

The number of fatalities is still high and there is an increased exposure of employees and contractors to crime-related assault incidents
Eskom declared four power system emergencies on 19 November 2013, on 20 and 21 February 2014 as well as on 6 March 2014. Rotational load shedding was implemented for 14 hours on 6 March 2014 (refer to page 104 under “Keeping the lights on”)
Unit 3 at Duvha power station (575 MW) was taken out of service on 30 March 2014 due to an over-pressurisation incident – it will remain out of service for a prolonged period. The incident is under investigation
Eskom’s unplanned capability loss factor (UCLF), a measure of generating plant health, and the energy availability factor (EAF), which measures plant availability, deteriorated compared to the previous year and Eskom failed to meet its target
Equipment theft, vandalism and energy theft (illegal connections) as well as the related impact on plant performance and the cost of supplying electricity remains a challenge
Debt collection, especially from municipalities, is a challenge with arrear debt increasing significantly compared to the previous year. More than one percent of the 2013/14 electricity revenue is provided for as arrear debt

Future focus areas

Continuing to reinforce safety practices to achieve zero harm for Eskom’s employees and contractors, including more extensive and frequent public road safety campaigns and related initiatives
Achieving a predictable and sustainable generation performance within the Generation sustainability strategy over five years
Network strengthening to achieve grid code N–1 compliance, as well as the integration of new generation sources
Continued focus on distribution sustainability through prioritised interventions towards refurbishment, reliability improvements and addressing maintenance backlogs
Implementing processes in terms of the revenue management strategy to enhance energy protection and energy loss programmes, and improve debt collection
Exploring alternative funding mechanisms for the existing learner pipeline and collaboration with other institutions

Moving coal transport from road trucks to rail has been a key focus area in terms of road safety and cost considerations
Moving coal transport from road trucks to rail has been a key focus area in terms of road safety and cost considerations