Online Vending Contracts 2009 - 2012 EXCOPS

Introduction Prepayment customer base is currently around 3.6 million and it is growing at a rate of approximately 10% per annum. In order to sustain good service delivery, it is imperative for Eskom to adopt a ‘Prepaid Electricity Vending Strategy’ that responds to customer needs and business challenges… ‘Online Vending’ brings convenience to customers by enabling the customers to purchase electricity via ATMs, cellular phones, internet, vouchers, scratch cards and swipe machines at retail stores. It provides customers with more channels to purchase electricity whilst assisting Eskom to meet the service regulatory requirements of NRS047.

Key Change Drivers To comply with the requirements of NERSA - (NRS047): vending station every 2000 customers, and within every 5km radius To significantly increase current vending footprint improve convenience and introduce various purchase channels To tighten management controls in the prepaid environment centralise management of transactions and customer data To reduce opportunities for fraud automate transaction uploads and phase out Credit Dispensing Units (CDUs) To improve vending efficiencies Centralised management of security modules and that of vending business logic

Migration to Online Vending Operations Eskom Walk-In Centres Phase 1 +/ 1600 Off-line Vending Agents Phase 2 + Not real time Phase 3 Retail Chain Stores ATM’s Phase 4 Internet Real time Online Vending will enable Eskom to grow the approximate 1,500 CDU’s in operation at the moment to more than 10,000 within the foreseeable future. This will include additional footprint via the EasyPay network to more retail stores around the country. Eskom is currently piloting vending via ATM’s as well. Cellphone vending was demonstrated to Eskom as well by one of the service providers, and at this stage EBSST token vending is already possible. As soon as the switching of funds between accounts have been sorted out, it is envisage that normal vending will become the norm where a SMS is send from a cellphone and a token received back, all in the comfort of the customer’s own house. Contact Centres Merchants Increased National Footprint via various point of sale devices /channels Prepaid Electricity Tokens used be sold from Eskom Walk-In Centres before +/- 1600 Offline Vending Agents were appointed in the communities that Eskom is supplying directly. EasyPay pay points and vending outlets (Retail Stores, Service Stations Banks etc) were later added to increase the options and expand the national footprint. The current phase is that of implementing Online Vending and thus deploying multitudes of new virtual channels