CONFIDENTIAL

Eskom overview and Eskom Business In North West Province

Table of Contents

1. Eskom overview

3. Electrification program

4. Capital investment

6. Eskom Challenges

2. North West Key Customers

5. Procurement opportunities

Eskom overview

3

Operational performance

Eskom operates 29 power stations, with a total

nominal capacity of 44 134MW.

Our power system has progressed to a position of

surplus capacity which will positively impact the

economy of Bokone Bophirima.

We now have a healthy and adequate reserve

margin (19%) and adequate generation capacity

to meet the current demand.

Eskom can meet any increase in demand until

2021 due to operational surplus capacity which

currently averages 5 500 MW at peak.

Eskom overview (continue)

4

Last time Eskom load shed was 8 August

2015.

Eskom has finished 26 months without

experiencing load shedding.

Eskom can meet any increase in demand

until 2021 due to operational surplus

capacity which currently averages 5 500

MW at peak.

All four Ingula units were commissioned adding an installed capacity of 1 332MW

o Medupi Unit 5 became commercially operational on 3 April 2017, adding an additional 794MW installed capacity.

With an installed capacity of 794 MW, Unit 5 joined its sister unit, Unit 6, which has been contributing to the balancing of electricity supply and demand since 23 August 2015.

Medupi Unit 4 was synchronised on 31 May 2017, also ahead of the P80 schedule (Jan 18).

Commercial operation of Medupi is expected before the end of the financial year.

Eskom overview: The New build programme

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Eskom’s Key Customers In North West

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The economy of the North West Province is dominated by the

platinum mining sector, followed by finance, services and trade.

Electricity is an enabler for the mining industry as 10% -28% of

the mine operating cost depend on the operation.

The Key Accounts North West contributes 9% of the total

Eskom National Sales.

Eskom’s contracted demand for North West Key Accounts is

3215 MVA.

We have planned to sell a total of 16 449,84 GWh for the

financial year 2016/17.

Our Quarter 2 Sales are sitting at 9620.70 GWh.

North West Universal Access Program

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District

municipality

2014/15 2015/16 2016/17 2017/18 2018/19

Actual Actual Actual Planned Actual Planned

Bojanala Platinum 7 231 5 463 10 357 4 973 3 011 8 767

Ngaka Modiri

Molema

8 081 5 120 5 056 4 832 2 713 5 036

Dr. Ruth

Segomotsi

Mompati

4 526 3 549 4 831 2 251 2 764 4 071

Dr. Kenneth

Kaunda

1 777 697 144 544 677 1 126

Total 23 889 14 829 20 388 12 600 9 165 19 000

Progress on current Electrification program

Total number of houses connected between 1 April and 30 October are 9,165.

Electrification Program to be completed in December 2017 before Christmas for

beneficiaries.

Electrification per District Municipalities

No Connections Planned Connections

Completed YTD

Current Program 12 366 8 577

Bojanala 4 787 2 816

Ngaka Modiri Molema 4 832 2 510

Dr. Ruth Segomotsi

Mompati 2 203 2 574

Dr. Kenneth Kaunda 544 677

Roll Over Projects 234 234

Bojanala Platinum 186 186

Dr. Ruth Segomotsi

Mompati 48 48

Grand Total 12 600 8 811

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ELECTRIFICATION HIGHLIGHTS FOR 2017/18

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Project Name District Municipality Local

