Eskom demonstrates its commitment to its vision of “together building the powerbase for sustainable growth and development” through its core business focus of electricity generation, transmission, energy trading and distribution. It entrenches the values of excellence, innovation, customer satisfaction and integrity across all business operations.

Achieving the vision requires in-depth planning and implementation in a complex environment characterised by economic growth, greater demand for electricity and the increased need for significant infrastructure expansion, as well as competition for scarce materials (coal and equipment), funding, skills and supplier inputs. Challenges are compounded by the rising cost of primary energy and new components, restructuring of the electricity distribution industry, the need to continually improve our environmental performance and the growing involvement of stakeholder groups.

Six strategic objectives

Eskom has responded to the electricity challenge – the supply and demand imbalance – by identifying six strategic objectives that need to be achieved.

Securing continuity of supply – the recovery plan

A stabilisation and recovery plan is being implemented to respond to the critical electricity demand and supply imbalance. The plan is to balance the demand and supply by getting the country to work together to reduce demand and to optimise the performance of existing generation assets so as to increase the reserve margin.

Successfully executing the build programme

Eskom aims to deliver 4 644MW of new power station capacity by 2012/13. Successful delivery on the capacity expansion programme is at the core of Eskom’s vision and constitutes the most sustainable long-term solution to the current electricity challenge.

Responding to climate change

Eskom has implemented a climate change strategy and aims to reduce its relative CO2 footprint until 2025 and thereafter to continually reduce absolute emissions in support of national and global targets. Key to this is an aspiration of reducing demand through energy efficiency and having lower carbon-emitting technologies, such as clean coal, nuclear and renewables.

Maintaining financial sustainability

Significant capital expenditure on the build programme over the next 20 years will have a marked impact on Eskom’s financial position. Continued reliance on efficiency improvements, together with real price increases and shareholder support, will remain essential components of a sustainable solution for Eskom and the industry. A fine balance needs to be maintained between earning an appropriate return on assets to ensure a financially sustainable Eskom and keeping electricity prices as low as possible in the interests of contributing to sustainable economic growth and development in South Africa.

Restoring public confidence

The load shedding events in 2007 and 2008 and the expected capacity shortfalls for the next few years have had a severe impact on the public’s confidence in Eskom. As a result, a programme has been initiated to inform the South African public and Eskom employees about the electricity supply and demand challenge and the extent of the situation, while addressing misconceptions.

Successfully implementing EDI restructuring

Cabinet approved the proposal to create six regional electricity distributors (REDs) which will be established as public entities. The priority for the organisation will be the migration of the distribution business into the six REDs and ensuring fair value compensation for transferred assets.