Performance of the Integrated National Electrification Programme as at 30 June 2008 (4 rd Quarter) Presentation to the Select Committee on Finance 14 August 2008

CONTENTS Background Municipal Programme 2007/8 Allocation/Expenditure Connections Eskom Programme 2007/8 Allocation/ Expenditure Connections Challenges & Recommendations End (Questions)

Electricity value chain POWER STATIONS GENERATION TRANSMISSION LINES TRANSMISSION SUBSTATIONS DISTRIBUTION LINES SERVICE CONNECTION RETICULATION HV LINE (11 & 22kV) TRANSMISSION (400/275 kV) RETICULATION LV LINE (380/220V) DISTRIBUTION SUBSTATIONS Electricity is Generated by burning of fossil fuels (coal, oil, or natural gas), use of nuclear technology and hydro capability High Voltage electricity is carried between Generation and required Distribution through Transmission networks (or Transmission grids) The distribution networks collect ‘stepped down’ electricity from the transmission networks and deliver it to Redistributors /End Users DISTRIBUTION (132/33 kV) Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill consumption levels utilised/sold The voltage levels of electricity are further transformed to meet Distribution requirements MUNICIPALITIES

Electrification outputs Project life cycle Construction for backbone infrastructure Poles Cables MV and LV Household connection Pre-Engineering and Detailed design 15% 80 % 5% StartFinish

Electrification outputs Project life cycle Household connection Pre-Engineering and Detailed design 15% 80 % 5% StartFinish Construction for backbone infrastructure Poles Cables MV and LV

MUNICIPAL PROGRAMME (SCHEDULE 6)

CAPITAL EXPENDITURE 2007/8 CAPITAL EXPENDITURE Government Financial Year June 2008 Province2007/8 Revised Allocation (R’000) Year to Date Scheduled Transfers (R’000) Year to Date Actual Transfers (R’000) Year to Date Expenditure (Including Top-up Funding) (R’000) % Funds transferred vs. Original Allocation % Expenditure to date vs. Funds Transferred Eastern Cape 86,243 87,120100%101% Free State 46,621 42,62148,006100%112% Gauteng 93,006 56,383100%60% Kwazulu Natal 80,638 80,20597%99% Limpopo 47,299 46,16441,747100%90% Mpumalanga 35,272 17,158100%48% Northern Cape 6,237 7,073100%113% North West 34,070 31,67027,95692%88% Western Cape 38,441 38,442100% Total 467, ,292404,09098%87%

CONNECTIONS Summary of Household Connections 2007/08 June 2008 Province Name Revised connections Year to date Actual % Achieved Eastern Cape 6,6974,88773% Free State 6,3666,05195% Gauteng 17,2057,80345% Kwazulu/Natal 15,22614,44694% Limpopo 8,2174,94460% Mpumalanga 3, % North West 2, % Northern Cape 1, % Western Cape 4,8023,79279% Total 65,16543,04366%

ESKOM PROGRAMME (SCHEDULE 7)

Eskom Total Programme Allocations 2007/8 and Performance as at March 2008 BUDGET TYPE TOTAL Year End 2007/8 CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Actual YTD Percentage Completion against Year End Target Schools and Clinics49,727, ,116, % Households923,355, ,987, % Total973,083, ,007,104, % BUDGET TYPE TOTAL Year End 2007/8 Connections Total Scheduled YTD Connections Total Actual YTD Connections Actual YTD Percentage Completion against Year End Target Schools and Clinics % Households120, , % Total120, , %

Eskom Total Allocation per Province 2007/08 and Performance as at March 2008 PROVINCE TOTAL Year End CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Actual YTD Percentage Completion against Year End Target EASTERN CAPE269,408, ,597, % FREE STATE13,478, ,666, % GAUTENG41,758, ,872, ,588, % KWAZULU/NATAL293,309, ,145, % LIMPOPO139,669, ,258, % MPUMALANGA86,502, ,028, ,661, % NORTH WEST86,676, ,516, % NORTHERN CAPE16,568, ,928, ,372, % WESTERN CAPE25,710, ,296, % Grand Total973,083, ,007,104, %

