Your previous page
You are here: Home > Key reports > Directors' report > 4. Safety and environment

Directors' report

4. Safety and environment

4.1 Occupational hygiene and safety risk management

Performance
Eskom is committed to provide a safe and healthy working environment to all its employees and contractors. Although there were improvements in safety performance during the review period, the overall occupational hygiene and safety performance was below expectation and remains a priority. A revised safety strategy was implemented in early 2005 to address performance, and is discussed alongside.

The executive management has continued to emphasise occupational hygiene and safety as a key priority for Eskom.

The disabling injury incidence rate (DIIR¹) and number of fatalities are key indicators of Eskom’s hygiene and safety performance. Although there have been fewer disabling injuries compared to the previous period, their severity is cause for concern. Mitigating action has been prioritised.

Safety performance


	Target	Actual	Actual	Actual
	March	March	March	March
	2006	2006	2005¹	2005²
	(12 months)	(12 months)	(12 months)	(15 months)
Work-related safety performance
Total fatalities, number	n/a	10	17	19
Electrical contact fatalities, number	n/a	3	3	3
Vehicle accident fatalities, number	n/a	2	8	10
Other fatalities, number	n/a	5	6	6³
Disabling injury incidence rate including occupational diseases	<0,40	0,40	0,45⁴	n/a⁵
Electrical contact injuries, number	n/a	25	16	20
Public safety
Total public fatalities, number	n/a	34	31	40
Electrical contact fatalities, number	n/a	20	21	29⁶
Fatalities as a result of other causes, number	n/a	14	10	11
Contractor safety
Total contractor fatalities, number	n/a	12	13	17
Electrical contact fatalities, number	n/a	5	4	5
Other fatalities, number	n/a	7	9	12

^1. Period from 1 April 2004 to 31 March 2005. ^2. Period from 1 January 2004 to 31 March 2005. ^3. Adjusted as one fatality took place in December 2005, while the incident that resulted in the fatality took place in March 2005. Includes Eskom Enterprises (three fatalities). ^4.Adjusted to include Enterprises division. ^5. Only calculated as a 12-month moving average. ^6. Adjusted to include one fatality that was reported after finalisation of the prior annual report.

There was a year-on-year decrease in the number of both employee and contractor fatalities during the period. Of the 10 employee fatalities, three were attributed to electrical contact, three to falls from heights, two to motor vehicle accidents, one to burns and one to a conveyor belt accident.

The decrease in contractor fatalities can be attributed to awareness campaigns on construction health and safety management as well as more stringent measures to ensure that contractor health and safety plans address the risks these individuals face.

There was an increase in public fatalities to 34 (2005: 31). Nearly 40% of these fatalities can be attributed to vehicle accidents involving members of the public.

To implement improvement measures, management actively worked towards excellence in safety performance across operations, focusing on continual improvement by changing the behaviour and actions of people at all levels of the organisation.

During the review period, numerous interventions were introduced as part of the safety strategy to ensure a high level of involvement in occupational hygiene and safety throughout the organisation. These included introducing a comprehensive communication strategy, increased management visibility and leadership in the field of occupational hygiene and safety, monitoring the behaviour of staff and contractors and benchmarking exercises with best practice organisations to enable Eskom to continuously improve programmes. More detail on these interventions is provided below:

The role of leadership in behavioural safety

The ability of senior management members to actively demonstrate their commitment to safety is a key component to improving safety and business performance. Safety management evaluations conducted by DuPont Safety Resources have reinforced best practices in this area and the practical contribution management can make in influencing behaviour in the workplace.

A contravention booklet and health and safety toolkit was developed to assist managers with identifying occupational hygiene and safety-related non-conformances at work.

The focus on behavioural safety programmes included revising training programmes to include simulators related to electrical safety. Eskom takes a “zero tolerance” stance on health and safety at-risk behaviour and cardinal rules have been developed for implementation during the first half of 2006. Cardinal rules refers to identified standards which have a special focus due to the risk profile in terms of health and safety in Eskom.


Maintenance work being carried out at Apollo substation		Research at the fuels and combustion technology centre

Safety communication

A communication strategy to improve the safety awareness culture in Eskom was developed. Monthly themes based on safety risks faced by employees were communicated through various Eskom media. This included the dissemination of daily safety tips on the Eskom intranet, and monthly safety presentations distributed to all managers for discussion with their staff. Mass media campaigns relating to public safety continued during the period. These focused on electricity-related criminal acts and electrical safety awareness.

Contractor and construction management

In light of Eskom’s expansion and new projects, there is increased risk of health and safety-related incidents. To mitigate this, the group has formulated a construction safety, health and environment management procedure – specific to Eskom – to supplement construction regulations.

Various strategies primarily focusing on training and awareness have been considered and incorporated into a construction safety, health and environment management strategy document. Construction management seminars hosted by Eskom, together with the procedure and ongoing implementation of the strategy, should address concerns on improving health and safety.

Benchmarking exercises

DuPont Safety Resources assisted Eskom in benchmarking current practices to:

identify observed strengths in current behaviours, attitudes, practices, procedures and systems
identify areas requiring improvement
make recommendations for improvement actions

These results will be evaluated and a plan developed to address identified shortcomings to achieve a higher standard of health and safety performance.

