1. Eskom’s Electrification Programme
Energy Portfolio Committee
14th June 2011

2. Background/Introduction
Eskom’s Electrification Programme
Energy White Paper
National Electrification Fund
Implementation Process

3. National Electrification Fund Allocation Principles
INEP (INTERGRATED NATIONAL ELECTRIFICATION PROGRAMM) recommends allocation of funding to NEAC(national electrification advisory committee) based on the following criteria:
Focus on backlog and apply a rural bias
Priorities on Integrated Sustainable Rural Development Strategy (ISRDS) Nodal Zones
Maximize on available infrastructure
Municipal IDP’s (integrated development program)and past performance
Government priorities and initiatives such as Integrated Infrastructure Development

4. National Electrification Fund Process for Allocation of Funding to Provinces
Use same criteria as in NEAC
Adjust programme as per DoE requirements and in line with the change process
Provincial consultation done through:
Provincial IDP/MIG Forums chaired by Provincial Local Govt officials
Provincial Energy Forums [where applicable] and these are chaired by Provincial Local Govt MEC’s
Final funding allocations to Municipalities is based on the approved budget by DoE and are consistent with IDP agreements signed between Eskom and Municipalities

5. Medium Term expenditure Framework Allocation
Previous 6 Years:
R893,165 million for the 2006/7 financial year
R932,083 million for the 2007/8 financial year
R1,058,758 million for the 2008/9 financial year
R1,478 million for 2009/10
R1.769 million for 2010/11
R1,750 million for 2011/12
Annual average of connections has been realised in the past 6 years

6. Number of annual grid connections.
Electrification – There have been two distinct eras of installation: pre-2000 and post-2000
Number of annual grid connections
Thousand
Cost per connection
R '000
13.4
12.4
12.4
11.8
8.7
8.6
9.0
8.1
8.7
7.0
6.3
5.9
6.1
5.0
5.2
6.0
4.5
4.1
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Self-funded and managed programme
Eskom exceeded the government's target of 1.75M connections between and 2000
Connection every 30 seconds, pole every 10 seconds, 200M cable every minute
Connection costs steadily came down
Government funded programme
The numbers of annual connections by Eskom have dropped, partly due to
Increased investment in infrastructure
The stringent processes that need to be followed
Total investment from 1991 – 2011 to date: R7.5 bn

7. Electrification – schools and clinics
The improvement of local infrastructure through strong impact projects is a key corporate social investment priority for Eskom
More than schools electrified since 1991
Close to 400 clinics electrified since 1991

8. Electrification – Still significant backlog of 2. 5 to 2
Electrification – Still significant backlog of 2.5 to 2.9 million households (Eskom’s area of supply)
2.9 million households with no access …
… whereof 70% in proclaimed areas
Number of households without access to electricity1
Millions, 2011
Breakdown of households without access to electricity by area1
%, 2011 Total: 2.5–2.9M
2.9
0.9
Unproclaimed areas
2.0
Proclaimed areas
1. The figure is based on an assumed increase in households without access at a rate of between 2–5% per annum, from 2.3M in 2006. It is also in Eskom’s areas of supply. The certainty in these figures is low and checks will have to be done in the pre-engineering phase
Source: Eskom

9. PROVINCIAL DATA - BBBEE EMPOWERMENT
Province
Sum of BBBEEE
Sum of BWO
Sum of Total Excl VAT
Sum of Total Incl vat
% BBBEEE(Incl Vat)
%BWO(Incl Vat)
Eastern Cape
288,305,177.63
133,161,088.51
421,466,266.14
480,471,543.40
60.00
27.71
Free State
14,511,281.78
3,029,525.16
17,540,806.94
19,996,519.91
72.57
15.15
Gauteng
23,012,863.55
6,079,760.73
29,092,624.28
33,165,591.68
69.39
18.33
KwaZulu-Natal
241,217,970.29
115,066,148.36
356,284,118.65
406,163,895.26
59.39
28.33
Mpumalanga
46,381,138.73
14,244,949.16
60,626,087.89
69,113,740.19
67.11
20.61
North West
48,284,819.75
15,839,908.86
64,124,728.61
73,102,190.62
66.05
21.67
Northern Cape
8,933,990.47
427,947.65
9,361,938.12
10,672,609.46
83.71
4.01
Northern Province
79,138,831.27
32,264,327.47
111,403,158.74
126,999,600.96
62.31
25.41
Western Cape
28,305,644.79
14,312,954.64
42,618,599.43
48,585,203.35
58.26
29.46
Grand Total
778,091,718.26
334,426,610.54
1,112,518,328.80
1,268,270,894.83
61.35
26.37

10. Municipality Assistance - Infrastructure Offerings
Contact Centre Access and/or Setup.
Energy Losses Management
Pricing and Tariff Structure
Technical Skills development e.g. accreditation and authorisation of network operators
The following infrastructure offerings have been identified by Eskom as a broad Framework to cover the overall scope of Business Adopt A Municipality
initiative

11. Municipality Assistance - Infrastructure Offerings
Business and Financial Management Support
Credit and Revenue Management (knowledge sharing)
Technical Standards
Formal Integrated Risk Management Process
Demand Side Management
Maintenance and Operations
Investment , Network and Master Planning

12. THANK YOU !!!