In support of the South African government's commitment to NEPAD, Eskom established a NEPAD team, which was tasked to facilitate the mobilisation of Eskom's resources in order to promote, develop and implement NEPAD related projects in the energy and power sector. Eskom's aspiration for a Pan-African power grid provides guidance for the planning of many of the NEPAD projects. One particular project entails the motivation for Eskom's involvement in the development and implementation of the Southern African regional "power highway” projects. The power highway projects are intended to develop a power transfer capacity within the Southern Africa Development Community (SADC).

The company plays a direct role in buying and selling electricity to countries within the South African Development Community (SADC) such as Zambia, the Democratic Republic of Congo (DRC) and Mozambique. Through the provision of electricity related services, Eskom also has a presence in other African countries, such as Mali and Uganda.

The South African utility co-chairs the NEPAD Business Foundation's (NBF) Energy Working Group, a body that facilitates and encourages the collaboration of business within the various energy spheres. The NEPAD Energy Working Group is responsible for the development and implementation of energy related projects and programmes. This initiative strives to create sustainable development, contribute to the growth of the energy sector and bring considerable economic benefits to communities within Africa. In 2005, Eskom became the first NBF Founding Partner and contributed R1.5million towards the establishment of the organisation.

Dr Steve Lennon, Managing Director of the Corporate Services Division at Eskom, says "Eskom formed a strategic partnership with the NBF as both parties have common objectives in ensuring the sustainability of the broader African society by addressing the critical energy and infrastructural needs of the SADC region and the continent. Furthermore, the NBF provides a forum for identifying business opportunities and a platform for collaborative working relationships with other NBF members that will enable Eskom to overcome current and future challenges within the energy sector. The NBF has, through its member base, played a pivotal role in directing many pertinent requests for information on Eskom's core business from across the continent directly to the energy utility.”

Eskom plays a significant role in accelerating growth in the South African economy by providing a high-quality supply of electricity to satisfy the needs of the country. The company is investing in additional manpower and financial resources that will assist in developing infrastructure capacity in South Africa. South Africa has experienced relatively high economic growth since 1994 and this rise has propelled increase in electricity demand. To assist in meeting increased demand for electricity Eskom is accelerating its infrastructure development project address. The organisation has developed energy saving initiatives (which are incorporated in the Demand Side Management (DSM) programme; as well as the expansion of supply options (such as the return to services programme which includes the revival of three mothballed power stations).

One specific energy saving initiative is the Eskom Solar Water Heating Programme, a project driven by the South African Government in partnership with Eskom, aimed at introducing solar water heating as an effective renewable energy resource. Another campaign encourages consumers to purchase compact fluorescent lamps (CFLs). These lamps consume significantly less electricity than conventional light bulbs. This national programme was initially launched in the Western Cape and more recently in the Northern Province, Gauteng and Free State.

"Eskom also has an internal campaign to reduce energy consumption in all of it's buildings through programmes that strive to save a billion kilowatt hours. For example, within Megawatt Park, all escalators are turned off during off-peak working hours and about 95% of the lights (the remainder being emergency lights) are turned off at 19.00 every evening "says Lennon.

Eskom is conscious of the role that the South African youth can play in creating awareness about the importance of using energy efficiently. To this extent the organisation is in the process of rolling out educational campaigns to schools throughout South Africa and is a core sponsor for the Eskom Expo for Young Scientists. "The Expo is a vehicle to transfer messages about the importance of energy conservation to all youth throughout the country.” Says Lennon.

As the South African economy continues to grow and the demand for electricity increases, Eskom will have to intensify its efforts in upgrading and building new infrastructure. In order for Eskom to finance these projects, the cost of electricity will need to increase drastically over the next five years. It is for this reason that consumers are encouraged to change the way they use electricity, and to contribute to the effort of providing energy as a vital resource for the ongoing development of the country's economy.

ABOUT ESKOM

Eskom is South Africa's vertically integrated (generation, transmission and distribution) electricity utility. Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors. Additional power stations and major power lines are being built to meet rising electricity demand in South Africa. Since the programme started in 2005, additional capacity of 2 582MW has been commissioned. The approved capacity expansion budget is R343 billion (in nominal terms) up to 2013.

Eskom buys electricity from and sells electricity to the countries of the Southern African Development Community (SADC). The future involvement in markets outside South Africa (that is SADC, African countries connected to the South African grid and the rest of Africa) is limited to those projects that have a direct impact on ensuring security of supply for South Africa.

Eskom is regulated under licences granted by the National Energy Regulator of South Africa (Nersa), originally under the Electricity Act (41 of 1987) – to be replaced by licences under the Electricity Regulation Act (4 of 2006) – and by the National Nuclear Regulator in terms of the National Nuclear Regulatory Act (47 of 1999).

The Eskom Enterprises (Pty) Limited group focuses mainly on activities that support its holding company and is also responsible for all non-core businesses. It supports Eskom by providing plant life-cycle support and plant maintenance, including return-toservice work, and supports the build programme for all the line divisions. It is also in the process of disposing of a number of non-core businesses, including its investment in arivia.kom. At the end of the past financial year, Eskom Enterprises disposed of Mountain Kingdom Communications (Pty) Limited (MKC), the telecommunications provider in Lesotho.

The core businesses of subsidiaries, Eskom Finance Company (Pty) Limited, Escap Limited and Gallium Insurance Company Limited include the granting of employee home loans and the management and insurance of business risk. R1,95 billion (82%) of the mortgage book of Eskom Finance Company has been securitised, (2007: R1,6 billion representing 68%). The planned disposal of this company is expected to be finalised in the 2009 financial year. Eskom's corporate social investment is channelled principally through the Eskom Development Foundation, a section 21 company.

Eskom's head office is in Johannesburg and its operations are focused on South Africa. The Eskom Enterprises group operates electricity generation concessions in Mali, Zambia and Uganda. Other than South Africa, Eskom Enterprises also has subsidiaries in various African countries, with offices in Uganda, Mali, Zambia and, up until the disposal of MKC, in Lesotho

ABOUT THE NEPAD BUSINESS FOUNDATION

The NEPAD Business Foundation (NBF) represents companies seeking an opportunity to explore networking and business development in Africa and sub-saharan Africa, and has a prestigious membership base. The NBF encourages business development in all industry sectors and hosts regular cross-sectoral meetings to facilitate trade between all realms of business. The organisation is endorsed by the NEPAD Secretariat and aims to bring about economic development and skills development through flagship programmes such as the internationally acclaimed educational programme, the African Leadership Programme (ALP). The NBF's Business Guide, launched at the 2007 Africa World Economic Forum and the NBF's Project Management Office are two key resources again that help deliver the NBF's overall objectives by facilitating platforms to encourage trade and development at a regional, continental and global level.