Electrical and plant safety

Managing electrical safety is mainly achieved through the implementation of the Eskom operating regulations for high-voltage systems and the national plant safety regulations. These are top-level interventions used to promote safety in the power network and plant-related environment, and are overseen by committees comprising representatives from across the Eskom business. These committees and substructures support the drive for zero electrical contact incidents and minimisation of operating errors. During the period, the programme focused on contractor authorisation, job observations, comprehensive risk assessment, increased frequency of line inspections and awareness campaigns for employees, contractors and members of the public.

Vehicle safety

Vehicle safety campaigns continued in 2006, and focused on driver training and awareness. A workshop was held to develop vehicle safety specifications for Eskom vehicles. Discussions were held with the National Association of Automobile Manufacturers of South Africa, which assisted in drafting vehicle safety specifications for Eskom’s future needs. As part of the promotion on vehicle safety, licence disk-holders and brochures highlighting the causes of vehicle accidents and steps to avoid accidents were distributed to all employees.

Occupational hygiene

Verifications were conducted at all divisions in specific business units to evaluate whether occupational hygiene programmes and personnel running these programmes complied with legal requirements. Occupational hygiene audits were also conducted on many sites to identify areas for improvement or focus areas, among others asbestos programmes.

A booklet was developed for Eskom employees to improve general knowledge about occupational hygiene.

Fire risk management and emergency planning

Audits were conducted on internal requirements and defined best-practice criteria to ensure the adequacy of fire protection systems.

Emergency planning incidents that occurred challenged the activation of emergency plans. Where required, remedial action was taken, including improving the understanding that emergency planning encompasses business continuity as well as personal safety.

Appropriate training is changing the attitude of the organisation to realise that emergency situations threaten the lives of people as well as the running of the business. The completed emergency planning standard is aimed at ensuring that all business units develop technical contingency plans to deal with risks that threaten the smooth running of the business and which could cause disruption to the life of the community.

Nuclear safety performance

Eskom’s nuclear safety performance meets world standards when measured against the latest information on pressurised water reactors of similar design. Unavailability on some safety systems that were higher than historically achieved, as well as numerous plant trips (mostly externally induced), have however challenged the group’s ability to sustain the excellent performance levels (Institute of Nuclear Power Operations best quartile) achieved prior to these incidents. Koeberg’s performance is calculated monthly using the performance indicator procedures of the World Association of Nuclear Operators and benchmarked against the latest quarterly results from this body.

Regular reviews of Koeberg power station, compared with international industry best practice, are carried out as par t of Eskom’s ongoing commitment to nuclear safety. These are coupled with self-assessments and various technical support missions by international experts.

Public exposure to radiation
Nuclear power generation produces various gaseous and liquid radioactive effluents. The National Nuclear Regulator (NNR) sets the maximum levels of radioactivity that may be contained in effluents, which are treated by dedicated clean-up systems prior to discharge into the environment. The NNR also determines and approves the methodology used to calculate public exposure to radiation from the discharge of radioactivity in effluents. The NNR annual limit for a member of the public is set at a maximum of 0,25 milliSievert (mSv).

A radiological effluent management programme controls public exposure to radiation within strictly defined limits. This ensures that the discharges of radioactivity from Koeberg are significantly less than the maximum values permitted by the NNR. In 2006, public exposure to radiation as a result of the discharge of radioactive effluents from Koeberg was calculated as 0,0049mSv (2005: 0,0079 mSv).

To verify that effective control is maintained over effluent discharges, the environmental survey laboratory at Koeberg undertakes a surveillance programme involving the sampling and analysis of representative environmental media. This programme includes the collection of a variety of terrestrial samples (including broad-leaf vegetation, milk, sewage effluent, waste, soil, surface fresh water) and marine samples (seawater abalone, crayfish, fish, black and white mussels) from sites within 10 km of the station and from control sites further away (approximately 25 km from the station).

This surveillance programme is subject to routine quality control, benchmarked by an International Atomic Energy Agency inter-comparison study and audited through an NNR verification programme.

4.2 Environmental management system

The Eskom occupational hygiene, safety and environmental policy commits the business to the implementation of appropriate management systems to address environment, safety and occupational hygiene issues to minimise risk and ensure continual improvement. Certification to the ISO 14001 standard continues to be implemented in Eskom, with the following divisions and subsidiaries now certified:

Corporate divisions
– Corporate sustainability
– Corporate technical audit
Transmission division
Rotek Engineering (Pty) Limited
Roshcon (Pty) Limited

Where environmental risks have been identified in other parts of Eskom, self-evaluation audits and management reviews are undertaken to determine whether the environmental management system conforms to planned arrangements and has been implemented and maintained in terms of ISO 14001.
As an example, the Generation division maintained compliance with the standard in 2005 through external audits.