Municipality

Reported

Connections

Ipelegeng Ext 8 Dr. Ruth Segomotsi Mompati Mamusa 1,130

Bloemhof Ext 10 Dr. Kenneth Kaunda LekwaTeemane 503

Hani View Block K & I Bojanala Platinum Moretele 273

Majakaneng (Various Sections) Ngaka Modiri Molema Ramotshere Moiloa 264

Tshwene's Farm Bojanala Platinum Moretele 234

Ntsweletsoku Palamakua Ngaka Modiri Molema Ramotshere Moiloa 122

Setlagole Ext Phase 3 Ngaka Modiri Molema Ratlou 111

Ikageng Dr. Ruth Segomotsi Mompati Kagisano Molopo 108

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Legend

Existing HV/MV substations to be upgraded

DPA/CRA new substation/line projects

400kV Line

88kV Line

275kV Line

132kV Line

Zeerust Munic

Vryburg

New Main Transmission Substation

Ngwedi

Klerksdorp

Distribution Infrastructure Expansion Plan up to 2019

Schweizer-Reneke

Delareyville

Ottosdal

Edwardsdam

Mokalaka

Ganyesa

Lykso

Havelock

Kalput

Phahameng

Kaalput

Magopela

Pitsong

Vessel

Heiningvlei

Norlim

Reivilo

Pering

Mookodi

Vaalkop Pumps

Lethabong

Boschkopie

Silverkraans

Bophirima

Styldrift

Straatsdrift

Marico minerals

Gopane Mine

Mahikeng east

Mafikeng Main

Mmabatho main

Unit 13

Montshiwa

Lothlakane

Moruleng

Impofu Bakubung

Kgetleng river

Swartruggens

Mimosa

Lehurutshe

Zeerust Chrome

Ongin

Madibeng

Ruighoek

Ledig

Manyane

Mogwase

DRA new substation/line projects

Tlhabolongang Coligny

Sunrise

PLANNED SCOPE NEED

HV Line Length (km) 1825

New Substation (No.) 21

Upgrade Substation (No.) 46

No. of Transformers 88

Installed Capacity (MVA) 9070

DoE funded HV (MVA) 60

Sephaku

Mmabatho Bulk

FY 2018 Core Projects

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Name of Projects Benefits

Bophirima & Vryburg Munic

Substations

To increase electricity capacity in the Vryburg area to

benefit industries and households.

Mafikeng Switching Stations

Refurbishment

To reduce customer impact due to equipment failures.

Rustenburg Industries To also reduce customer impact due to equipment

failures.

Ledig Substation To increase electricity capacity and strengthen the

Ledig area to benefit businesses and communities.

Madibeng substation Increase electricity capacity in Brits area for the

benefit of household and industry.

Lethabong Substation Increase electricity capacity for the benefit of

household and industry.

Zeerust Substation Increase electricity capacity for the benefit of household and

industry.

Eskom Company – Commercial KPIs

North West Province Procurement spend performance

FY18

Targets YTD - Oct 2017

Total Measurable Procurement Spend

B-BBEE attributable spend

BWO attributable spend

BO attributable spend

BYO attributable spend

BPwD attributable spend

QSE attributable spend

EME attributable spend

n/a

80%

12%

40%

2%

1%

15%

15%

R339 241 696

R501 769 183

R60 430 802

R721 824

R161 025 415

R183 561 138

n/a

59.78%

0.09%

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Spend to Non-Compliant suppliers n/a R154 902 482 18.45%

Excellent Good Average Poor

19.18%

R839 401 584

R689 021 631

40.41%

82.08%

7.2%

21.87%

Socio-economic performance

Total number of houses connected between 1

April and 30 October are 9,165

Procurement from B-BBEE compliant

suppliers

was 82.08

Local content contracted more than 80%

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Eskom is still experiencing a challenge of contractors people living

with disabilities not responding to business opportunities.

Increasing Municipal Debt

Public Incidents due to cable theft and illegal connections lead to electrical

contacts and loss of life

Illegal connections and meter tampering resulting to energy losses, loss of

revenue, overloaded networks

Stealing of Eskom conductors to make pots

Land ownership and un-formalized areas resulting in delays in Infrastructure

and Electrification projects

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Eskom Challenges in North West

Strategic partneships

Eskom has forged strong collaborations with the Bokone Bophirima

Government.

This bond has enabled Eskom to support this fifth administration in

implementing Setsokotsane and roll out the VTSD programms.

At the Local Government Eskom is partnering with Municipalities to make

sure that customers are better serviced downstream. (Ditsobotla).

Eskom is always open to suggestions that will assist in building our

province Bokone Bophirima and the South Africa at large.

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