Eskom mandate, vision and mission

Eskom Holdings SOC Ltd is a state-owned corporation (SOC) as defined by the Companies Act 71 of 2008. It is entirely owned by the South African government, with the Minister of Electricity and Energy serving as the Shareholder representative. Eskom operates across the electricity value chain, providing generation, transmission, and distribution services within South Africa, and participates in electricity trading within the Southern African Development Community (SADC).

Eskom has a dual mandate to drive both commercial and socio-economic objectives. This ensures that the company remains reliable and financially sustainable while contributing to the growth of the South African economy and transitioning responsibly to a lower-carbon future. The mandate is set out in the Memorandum of Incorporation (MOI) which is provided by the Eskom Board and accepted by the Shareholder. The
vision and mission were developed to support Eskom’s mandate. The four Strategic Objectives of Eskom have been developed to achieve the
mandate, vision, and mission in alignment with the five strategic priorities defined by the Shareholder.

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.

The electricity is generated by 30 power stations with a total nominal capacity of ~47GW. The electricity is then transmitted over a ~33 328km transmission network which balances the supply and demand in real-time and maintains 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 generated in Africa. Eskom’s footprint and asset base are shown in the figure below.

Operating structure

Following South Africa’s democratic elections in May 2024, the seventh administration introduced significant structural reforms including the establishment of the Department of Electricity and Energy (DEE). With this reorganisation, state-owned enterprises previously under the
Department of Public Enterprises (DPE) were reassigned to relevant line-function ministries, which now hold full Shareholder responsibility.
As a result, the Minister of Electricity and Energy assumed the role of the Shareholder representative for Eskom. As a Shareholder Ministry, the DEE outlines the expectations from the government, oversees performance and sets energy policy. Key documents such as 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 Eskom’s activities, including tariff determination and approval, while the National Nuclear Regulator (NRR) oversees nuclear safety at Koeberg. Eskom is also subject to oversight or regulation by several other government departments (e.g., National Treasury (NT), Department of Planning, Monitoring and Evaluation, Department of Forestry, Fisheries, and the Environment (DFFE)), and Parliamentary committees.

The figure below provides Eskom’s high-level organisational and regulatory structure.

Source: Eskom Holdings Corporate Plan FY2026–FY2030 REVISION 15

Governance Framework

The Eskom Group comprises the operating company with its subsidiaries and joint ventures. As a public entity, Eskom is governed by the
provisions of the Public Finance Management Act 1 of 1999 (PFMA). Under the PFMA, Eskom must conclude an annual Shareholder’s
Compact (SHC) with the shareholder, which tracks the key performance indicators (KPIs) that support Eskom’s mandate, and the strategic
objectives provided in the strategic intent statement (SIS). In addition, the PFMA requires that the company submit a Corporate Plan (CP) 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 and guides the way Eskom does business, is set out in the figure below.

Company Disclosure Information

Certificate of Incorporation

COR39: Director Amendments – June 2024

Memorandum of Incorporation

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NOTICE IN TERMS OF SECTION 15 OF PAIA – VOLUNTARY DISCLOSURES AND AUTOMATIC AVAILABILITY OF CERTAIN RECORDS

Other related company information can be accessed by logging a request with the Office of the Company Secretary.

Legislation And Authorities

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.

>> Click here to access the Eskom Conflict of Interest policy

>> Click here to access the Eskom Conflict of Interest Register 1 April 2024 to 24 March 2025

>> Click here to access the Code of Ethics “The Way” policy