Eskom’s occupational hygiene, safety and environmental policy
Policy principles include:

This policy will apply wherever Eskom operations exist
Eskom will ensure that no operating condition, or urgency of service, can justify endangering the life of anyone or causing injury and will strive to prevent illness
Eskom will work with selected suppliers, customers and contractors to integrate safety, health and environment issues into their operations
Contractors working under the supervision of Eskom or on Eskom premises will comply with this policy

Eskom, as a provider of energy and associated services, will:

Establish appropriate management systems to address environment, safety and occupational health issues to minimise risk and ensure continual improvement. This will include preventing pollution and environmental degradation, where economically viable and sustainable
Comply with all legislative and policy requirements and, in the absence of appropriate principles, set standards to meet the objectives of this policy
Promote open communication on safety, health and environment issues with employees and other stakeholders
Educate, train, motivate and develop employees on occupational health, safety and environment issues
Provide and maintain a healthy and safe work environment and protect individuals against risk to occupational health and safety arising out of Eskom’s business
Contribute to sustainable development through efficient resource use, and efficient production, distribution and use of energy

Environmental legal requirements

Current performance

During the period, 55 (2005: 44) environmental legal contraventions were classified by the Eskom environmental liaison committee,
the governance body tasked with providing guidance and direction on environmental compliance in the group.

There was a major increase in the number of water-related contraventions from 9 to 24, mainly because of heavy rains during the first months of
2006. The release of water from power stations contravenes the conditions of their water permits as the power stations are not allowed to release water effluent from site.

Internal audits on the implementation of conditions of authorisation (obtained through environmental impact assessment records of decision issued to Eskom) identified that these conditions were contravened in 17 cases. These related to marking power lines (mitigation against bird collisions), communication with interested and affected parties on the records of decision and giving notice to the authorities before beginning construction. Measures were put in place to ensure compliance to conditions of authorisation.

Only one (2005: nine) contravention on emissions from Eskom power stations was registered and one (2005: two) contravention related to waste management practices.

Three (2005: nil) contraventions for oil spillage and three (2005: 10) for cutting protected vegetation without the necessary permit were reported. Six (2005: one) other contraventions were reported. One was for disturbance of an unmarked grave and the remainder were of an administrative nature involving, for example, not displaying water plant and operator certificates.

All legal contraventions are fully and formally recorded, tracked and reported to Exco for information. Audits and other investigations are undertaken where necessary.

Contraventions of environmental legislation in terms of the Eskom sustainability index

Under certain conditions, contraventions of environmental legislation are referred to Exco for attention. These include instances where censure was received from authorities, legal contraventions were not reported to government, or where the contravention was not timeously addressed. Managing directors can escalate any significant contravention to Exco if deemed appropriate. These contraventions are classified as contraventions of environmental legislation under the operational sustainability index.

Only one contravention was escalated during the period. This involved removing protected vegetation near a power line without an appropriate permit. This had a significant impact, and the relevant authority issued a letter of censure to Eskom. Refer to table below.

Eskom’s facilities and operations are subject to the environmental laws and regulations of the government, which protect the public interest and ensure effective environmental control. This is achieved by, among others, issuing authorisations for construction, permits and licences for particulate emission releases and water usage.

Legislative requirements are incorporated into policies, procedures and standards. Legal compliance audits were conducted in the operational divisions of Eskom.

Historical classification of environmental legal contraventions

Historical classification of environmental legal contraventions

Environmental accounting
Environmental accounting is the practice of identifying and reporting on expenditure incurred for environmental purposes.

During the period, R339 million (2005: R380 million) was spent on capital and R354 million (2005: R381 million) on operational environmental activities.

total enviromental expenditure

Operational versus capital environmental expenditure

Most of the expenditure in the Generation division was for air quality management at coal-fired power stations, rehabilitation at coal mines and expenditure on the Eskom capacity expansion programme. Expenditure incurred by the Distribution division was mostly for environmental assessments for power line and substation construction projects, while that in Transmission division was for disposing of polychlorinated biphenyls (PCB).

Environmental externalities
Environmental externalities² refer to costs and benefits experienced by third parties, as a result of the actions of an organisation, which are not accounted for in the price of the product.

Environmental externalities are technology- and site-specific in much the same way as environmental impacts. It would be wrong to assume that international estimates of environmental externalities associated with electricity generation can be adopted for the environmental management of the electricity supply industry in South Africa. External studies were undertaken on various electricity supply options including:

return to service of previously mothballed coal-fired plant
new coal-fired plant
pumped storage options
combined cycle gas turbine plant
pebble bed modular reactor plant
residential load management and commercial and industrial energy efficiency
open cycle gas turbines
hydroelectric plant
solar
wind

All options were found to have both positive and negative externalities, but considerable difficulty was experienced in attributing a monetary value to these, due to the scarcity of local impact studies reporting quantifiable dose-response relationships and costs, particularly in the environmental and social arenas.

Eskom has studied environmental externalities since 1995. As this research was needed to include non-financial considerations in Eskom’s decision-making processes, the traditional analysis of environmental externalities was extended to include social and economic impact assessments. In the short term, multi-criteria decision-making approaches have offered a more realistic option for incorporating externality considerations into business decision-making processes.

All major investment decisions now use a comparative analysis technique which includes financial and non-financial measures.

The research that has been conducted to date has been reviewed by peers who are leading international experts. Future work will be based on their recommendations.

Environmental performance
Environmental performance is assessed and measured through the operational sustainability index. The environmental component of this index comprises four equally-weighted key performance indicators, reflected in the table below.

