Company Information

Company information overview

Strategic 100% state-owned electricity utility, strongly supported by the government

Performed 163 613 household electrification connections during the 2020 financial year

As at 31 March 2020:

  • 6 716 201million direct customers (2017: 5.6 million)
  • 30  (including 1 nuclear) operational power stations with a nominal generating capacity of 45 117MW
  • Total sales of 205 635GWh
  • Approximately 391 784km of cables and power lines
  • 44772 employees, inclusive of subsidiaries
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.
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For more information please contact the Office of the Group Chief Executive: Strategy Support Division
 
Source: 2018/19 – 2022/23 Eskom Holdings Corporate Plan

Eskom Heritage

​Eskom Heritage Unit is responsible for protecting and highlighting the organisation’s historical footprint, as well as promoting the conservation of heritage, to enhance pride in the history of the organisation. The unit also ensures that Eskom complies with the National Heritage Resources Act of 1999​​.

Ethical Business Conduct

The Way, the Eskom way

Eskom commits itself to upholding its values and ethical standards and demonstrating this commitment to all its stakeholders. Therefore, Eskom’s directors and employees are required to apply the Code in their day-to-day activities, especially if there are no rules governing the decisions. 
 
The Eskom Code of Ethics; ‘The Way’, reflects the organisation’s commitment to the highest ethical standards and principles in all Eskom business.  It not only describes the acceptable behaviour and attitudes that are essential in living the Eskom values of Zero Harm, Integrity, Innovation, Sinobuntu, Customer Satisfaction and Excellence (ZIISCE), but it also establishes the foundation for the interaction of Eskom’s Board of Directors and employees with colleagues, customers, suppliers, shareholders, the environment, the public and other stakeholders.
 
Adhering to this Code is not optional; it is The Way we do business at Eskom, the Eskom Way.
 
Eskom is also committed to the fight against fraud, corruption, and other forms of economic crime, and irregularities and has established the Fraud Prevention and Whistle Blowing Policies. Eskom adopts a zero-tolerance approach to these activities, irrespective of whether they are committed in or outside the organisation.
 
This commitment promotes a culture that facilitates the disclosure of information relating to criminal and other irregular conduct in the workplace by employees and others in a responsible manner
 
To this end, Eskom adopts a holistic approach to prevent, detect, investigate, and take any appropriate action internally and prosecuting externally, through the justice system, towards acts of fraud, corruption, and other forms of economic crime or irregularities.
 
A system to receive information and act on fraudulent, corrupt and irregular activities from anyone has been established and is being maintained. All information received is treated with strict confidence.
 
For any advice on ethical issues, please contact the Ethics office on 011 800 2725/6324 or ethics@eskom.co.za
 
To report fraud, corruption and irregularities to Eskom’s confidential, whistle-blowing hotline: dial 0800-11-27-22. The line is managed by an independent service provider.
 

Legislation

With effect from 1 July 2002, Eskom was converted from a statutory body into a public company as Eskom Holdings Limited, in terms of the Eskom Conversion Act, 13 of 2001. The two-tier governance structure of the Electricity Council and the Management Board was replaced by a Board of Directors.

The conversion of Eskom provided an ideal opportunity to review Eskom’s existing governance structures and to design a more effective and streamlined decision-making process.

The transition was accomplished smoothly and the conversion, including the creation of new Board committees and the induction of Board members, was carried out efficiently.

The Board is the accounting authority of Eskom in terms of the PFMA.

The Board is responsible for providing strategic direction and leadership, ensuring good corporate governance and ethics, determining policy, agreeing on performance criteria and delegating the detailed planning and implementation of policy to the Executive Management Committee (EXCO).

The Board meets quarterly and monitors management’s compliance with policy and its achievements against objectives. A structured approach is followed for delegation, reporting and accountability, which includes reliance on various Board committees. The chairman guides and monitors the input and contribution of the directors. The Board has approved a Board charter that provides guidance to the directors in discharging their duties and responsibilities.

Compliance, not only with the letter but also with the spirit of relevant governance codes, remains a priority for the organization. As a state owned enterprise, Eskom is guided by the principles of the Code of Corporate Practices and Conduct contained in the King Report on Corporate Governance for South Africa 2002 (King II Report), as well as the Protocol on Corporate Governance in the Public Sector 2002. Furthermore, the statutory duties, responsibilities and liabilities imposed on the directors of Eskom by the Companies Act, 71 of 2008, as amended, are augmented by those contained in the Public Finance Management Act, 1 of 1999, as amended by Act 29 of 1999 (PFMA).

Shareholding

The Government of the Republic of South Africa is the sole shareholder of Eskom. The shareholder representative is the Minister of Public Enterprises.

Shareholder compact

In terms of the Treasury Regulations issued in accordance with the PFMA, Eskom must, in consultation with its executive authority (the Minister of Public Enterprises), annually conclude a shareholder compact documenting the mandated key performance measures and indicators to be attained by Eskom as agreed between the Board of Directors (Board) and the executive authority.

The compact is not intended to interfere in any way with normal company law principles. The relationship between the shareholder and the Board is preserved, as the Board is responsible for ensuring that proper internal controls are in place and that Eskom is effectively managed. The compact serves to promote and encourage good governance practices within Eskom, by assisting to clarify the respective roles and responsibilities of the Board and the shareholder, setting out the circumstances when shareholder approval is required, when the shareholder needs to be consulted, and the remaining areas where the Board is duly empowered to direct the organization.

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