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INTRODUCTION

EXECUTIVE SUMMARY
Eskom was established in South Africa in 1923 as the electricity supply commission. In July 2002, it was converted into a public limited liability company, wholly owned by government. Eskom is one of the top 20 utilities in the world by generation capacity (net maximum self-generated capacity: 41 194 mw). Eskom generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa. Eskom directly provides electricity to about 45% of all end-users in South Africa there other 55% is resold by distributors (including municipalities). Power station and major power lines are being built to meet South Africans rising demand for electricity. In 2005 Eskom embarked on a capacity expansion programmed. The largest in its history, which will increase it generation capacity by 17 120 mw and its transmission by 4 700 km. the capacity expansion programme aims to meet both increasing demand and diversify Eskom’s energy sources. In the 6 years ended 31 march 2011, the programme has cost R140 billion (including capitalized interest). The total cost of the programme to completion in 2018 is estimated to be R340 billion excluding capital interest

ESKOM’S SALES OBJECTIVES

Eskom’s overall impact on South Africa is significant. Electricity has been a driver of our country’s development over the past century and will continue to be a key enabler for economic growth and job creation. As a state-owned company that impacts the lives of South Africans on a daily basis, Eskom has a great responsibility towards our society, our economy and our environment. Believing that transparency is important and by removing the veil to reveal Eskom’s impacts and contributions, Eskom delivers on one important element of this responsibility. The Eskom factor is intended to be a thorough assessment of Eskom’s impact during the 2011 financial year on the economy, our society and the environment, not only in a direct sense but also through our immediate suppliers and business partners.

To build on the insights gained through the assessment and further improve the level of detail, Eskom seeks to engage actively with our many stakeholders. The objective of publishing this information on the web is to create an opportunity for open dialogue on Eskom’s footprint and to generate further insights on how to accelerate and further increase our positive impact on the country. Such a study could be revisited periodically in order to gain insight on how Eskom’s footprint has changed and where new actions should be targeted. In this way, the results from the Eskom factor report can be used as input to its internal strategy review process. Depending on the stakeholder feedback received, Eskom will review the benefits of a future Eskom factor report