Environmental performance indicators

Target

Actual

Actual

March

March

December

2006

2005

2004

(12 months)

(12 months)

Operational sustainability index indicators

Relative particulate emissions, kg/MWh sent out¹, ²

≤0,26

0,21

0,26

0,27

Specific water consumption, l/kWh sent out³≤

1,30

1,32

1,28

1,26

Enhanced PreCare/MaxiCare – environmental component

≥80,00

101,06

93,01

n/a⁴

Reported legal contraventions in terms of the operational sustainability index

Other performance indicators

Radiation exposure, milliSieverts per annum

0,25⁵

0,0049

0,0079

0,0087

Net raw water consumption, Ml

n/a

291 516

282 271

277 557

^1.Figures are calculated as a 12-month moving index.

^2. Amount of ash emitted per unit of generated power sent out (excluding Camden power station).

^3.Volume of water consumed per unit of power sent out by all generating stations (excluding Camden power station).

^4. Not calculated for that period.

^5.National Nuclear Regulator limit.

A legal contravention becomes a sustainability index contravention if one of the following applies:

The contravention results in formal censure by national, provincial or local government
The contravention is not reported to government under the National Environmental Management Act, Act 107 of 1998, and or any other relevant environmental legislation (eg the National Water Act)
The contravention is not reported within the division (in the same reporting month), and subsequently to the Eskom environmental liaison committee
The contravention is registered on the sustainability index by a committee member with the approval of the relevant managing director or designated delegate
The contravention is not effectively addressed within an appropriate time frame as identified by the committee and ratified by the Exco sustainability subcommittee

Additional reporting indicators include contraventions of legislation, environmentally-related complaints, environmental expenditure, land and biodiversity management, environmental impact assessments and waste. These indicators are reported in this report.

Performance against key environmental indicators was satisfactory except for specific water consumption. A contributing factor to the increase in specific water consumption was hot, dry and windy conditions during August to November 2005. This led to most coal-fired power stations experiencing higher evaporation rates and using more water for dust suppression on ash disposal sites.

An improvement in water consumption towards the end of December is attributed to the relatively high levels of rainfall experienced at a number of power stations. This however led to a number of unauthorised releases of water effluent from certain power stations.

		Environmental events are reported monthly to the Eskom environmental liaison committee where they are classified as events, legal contraventions or contraventions of environmental legislation in terms of the operational sustainability index. Of the 55 (2005: 44) legal contraventions reported, one (2005: three) was registered against the operational sustainability index. Refer here for more information on legal contraventions.
The Apollo control room

The legal contravention was escalated as reportable in terms of the operational sustainability index following a letter of censure issued by the Department of Water Affairs and Forestry (DWAF).

An investigation found that marula trees (Schlerocarya birrea, subsp; caffra) were cut without the required DWAF permit. This was in violation of Eskom policies and procedures.

Air quality management

Particulate emissions

The emission of particulates (ash) is regulated by the chief air pollution control officer (Capco) of the Department of Environmental Affairs and Tourism. Registration certificates for individual power stations are issued by the Capco. These state the actual quantity of particulate emissions that may be emitted from power station stacks during a 31-day period as well as the level of emission allowed in milligrams per standard cubic metre (mg/Sm³).

The performance target for particulate emissions of ≤ 0,26kg/MWh (2005: ≤ 0,27kg/MWh) sent out was achieved, and is the best ever achieved by Eskom. Retrofitting fabric filter bags at Arnot power station was the main contributor to this improved performance in the last 12 months. Total particulate emissions reduced by 21,4% year-on-year.

A programme of replacing electrostatic precipitators with bag filters at Arnot power station was completed in mid-2005. Particulate emissions from the station have reduced from more than 2,0kg/MWh in the mid-1990s to 0,19kg/MWh during the reporting period. Similarly, Hendrina improved performance from 4,25kg/MWh SO to 0,11kg/MWh SO over the same period.

Targets prior to 2000 were based on coal-fired power stations only.

Relative particulate emissions: 2001 to 2006

Factors influencing gaseous emissions include the amount of coal burned, sulphur and nitrogen content of the coal, burner set-up, maintenance and operation of the milling plant, and thermal efficiency of the plant.

Gaseous emissions

Eskom annually calculates the quantities of oxides of nitrogen (NO_x), sulphur dioxide (SO₂) and carbon dioxide (CO₂) emitted from power stations based on the coal characteristics and power station design parameters.

Map of air quality monitoring sites

map of air quality sites

Annual ambient means for Oxides of Nitrogen (NO_x)

annual ambient means for Oxcides

The National Environmental Management: Air Quality Act, 39 of 2004, Schedule 2 ‑ Ambient Air Quality standards sets an annual average of
200 parts per billion (ppb).

Palmer monitoring site was closed after 14 years of operation, as a reliable comprehensive data set had been obtained to address concerns of atmospheric deposition in the eastern Mpumalanga highveld forestry area.

Makalu monitoring site was established in the Sasolburg area when the Eskom Highveld, Taaibos and Vaal power stations were still operating, to assess added impacts resulting from the commissioning of Lethabo Power Station. This site was decommissioned in 2005 as a comprehensive
20-year data set had been established.

Ambient air quality

Atmospheric pollution from industrial sources, including the power-generating industry, continues to be a major concern in South Africa. It is important
that all pollution sources contributing to ambient air quality are taken into account if regional planning on air quality is to be conducted. Data from continued ambient air quality monitoring can contribute key information for future strategic planning.