Eskom Total Allocation per Province 2007/08 and Performance as at March 2008 PROVINCE TOTAL Year End 2007/8 Connections Total Scheduled YTD Connections Total Actual YTD Connections Actual YTD Percentage Completion against Year End Target EASTERN CAPE28,544 28, % FREE STATE2,666 2, % GAUTENG7,556 12, % KWAZULU/NATAL26,031 23, % LIMPOPO28,794 29, % MPUMALANGA8,057 5, % NORTH WEST11,816 11, % NORTHERN CAPE3,234 3, % WESTERN CAPE3,919 4, % Grand Total120, , %

Eskom Expenditure 2007/08 Households PROVINCE TOTAL YEAR END CAPEX INCLUDING VAT TOTAL SCHEDULED YTD CAPEX (Including VAT) TOTAL ACTUAL YTD CAPEX (Including VAT) Actual YTD Percentage Completion against Year End Target EASTERN CAPE250,076, ,529, % FREE STATE12,369, ,172, % GAUTENG41,758, ,588, % KWAZULU/NATAL277,771, ,819, % LIMPOPO126,354, ,340, % MPUMALANGA86,319, ,042, % NORTH WEST86,676, ,514, % NORTHERN CAPE16,317, ,317, % WESTERN CAPE25,710, ,663, % Grand Total923,355, ,987, %

Eskom Connections 2007/08 Households PROVINCE TOTAL YEAR END CONNECTIONS TOTAL SCHEDULED YTD CONNECTIONS TOTAL ACTUAL YTD CONNECTIONS Actual YTD Percentage Completion against Year End Target EASTERN CAPE28,445 28, % FREE STATE2,636 2, % GAUTENG7,556 12, % KWAZULU/NATAL25,825 23, % LIMPOPO28,648 29, % MPUMALANGA8,055 5, % NORTH WEST11,816 11, % NORTHERN CAPE3,233 3, % WESTERN CAPE3,919 4, % Grand Total120, , %

Eskom Expenditure 2007/08 Schools and Clinics PROVINCE TOTAL Year End 2007/8 CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Actual YTD Percentage Completion against Year End Target EASTERN CAPE19,331, ,068, % FREE STATE1,109, ,494, % KWAZULU/NATAL15,537, ,326, % LIMPOPO13,315, ,918, % MPUMALANGA182, ,619, % NORTH WEST0.00 1, % NORTHERN CAPE250, , % WESTERN CAPE0.00 2,633, % Grand Total49,727, ,116, %

Eskom Connections 2007/08 Schools and Clinics PROVINCE TOTAL Year End 2007/8 Connections Total Number of Scheduled YTD Connections Total Number of Actual YTD Connections Actual YTD Percentage Completion against Year End Target EASTERN CAPE % FREE STATE % KWAZULU/NATAL % LIMPOPO % MPUMALANGA % NORTH WEST0000% NORTHERN CAPE % WESTERN CAPE0010% Grand Total %

Eskom Expenditure 2007/8 Special Clinics PROVINCE TOTAL Year End 2007/8 CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Actual YTD Percentage Completion against Year End Target EASTERN CAPE41,858, ,775, % GAUTENG51, , % KWAZULU/NATAL1,220, , % LIMPOPO1,292, , % NORTH WEST428, , % NORTHERN CAPE150, , % Grand Total45,000, ,284, %

Eskom Connections 2007/8 Special Clinics PROVINCE TOTAL Year End 2007/8 Connections Total Number of Scheduled YTD Connections Total Number of Actual YTD Connections Actual YTD Percentage Completion against Year End Target EASTERN CAPE % GAUTENG % KWAZULU/NATAL % LIMPOPO % NORTH WEST % NORTHERN CAPE003100% Grand Total %

Total Connections Name Revised connections Year to date Actual % Achieved Municipalities 65,16543,04366% Eskom Households 120,133122,754102% Schools & Clinics % Special Clinics % Total 185,918166,40089%

CHALLENGES Municipalities currently finalising or executing 2005/6 2006/7 and 2007/8 projects. The need to built bulk infrastructure to enable connections Execution capacity challenges at municipalities (Contractors, Consultants etc) Shortage of material for construction (Poles, Transformers etc) Topography, housing densities, Dependencies on bulk infrastructure, especially in Mpumalanga, Eastern Cape and Kwa-Zulu Natal

Recommendation Focus on the completion of the 2007/8 Programme Concentrate on infrastructure development for electrification Maximize the number of schools to be electrified in 2008/9 Preparation for the finalization of the 2009/10 Programme Intensify the Municipal assistance programme using retired Engineers

THANK YOU