Shareholder compact

The government of the Republic of South Africa is Eskom’s sole shareholder. The shareholder representative is the Minister of Public Enterprises. Each year, Eskom, in consultation with the Minister of Public Enterprises, agrees on its performance objectives, measures and indicators in line with the Public Finance Management Act (PFMA).

Below is an overview of performance against the key performance indicators in Eskom’s shareholder compact with the government. The compact is reported at an Eskom company level.

  Key performance areas Key performance indicator   Unit   Target
year to
Mar 2014
  *   Actual half
year to
Sep 2013
 
  Focusing on safety Employee lost-time incident rate   Index   0.36   Tick   0.34  
  Keeping the lights on Maintenance backlog reduction based on Eskom Technical Governance committee approval1   Number   0   Tick   1  
    IDM demand savings   MW   379   Tick   117  
    Internal energy efficiency   GWh   15   Tick   0  
  Being customer centric Customer service index   Index   88.7     86.9  
  Improving operations Normal unplanned capability
loss factor (UCLF)
  %   ≤ 10     11.53  
    Less: Constrained UCLF2   %   n/a     3.45  
              Underlying UCLF3   %   10     8.08  
    EAF   %   80     78.42  
    SAIDI   Hours   45   Tick   37.28  
    Total system minutes lost for
events <1 minutes
  Minutes   3.4   Tick   1.58  
  Delivering capital expansion Generation capacity installed
and commissioned
  MW   100   Tick   120  
    Transmission lines installed   Km   770   Tick   511.1  
    Transmission capacity installed
and commissioned
  MVA   3 790   Tick   290  
    Generation new build capacity
milestones (Medupi, Kusile
and Ingula)
  Days
deviation
  30   Tick   5.75  
  Reducing environmental footprint Relative particulate emissions   Kg/MWh
sent out
  0.36   Tick   0.31  
    Specific water consumption4   L/kWh
sent out
  1.39   Tick   1.33  
  Implementing coal haulage and
the road-to-rail migration plan
Coal road-to-rail migration   Mt   11.5   Tick   5.4  
  Ensuring financial sustainability Cost of electricity (excluding
depreciation)
  R/MWh   453.4     500.27  
    Interest cover   Ratio   1.18     2.27  
    Debt/equity (including long-term provisions)   Ratio   2.17     1.84  
    FFO as % of total debt   %   9.11     8.68  
  Building strong skills (total pipeline or new enrolments) Training spend as % of gross
employee benefit costs
  %   ±5   Tick   7.48  
  Engineer learners   Number   2 007   Tick   2 269  
  Technician learners   Number   780   Tick   822  
    Artisan learners   Number   2 619     2 518  
    Strategic youth development
programme
  Number   5 000   Tick   5 100  
  Maximising Eskom’s
socio-economic contribution
Local sourcing in procurement5   %   52   Tick   62.4  
  Procurement from B-BBEE compliant   %   75   Tick   87.6  
  Procurement from black youth owned   %   1   Tick   1.0  
    Employment equity – disability   %   3     2.6  
    Racial equity in senior management, % of black employees   %   61   Tick   59.5  
    Gender equity in senior management, % of female   %   30   Tick   28.6  
    Racial equity in professionals and middle management, % of black employees   %   71   Tick   70.5  
    Gender equity in professionals and middle management, % of female employees   %   36   Tick   35.5  
* Forecasted performance to target as at 31 March 2014. Green Tick: indicates target will be achieved and red : indicates that the target is at risk and will be aggressively managed until year-end.
1 Refer to page 38 for the maintenance backlog reduction strategy, where the extent of the maintenance backlog is explained.
2 Constrained UCLF – this is UCLF that results from emissions and short-term related UCLF due to system constraints to meet the ‘Keep the Lights On’ objective. This is apportioned between the planned capability loss factor (PCLF) and the other capability loss factor (OCLF), which is the energy lost because of unplanned shutdowns.
3 Underlying UCLF – the difference between normal and constrained UCLF and which is still within Eskom’s control.
4 The specific water performance excludes Komati power station.
5 Measures the local sourcing from the capital expansion projects.

An unsafe electricity connection is fixed in Cosmos, Johannesburg
An unsafe electricity connection is fixed in Cosmos,
Johannesburg

 

Business overview PAGE PAGE Performance on strategic objectives