Eskom has operated an ambient air quality monitoring network since the 1980s which includes strategic sites in the immediate vicinity of certain power stations as well as research sites. The network provides national and regional information on long-term trends in air quality from various sources.

The ambient network measures not only Eskom emissions, but all emissions from surrounding sources. Monitoring equipment is calibrated against National Meteorological Laboratory standards in a laboratory accredited by the South African National Accreditation System together with the sites. All sites, except two, are equipped to monitor SO₂, NO_x, ozone (O₃), fine particulate matter (FPM) and the relevant meteorological parameters of wind speed, wind direction and ambient temperature. The remaining two sites are equipped to monitor SO₂, FPM and meteorological parameters.

Results indicate that annual concentrations of SO₂, NO_x and FPM at all sites, except Leandra, are within the standards of the National Environmental
Management Air Quality Act. The FPM annual concentration was above the limit at the Leandra site, which is not directly influenced by any
Eskom sources, as it monitors adjacent residential emissions.

Annual ambient mean fine particulate emissions (PM-10)

Annual ambient means of oxcides

The national ambient air quality standards set an annual average of 60 micrograms per cubic metres (ug/m³). The figures for 2004/05 are not representative due to reduced data capturing at the Kendal site.

Annual ambient mean Sulphur Dioxide (SO₂)

annual ambient mean Sulphur

The national ambient air quality standards set an annual average of 19 parts per billion (ppb).

Land, biodiversity and quality of supply management
Eskom’s policy on land management requires the sustainable use and maintenance of all Eskom land to ensure conformance with applicable legislation and optimise asset value. In some cases, partnerships are established to achieve these goals.

Nature reserves have been established where feasible, and biodiversity managed in terms of the site objectives. Koeberg Nature Reserve, for example, has been managed as a site of high biological significance for some years. It is now a prime example of the fynbos strandveld and is used for research
and investigation purposes. Hiking trails have been developed and the reserve offers visitors an ecotourism experience unique in the area.

In accordance with the requirements of the record of decision of the Braamhoek pumped storage scheme in the Drakensberg, near the town of Van Reenen, approximately 8 000 hectares of grassland will be conserved. It will be managed to optimise habitats for threatened species in the area, and conserve a unique section of grasslands and wetlands on the escarpment. The Braamhoek partnership was formed to focus on environmental conservation before, during and after construction of the planned pumped storage scheme. Partnership members are BirdLife South Africa, Eskom
and the Middelpunt Wetland Trust. The partnership was formed to help conserve wildlife, particularly the White-winged Flufftail (Sarothrura ayresi), a critically endangered species that visits the wetland.

Other areas, including the Plattekloof site in Edgemead, Cape Town, and areas around some substations and power stations are managed to maintain ecological diversity. This integrated use of land has benefits for both society and Eskom, with biodiversity in the area serving as an indicator of environmental conditions, as well as a buffer between Eskom infrastructure and local communities.

Every effort is made to reduce the impact of power lines and other infrastructure on biodiversity, eg birds and mammals. The strategic partnership between Eskom and the Endangered Wildlife Trust (EWT) started 10 years ago. The EWT partnership has become an international centre of excellence in monitoring and mitigating avian interaction.

Because fires under power lines affect the quality of electricity supply, early detection is important to trigger actions to reduce this impact. Eskom,
in partnership with the Satellite Application Centre of the Council for Scientific and Industrial Research (CSIR), has developed a fire-detection system. The application of remote sensing with cellphone technology in the active fire information system is the first of its kind in the world, and allows Eskom to respond quickly to fires under power lines, which should reduce damage and disruption of power supply.

Changing land use, particularly the introduction of game farming, has meant that animals are being introduced to areas where they did not occur when power lines were constructed. This has led to interactions, particularly between giraffe and power lines, and necessitated raising lines in some areas. Landowners are encouraged to inform Eskom when introducing animals to their properties to allow appropriate modifications to structures.

Servitudes are islands of biodiversity in some areas, and act as a link between protected areas in others, allowing the movement of indigenous species along these corridors. Environmental management plans for power lines include biodiversity issues and help ensure management of the servitudes is sustainable.

Waste management
Eskom supports the government’s commitment to waste reporting and tracking as defined in the national waste management strategy.

Conservation of resources is continually promoted through careful resource use, reducing waste generation, recycling, re-use and appropriate disposal. For example, at Eskom head office, 182 tons (2005: 240 tons (15 months)) of paper were recycled.

Waste type


	2006	2005
	(12 months)	(15 months)
Materials containing asbestos, tons	6 655	6 100
Polychlorinated biphenyls, tons	243	33
Low-level radioactive waste (Koeberg)
– steel drums, cubic metres	91,3	282,5
Intermediate-level radioactive waste (Koeberg)
– concrete drums, cubic metres	52,4	114,5
Ash, million tons	±33	±40

The divisions report on different waste streams, which vary in significance according to their operations. Reporting includes general domestic waste, garden refuse, building rubble, metals, fluorescent tubes, and healthcare risk waste. Metals, paper and printer cartridges are recycled.

In terms of significant waste streams, quantities of waste disposed of are shown above.

