Question NW2009 to the Minister of Public Enterprises

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30 June 2022 - NW2009

Profile picture: Maotwe, Ms OMC

Maotwe, Ms OMC to ask the Minister of Public Enterprises

(1) What are the details of the agreed upon performance indicators of the (a) Chief Executive Officer and (b) Chief Operating Officer of Eskom; (2) whether he has found that the specified officials are currently performing according to their agreed-upon performance indicators; if not, why not; if so, what are the relevant details?

Reply:

According to the information received from ESKOM

1. The performance indicators for the Group Chief Executive and Chief Operating Officer are agreed to at the beginning of each financial year. These indicators are based on the Shareholders compact / Corporate Scorecard as approved by the shareholder and includes the following key performance areas and key performance indicators:

KPA

FY23 KPI

Unit

FY23

FY24

FY25

Focus on Safety

Lost-time Injury Rate (Employee) (LTIR)1

Rate

0.30 

0.30 

0.30 

Improve Plant Operations 2

Energy Availability Factor (EAF)

%

65

TBC

TBC

 

Post Philosophy Outage UCLF (PPO UCLF)

%

14

TBC

TBC

 

Outage Readiness Indicator (ORI) at T-3

%

80

TBC

TBC

 

Boiler Tube Failure (BTF) rate

No. of failures per unit per year (12mma)

1.8

TBC

TBC

 

Number of days of load reduction (load shedding and/or curtailment)

Days

63

TBC

TBC

Reduce Environmental Footprint in Existing Fleet

Relative Particulate Emissions (Kg/MWh sent out)

Kg/MWh

0.30

0.30

0.28

 

Specific Water Usage –Litres Per Kwh (l/kWh Sent Out)

l/kWh

1.39

1.30

1.25

 

Atmospheric Emission Licences (AEL) Compliance

%

90

91

92

Primary Energy Optimisation3

Migration Of Coal Delivery Volume From Road To Rail

Mt

4.7

7.6

7.6

 

Coal Purchases Rand/Ton % Increase

%

Commercially confidential

Deliver Capital Expansion

Generation Capacity Installed and Commissioned (Commercial Operation)

MW

800

800

800

Improve Plant Operations

System Minutes Lost

Min

3.53 

3.53 

3.53

 

Transmission Lines Installed

Km

140

340

346

 

Transmission Transformers Capacity Installed and Commissioned

MVA

0

1 315

1 500

 

Payment Levels Excluding Soweto Interest

%

95.7

95.7

95.7

 

Distribution Total Energy Losses

%

9.44

9.42

9.56

 

Total Electrification Connections

Number

106 280

105 936

105 000

 

SAIDI

Hours

38.0

38.0

38.0

Ensure Financial Sustainability3

EBITDA

Rm

53 829

68 053

82 805

 

Cash Interest Cover Ratio

Ratio

1.75

2.28

2.04

 

Debt Service Cover Ratio

Ratio

0.73

1.01

0.91

 

Savings From Turnaround Initiatives

Rm

21440

22619

23863

Legal Separation

Business Separation Key Milestones (Gx legal separation)

Date

2022/12/31

 

 

 

Business Separation Key Milestones (Dx legal separation)

Date

2022/12/31

   

Socio-economic Impact: Human Capital

New intake: Learner Artisans

Number

100

100

100

 

New Intake: Learner Engineers

Number

50

50

50

 

New Intake: Learner Technicians

Number

50

50

50

 

New intake: Sector specific

Number

90

90

90

 

Training Expenditure as % of Budgeted Gross Employee Benefit Expense

%

3.75

3.75

3.75

Corporate Social Investment (CSI)

CSI Committed Spend

Rm

131

131,3

137.9

Industrialisation and Localisation

Preferential Procurement

%

80

80

80

 

Local Content

%

80

80

80

 

B-BBEE Score Level

Number

6

4

4

 

Enterprise Development

Rm

5

5

5

 

Supplier Development

Rbn

5

6

7

 

National Industrial Participation Programme

%

100

100

100

 

Research and Development

%

90

95 

95 

Data Analytics

Integrated outage solution platform

%

30

  TBC

 TBC 

 

Improved data quality

%

30

  TBC

 TBC 

 

Plant data actionable insights

%

30

  TBC

 TBC 

 

Enhance self-service capability

%

10

  TBC

 TBC 

 

The key performance areas such as Financial Sustainability and Legal Separation will have higher percentages in the Group Chief Executive compact whereas higher ratings in the Chief Operating Officer compact will be given to operational key performance areas such as improvement of plant performance and primary energy optimalisation.

(2) With all the challenges facing Eskom these officials are performing according to and beyond their agreed performance scorecards. There had been a dramatic improvement in Eskom’s performance with an 85% improvement in earnings before interest, tax and depreciation (ebitda). Eskom has also successfully reduced debt to R396 billion, from a previous high of R440 billion. The actual performance against the shareholders compact can be shared once the Audit is completed.

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