Eskom mandate, vision and mission
Eskom’s mandate, is to lower the cost of doing business in South Africa, enabling economic growth, and providing electricity in an efficient and sustainable manner. The mandate is informed by the Department of Public Enterprises (DPE), which outlines the Shareholder’s expectations of Eskom over the planning horizon.
The vision and mission were developed to support the mandate.Eskom’s business model, operating structure, and footprint
Eskom creates value through the generation, transmission, distribution, purchase, and sale of electricity. Its value creation model below depicts how it transforms inputs into electricity supplied to customers. Electricity is generated by transforming inputs from the natural environment, such as coal, nuclear fuel, fuel oil, and diesel, as well as water and wind, into electricity. This energy is transmitted over Eskom’s ~33 000km of network in which the supply and demand of electricity are balanced in real time, maintaining the frequency of the power system at 50 hertz (Hz). The electricity is distributed through an extensive distribution network that covers the entire country to supply over 86% of South Africa’s needs and ~20% of the electricity produced in Africa.
Operating structure
Eskom Holdings SOC Ltd is a state-owned company (SOC) as defined in the Companies Act, 2008 and is wholly owned by the South African Government. The Department of Public Enterprises as the Shareholder Ministry sets our mandate and outlines the expectations from government through the Strategic Intent Statement (SIS) and the Shareholder’s Compact (SHC). As a state-owned entity, Eskom also plays a significant developmental role in support of the National Development Plan 2030 (NDP), by supporting job creation, economic and skills development, broad-based black economic empowerment
(B-BBEE), transformation and other national initiatives.
The Department of Mineral Resources and Energy (DMRE) is responsible for energy policy. Key documents like the Integrated Resource Plan (IRP), the Electricity Regulation Act (ERA) and the Electricity Pricing Policy (EPP) are instruments that outline the direction of the electricity sector in which Eskom operates.
The National Energy Regulator of South Africa (NERSA) regulates the industry under the National Energy Regulator Act, 2004 and the Electricity Regulation Act, 2006 by providing licences, regulatory rules, codes, and guidelines. NERSA also determines Eskom’s revenue allocation in accordance with the Electricity Pricing Policy (EPP).
The National Nuclear Regulator (NNR) provides oversight of our nuclear power station, Koeberg, by ensuring that it complies with nuclear safety standards to protect individuals, society and the environment against radiological hazards linked to the use of nuclear technology. Eskom is also subject to oversight or regulation by several other government departments (e.g., National Treasury (NT), Ministry of Electricity (MoE), Department of Forestry, Fisheries, and the Environment (DFFE)), and Parliamentary committees.
Eskom’s core divisions, Generation, Transmission and Distribution, rely on corporate support functions to operate effectively. The main subsidiary, Eskom Rotek Industries, performs turbine and transformer subsidiary repairs and provides specialised construction and transport services, in support of the electricity business, while other subsidiaries also provide strategic support services.
The figure below provides Eskom’s high-level organisational and regulatory structure.
Eskom transforms inputs from the natural environment – coal, nuclear, fuel, diesel, water, and wind – into more than 90% of the energy supplied to a wide range of customers in South Africa and the Southern African Development Community (SADC) region. To balance electricity supply and demand in real time, the System Operator (soon to be the Independent Transmission and System Market Operator, ITSMO, as the Transmission business continues to legally separate) must maintain the frequency of the power system at 50Hz.
Eskom is one of the few remaining vertically integrated utilities connected to the Southern African Power Pool (SAPP) through an interconnected grid, which serves to support grid stability. Eskom relies on SADC members to maintain sufficient and reliable transmission grids in their countries.
The foundation of the business is the generation, transmission, distribution, and sale of electricity, supplemented with the construction of new power stations and network infrastructure. The Gx, Tx, and Dx Divisions rely on support in the form of finance, human resources, procurement, information technology, telecommunications, strategy, risk and sustainability, legal and compliance, and stakeholder relations. In support of the electricity business, Eskom Rotek Industries (a subsidiary) performs turbine and transformer repairs and provides specialised construction and transport services.
To be eligible for an Eskom learnership, you generally need to be a South African citizen, hold a National Senior Certificate (or equivalent), and be willing to undergo interviews and medical examinations. You must also be between 16 and 35 years old.
Here’s a more detailed breakdown of the requirements:
General Requirements:
Citizenship: You must be a South African citizen with a valid ID number.
Age: Learnerships are generally available for young people who are just leaving school, college, or other training institutions, or for people who have been unemployed for some time.
Education: You need a National Senior Certificate (Grade 12) or equivalent.
Willingness: You must be willing to undergo an interview and medical examination or health declaration.
Full-time studies: Applicants must be for full-time studies at an accredited South African institution.
Specific Requirements (May Vary by Program):
Plant-Operator Learnerships:
Grade 12 with Maths 50%, Physical Science 50% and English 40%.
N3 with Maths 50%, Science 50% and English 40%.
NCV Level 4 Maths 50%, Science 50% and English 40%.
Other Learnerships:
Specific requirements will vary depending on the specific learnership program. Always check the details of the specific learnership you are interested in.
STRATEGIC INTENT STATEMENT
As a state-owned entity, Eskom must implement government policy and strategy. The Shareholder’s Strategic Intent Statement (SIS) outlines government’s short-to-medium-term and long-term objectives for Eskom to achieve. Eskom has adopted these SIS objectives to ensure that Eskom remains a critical and strategic contributor to government’s goal of ensuring security of electricity supply to the country, and enabling economic growth and prosperity.
Eskom Holdings SOC Ltd has the Government of the Republic of South Africa as its sole shareholder, with the shareholder representative being the Minister of Public Enterprises. As a public entity, it is governed by the provisions of the Public Finance Management Act 1 of 1999 (PFMA). The PFMA requires a company to conclude a shareholder compact with the shareholder representative. The shareholder compact has to contain shareholder expectations in the form of predetermined objectives and key performance indicators and ensures alignment between the Board and the shareholder representative. In addition, the PFMA requires that a company submit a strategic corporate plan to the shareholder on an annual basis, setting out its strategic objectives, with plans and targets to achieve those objectives.
The governance framework, which regulates Eskom’s relationship with its Shareholder (the Government of the Republic of South Africa) and guides the way Eskom does business, is set out in the figure below