The increased amount of asbestos disposed of reflects asbestos management programmes at Camden, Grootvlei and particularly Komati power stations. The increase in the disposal of polychlorinated biphenyls reflects equipment upgrading and replacement. The year-on-year change in the radioactive waste quantities (Koeberg) is dependent on the number of outages and refuelling during the period.

Of the approximately 33 million tons of coal ash produced at Eskom’s coal-fired power stations over the 12-month period, 5,4% (2005: 4,8%) was recycled. Ash for recycling was collected from Lethabo, Kendal and Matla power stations. This ash is used, among other uses, in the production of cement. All remaining ash is disposed of in ash dams and dumps at power stations and rehabilitated using soil and local vegetation to minimise the impact on the environment.

Eskom has over 330 000km of power lines throughout South Africa. These cross all habitats in South Africa, and are managed with two objectives. Firstly, impacts on the environment need to be reduced. This is considered during the design and construction of new power lines, and modifications may be necessary on older power lines. Aesthetic considerations, impacts on biodiversity, access roads and erosion management are among the issues managed. Secondly, environmental impacts on infrastructure need to be considered. These include issues such as fires, erosion and the encroachment of alien vegetation which can severely affect infrastructure.

The environment is considered during the construction, management and maintenance of power lines, and servitudes are managed to reduce significant impacts. Vegetation management requires the trimming of vegetation that is likely to intrude on the minimum clearance distance required by law. This is to ensure the safety of people near the power line, and to prevent flashovers.

Specific projects undertaken by EWT during the period include the continuation of the KwaZulu-Natal vulture study project initiated in 2004. This study identified vulture colonies, foraging ranges, vulture restaurants and overlaid this data with distribution lines to determine the different levels of risk to the birds, as well as the impact on quality of supply caused by vulture interactions (mainly excretion) on Eskom infrastructure.

Efforts are currently under way in the Western Cape to launch a similar programme for blue cranes. Other notable initiatives include extensive modification programmes to raptor-unfriendly networks in the Northern Cape, North West and Eastern Cape provinces, through anti-electrocution measures. A recent example is the Northern Cape vulture programme that was completed in April 2005, where approximately 450km of distribution power lines were modified to prevent the electrocution of vultures.

The Eskom Distribution North-Western Region received the Gariep Raptor Conservation Award for its contribution to conserve vultures in the Northern Cape through this project. This award is presented annually to a person or organisation who has contributed significantly to the conservation of raptors in the province.

A joint project between Eskom, the University of Cape Town and the EWT has successfully reduced line faults caused by eagles breeding on power lines in the Karoo region of the Western and Northern Cape provinces by at least 70%. This was achieved without harming this important breeding population of eagles.

Climate change
Eskom views climate change as a serious threat to national sustainable development priorities of poverty eradication and economic growth and recognises the need for a climate change policy and strategy. A robust strategy was developed in 2005 in line with government’s national climate change response strategy which recognises that both opportunities and risks that exist in the consideration of climate change. In 2006, the roll-out of the strategy was implemented. Priority areas include climate change criteria as part of decision-making, continual improvement in reporting, commitment to national and international government and business processes, including strengthening the clean development mechanism.

As part of the strategy, Eskom reiterated its aim of reducing the percentage of coal in the primary energy mix by 10% by 2012. This goal was first declared at the World Summit on Sustainable Development in 2002 and was reconfirmed at the national climate change conference hosted by DEAT in October 2005.

In planning for future electricity supply, Eskom assesses all options. These include conventional pulverised coal as well as carbon-reducing options such as gas, nuclear, clean coal technologies and renewables. Refer below for information on Eskom’s renewable energy strategy. Non-generation options that are imperative to reducing greenhouse gas emissions include the demand-side management programme and other energy efficient initiatives. In line with this, Eskom has initiated a project to reduce internal energy use by efficiency improvements. Eskom is also committed to the national energy efficiency white paper and has signed the voluntary business energy efficiency accord. Eskom regards adaptation to climate change as important, as studies show that parts of South Africa will experience increased drought due to climate change. Thus, Eskom is determining what policies and actions will be required to manage the area of adaptation, such as determining the optimal use of water.

Climate change criteria are included as part of Eskom’s investment decision-making criteria. Specific climate change criteria include assessing options
based on potential carbon dioxide emissions, thermal efficiency of the plant, clean development mechanism potential and potential for carbon sequestration. Eskom has also begun investigating a carbon capture and storage strategy.

Eskom remains committed to reporting on its climate change priorities, specifically the strategy roll-out and participation in processes aimed at dealing with climate change adaptation and mitigation, and its performance in reporting carbon dioxide emissions.

CO₂ avoidance through Eskom’s energy efficiency component of demand-side management activities in 2006 includes:

CO₂ reduction


	Actual	Actual
	GWh	kt CO₂
	sent out¹	avoided
	2006	2006
Projects completed in 2006 (115MW)	277	271
1. This performance is being tracked by independent measurement and verification entities as there is a time lag of up to six months before savings can be demonstrated.

Eskom’s commitment to the national and multilateral processes
Eskom has direct representation on the national committee on climate change which advises the Minister of Environmental Affairs and Tourism on pertinent matters. South Africa is developing the second national communications protocol as part of its international obligations under the United Nations’ framework convention on climate change. Eskom will provide information and comments where relevant. This includes participating in the project to develop a greenhouse gas inventory for the country. Eskom will also serve on the South African delegation to the conference of the parties to the United Nations’ convention on climate change, as well as the carbon sequestration leadership forum.

