Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
APPENDIX A: LICENCED ACTIVITIES
Page 139 of 144
This appendix provides background information on Eskom and Eskom‟s licenced activities
and shows how all the cost drivers referred to above fit into the various licenced activities.
Purpose
Eskom‟s purpose is to provide sustainable electricity solutions to grow the economy and
improve the quality of life of people in South Africa and in the region.
Nature of business and client base
Eskom is South Africa‟s primary electricity supplier. The company – which is wholly owned
by the South African government – generates, transmits and distributes electricity to
industrial, mining, commercial, agricultural and residential customers, and to 187
municipalities, which in turn redistribute electricity to businesses and households.
Figure 21: Eskom’s value chain
Eskom sells electricity directly to about 3 000 industrial customers, 1 000 mining customers,
50 000 commercial customers and 84 000 agricultural customers. It also supplies electricity
to more than 4.7 million residential customers – many of whom are in rural areas – who
account for about 40% of all residential customers in the country.