Company Information

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.

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.
Image of STRATEGIC INTENT
For more information please contact the Office of the Group Chief Executive: Strategy Support Division
 
Source:  Eskom Holdings Corporate Plan  FY2025–FY2029 REVISION 14

Legislation

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:

Company Disclosure Information

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Legislation And Authorities

Click here to access the Eskom Conversion Act, 13 of 2001 >>
Click here to access the Handbook for the Appointment of Persons to Boards of State and State Controlled Institutions ​>>
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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 [email protected]
 
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.
 

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​​.