Eskom provides input to several other related international bodies, such as the intergovernmental panel on climate change. Eskom participates with various international groups concerned with climate change such as the World Business Council for Sustainable Development, the International Chamber of Commerce’s climate and energy task forces and the International Emissions Trading Association. Eskom participates by providing comments on documents prepared by these organisations for international processes, particularly in providing a developing-country perspective where relevant.

Eskom remains committed to a multilateral process by supporting the Kyoto protocol mechanisms such as that on clean development. Eskom
submitted four voluntary project information notes to the national authorities in March 2006 as the first step in the development of clean development projects. These projects include renewables, fuel switching and efficiency options. Eskom will continue to assess the potential for clean development projects that contribute to South Africa’s sustainable development. As part of this work, Eskom has initiated studies to determine the carbon emission factor for the South African grid.

Other information relevant to climate change is detailed elsewhere in this report. This includes:

Carbon dioxide and certain other component gases, collectively known as greenhouse gases, retain heat within the earth’s atmosphere and serve to maintain the global temperature in the same way that a greenhouse retains heat from the sun.

It is widely believed that human activities, particularly the combustion of fossil fuels worldwide, are leading to a build-up of greenhouse gases in the atmosphere to the extent that the earth’s climate will change significantly and globally, with severe consequences. This phenomenon is known as global warming or global climate change and there is increasing evidence to suggest it is happening at an increasing pace.

The need to research and combat global warming led to the United Nations framework convention on climate change with the stated objectives of achieving the stabilisation of greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous anthropogenic interference with the climate system.

South Africa ratified this convention in 1997. In 2002, South Africa acceded to the Kyoto Protocol which is the implementing instrument of the convention. The protocol came into force in February 2005, after the requisite number of 55 signatory nations responsible for more than 55% of all global greenhouse gas emissions had been obtained. The protocol calls for the developed countries of the world to decrease their emissions of greenhouse gases to pre-1990 levels by 2012.

South Africa seeks to take advantage of the opportunities for assisted sustainable development through Kyoto Protocol mechanisms, as well as obtain assistance in alleviating the impacts of climate change, given that South Africa is a semi-arid country that is particularly vulnerable to the impacts of climate change.

The motor driving the turbine at the Palmiet pumped
storage scheme

Klipheuwel wind demonstration facility near Cape Town

Renewable energy
Renewable energy technologies are among the supply-side options being considered by Eskom.The organisation has developed a renewable energy strategy which outlines a number of focus areas, including research and development, investigating investment and clean development mechanism³ opportunities and regional considerations such as the development of hydro resources.

Renewable energy sources which have been evaluated are wind, solar, wave, tidal, ocean current, biomass and hydro. Through the South African Bulk Renewable Energy Generation (SABRE-Gen) programme, a vehicle was established to enable the evaluation of multi-MW, grid-connected generation. The initiatives all follow the same functional structure: namely the identification of promising options, an assessment of the financial and economic viability as well as resource potential in the country, the implementation of demonstration projects to conduct operational research and the provision of strategies for the uptake and sustainable deployment of the technologies where feasible.

The wind and concentrating solar power components are the most advanced, with a wind-demonstration facility in the Western Cape and a large-scale concentrating solar power project in the feasibility stage. The Klipheuwel wind energy-demonstration facility was commissioned in February 2003 and has delivered significant operational and research-related information. A total of 12,2GWh has been generated since commissioning, and the wind turbines are operating at an average availability of 90%. Research has focused on how the technology interacts with the South African
environment and has highlighted unique factors that can impact its performance.

The concentrating solar power project is assessing the feasibility of constructing a 100MW central receiver-type power plant in the Northern Cape. The feasibility study focuses on addressing technology risk issues, while refining the financial scenario facing such a development.

The bio-energy and wave initiatives are still in the early stages of project development.

Eskom participated in a pilot project by the Department of Minerals and Energy which investigates green power trading. Eskom contributed to the development of draft market rules and will act as the independent market operator for the duration of the project.

A number of pilot projects on solar water heating are under way in residential and commercial buildings, with an additional pilot at an industrial site under investigation.

Energy efficiency
An internal advisory body on energy efficiency has been established to guide the organisation on energy efficiency programmes and initiatives. Eskom has initiated a project to save energy through internal efficiency programmes, as it is a major user of energy. This project has been approved by Exco and is being implemented. The programme aims to optimise consumption through education of employees, and identification and implementation of efficiency projects at Eskom installations. Eskom staff will serve as an example to local communities and industry and assist in implementing an energy-efficient culture in South Africa.

Energy Accord
In May 2005 Eskom, as part of South African business and government, signed a voluntary energy efficiency accord through the National Business Initiative (NBI). The agreement between industry and government commits to a long-term reduction in projected internal energy use. The accord recognises the objectives of the DME's energy efficiency strategy. This strategy targets a 15% reduction in final energy demand for the industrial sector by 2015, and a 12% improvement in energy efficiency for the nation by the same date. This target is expressed as a percentage reduction against the projected national energy use in 2015. Forecast use takes into account projected increases in economic development without any additional efficiency interventions. This ensures that energy efficiency does not impact negatively on South Africa's commitment to economic growth, investment and job creation.

