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| Vision, values
and strategic objectives |
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| R150
billion |
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| capacity
expansion |
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| 2006:
R97 billion |
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| Picture
caption |
| Trucks
haul rock from the exploratory
tunnel at Ingula pumped storage
scheme. |
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| Vision,
values and strategic objectives |
Eskom
contributes to its vision of Together
building the powerbase
for sustainable growth
and development through
its core business focus on electricity
generation, transportation, trading
and retail. It entrenches the values
of excellence, innovation, customer
satisfaction and integrity across
all business operations.
Achieving the vision requires in-depth
planning and energetic implementation
in a complex environment characterised
by higher economic growth, greater
demand for electricity and the heightened
need for significant infrastructure
expansion with attendant competition
for scarce materials, funding, skills
and supplier inputs. Challenges
are compounded by the rising cost
of primary energy and new components,
regulatory pressure, restructuring
of the electricity distribution
industry, expectations of better
environmental performance and the
growing involvement of stakeholder
groups. |
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| Four
strategic objectives are key: |
| • |
Sustaining
quality and continuity of
supply |
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This
requires effective management
of total system capacity and
reliability planning, focusing
on primary energy availability,
maintenance, refurbishment
and energy efficiency. Stretch
targets need to be set while
maintaining rigorous occupational
health and safety standards. |
| • |
Capacity
expansion |
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Successful
delivery on the capacity expansion
programme is central to Eskom's
vision and entails thorough
environmental impact assessments,
site selection and optimisation,
procurement efficiency, project
management and commitment
to health and safety in the
construction environment while
rigorously applying Eskom's
climate change and air quality
strategies. The challenge
is to build new plant, on
time and on budget, while
running existing plant at
optimal levels. |
| • |
Funding
and resourcing |
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The
build programme imposes significant
funding and resourcing requirements.
Appropriate skills and information
management systems are also
vital to ensure a sustainable
business and delivery on the
build programme. Other key
factors include multi-year
pricing determination, revenue
management, efficiency initiatives
and Eskom's skills acquisition
and retention strategies. |
| • |
Leveraging
business operations for developmental
benefits |
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Sustainability
shapes the way Eskom conducts
business and provides the
context for its developmental
initiatives. |
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| Picture
captions |
| 1. |
Trenches
are dug for fencing at the Ankerlig
power station. |
| 2. |
Drilling
machines during construction
of the Ankerlig power station
in the Western Cape. |
| 3. |
Thabo
Nthatisi and Fairhope Mogashoa
(in the background) from the
Witbank Contact Centre
tend to customer calls. |
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The
magnitude of the current business
procurement spend and the planned
capacity expansion programme create
opportunities for maximising the
organisation's contribution to government's
Accelerated and Shared Growth Initiative
for South Africa. The mechanisms
include the fostering of small and
medium enterprises, black women-owned
businesses and skills development,
accelerated electrification and
Eskom's corporate social investment
spend. Local content will be a core
requirement when major contracts
are awarded.
All strategic objectives are pursued
while paying due regard to the environment,
stakeholder engagements and short-term
priorities. |
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| Enabling
strategies |
Various
initiatives will be implemented
to facilitate Eskom's four strategic
objectives. Focused research and
development will help Eskom reach
its technical performance and capacity
expansion objectives. A stakeholder
management strategy will ensure
close cooperation with stakeholders,
providing an enabling environment
for the business. Heightened commitment
to the customer will improve the
service culture within the organisation,
support the expansion programme
and further improve relationships
with a growing customer base.
The theme of this annual report
is Partnering for growth.
Eskom is a national asset.
As such, it cannot operate successfully
without strong partnerships. As
a public enterprise we work closely
with government, more specifically
our shareholder – the Department
of Public Enterprises – and
the Department of Minerals and Energy
(responsible for energy policy),
to mention but a few. Given the
legislative requirements attached
to a build programme and the maintenance
of the electricity network, we work
in close collaboration with regulatory
bodies such as the National Energy
Regulator of South Africa and the
National Nuclear Regulator. In this
growth phase we clearly also need
strong alliances with local and
international funders and investors,
given our R150 billion capital investment
over the next five years. In the
current scenario of tight margins
and demand pressures, Eskom needs
both industry and residential users
to partner with it to develop a
culture of energy efficiency. Equally,
Eskom relies on strong partnerships
with suppliers to ensure the creation
of adequate electricity infrastructure,
now and in the future. Critical
partners are our staff who maintain
current plant and build new plant
– offering new, challenging
careers to many.
Our annual report is structured
around the current and future material
aspects that we face, and these
are determined through our business
priorities, risks and issues that
are raised by our stakeholders. |
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