Coal burnt and coal purchased
		2006	2005	2004
		(12 months)	(15 months)	(12 months)
Coal burnt, million tons – actual		112,1	136,4	109,5
– budget		113,6	133,8	106,4
Coal purchased, million tons	– actual	111,7	137,8	112,7
	– budget	125,3	135,0	106,8
BEE purchases, million tons		26,2	28,6	23,2

4.3 Energy purchases and resource management

Eskom continued to review its fuel supply options and plant operating methodology to reduce costs and improve efficiency and flexibility.

Coal
Eskom has long-term coal supply contracts with mines to ensure the continuous supply of coal to the power stations. Coal procurement was extremely difficult during the review period. It began with lower electricity growth than budgeted, compared to the previous periods. This would normally have resulted in a lower burn at the more expensive coal-fired stations. However, because of a number of technical problems, combined with the daily electricity load profile, the decrease in coal burn at the more expensive stations did not materialise as expected. The most significant impact on the coal burn was when Koeberg unit 1 went down in December 2005, requiring additional coal supplies at more expensive stations. Refer to table above.

Although weather conditions were favourable for coal production up until December 2005, extraordinary rainfalls for the first three months of
2006 resulted in significant production problems at the open cast mines.The increase in demand at certain power stations as a result of the Koeberg
incident as well as other electricity production problems lead to significant decreases in coal stocks at these stations. Additional coal supplies had to be purchased on an emergency basis to mitigate supply risks.

Transport of coal by rail and road remained problematic throughout the period. Road and rail transport is used when purchasing coal from sources
other than from tied collieries. A number of road transporters have not performed in line with expectations. The limited capacity of rolling stock
necessitated greater use of road transport to Majuba power station. These issues are now receiving urgent management attention as it is anticipated that it should be resolved early in the new financial period.

The conditions of provincial and national roads used by Eskom’s transporters have deteriorated during the period despite regular communication with the relevant road transport authorities and the Minister of Public Enterprises, to speed up road repairs. Eskom’s communication efforts will be intensified in the period ahead.

The Majuba coal transport project, which consists of a heavy haul rail link between Ermelo and Majuba power station, will be constructed by Eskom,
pending approval by the Minister of Public Enterprises. Coal supplies will continue to be transported by road and the general freight railway line
until the expected completion date of 31 December 2009.

Black economic empowerment (BEE)

Eskom continues to support BEE coal-mining initiatives when purchasing coal, as well as using BEE road transport companies for transport of coal.

The Steenbras Dam feeds Palmiet pumped storage station

Water
Power stations use raw water from government water schemes and mine water at Lethabo and Tutuka. The target in litres/kilowatt hour sent out (ℓ/kWhSO) for water is determined from a weighted average of individual power station targets, based on the budget production plan for that financial period. Each power station benchmarks its targets against historical performance and theoretical water consumption.

In the review period, performance was influenced by relatively drier conditions in the first half, the unplanned outage of Koeberg unit 1 and poorer-than-expected performance at some power stations. Refer to table below.

The assurance of water supply to power stations in the Mpumalanga highveld was identified as a risk due to increasing demand and decreasing yield. On 11 October 2005, Eskom finalised a 20-year water-supply agreement with DWAF to construct a pipeline linking the Vaal River Eastern subsystem with Vaal Dam. DWAF has mandated the Trans Caledon Tunnel Authority (TCTA) to fund and implement this project by October 2007.

specific water consumption

Water used in the production of electricity

	Actual	Actual	Actual
	2006	2005	2005
	(12 months)	(15 months)	(12 months)
Water used at Eskom powerstations, Mℓ	291 516	347 135	282 271
Electricity produced, GWh	221 216	273 404	220 611
Specific water consumption, ℓ/kWh sent out	1,32	1,27	1,28

Eskom continues to liaise closely with DWAF to ensure effective and efficient management of water supply systems serving existing power
stations and planning water infrastructure projects for new power stations.

Hydro and pumped storage schemes
Hydro-electric power stations and pumped storage schemes provide a cost-effective generating technology to respond rapidly to peak electricity
demand. Hydro, pumped storage schemes and gas-turbine power stations contributed 1,84% (2005: 1,67%) of total energy produced by Eskom power stations.

Eskom has started the construction of the Braamhoek pumped storage scheme. It is expected that the first unit will be operational in 2012.
Preliminary work for the design and construction of a second pumped storage scheme in the area of the town of Steelpoort has commenced. As peak demand for electricity continues to grow, Eskom will continue to explore the development of new hydro-electric and pumped storage schemes as part of its renewable energy mix.

Nuclear fuel
Two enriched uranium product supply contracts with government authorisation were negotiated and signed during 2004. These contracts, as well as the fuel fabrication contracts entered into during 2002, are ensuring the availability of nuclear fuel to Koeberg power station at competitive prices until the end of 2010.

General footnotes
^1. DIIR expresses the number of workers who suffered a disabling injury during a 12-month period.
^2. Based on the definition by the European Commission studies, 1998.
^3. The Kyoto Protocol established emissions trading and joint implementation between developed countries and a clean development mechanism (CDM)
to encourage joint emission-reduction projects between developed and developing countries.

Preceding page in the report

Next page in the report