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

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Licensee mandates<br />

Overview of <strong>Multi</strong>-<strong>Year</strong> <strong>Price</strong> <strong>Determination</strong><br />

2013/14–2017/18 (MYPD 3)<br />

Page 142 of 144<br />

A number of cost categories detailed above are incurred in each of the licenced areas. For<br />

example, capital expenditure, operating expenses, depreciation and returns are applicable<br />

for each licenced area. In addition certain unique activities are carried out within each of the<br />

licensee functions. This is summarised below.<br />

Table 56: Licensee mandates<br />

Generation Transmission Distribution<br />

Primary energy Construction of transmission<br />

lines and infrastructure<br />

Power plant construction Maintenance and operations of<br />

Generation plant operations and<br />

maintenance<br />

Generation<br />

transmission infrastructure<br />

System operations and<br />

Independent System and<br />

Market Operator<br />

Construction of distribution<br />

infrastructure<br />

Maintenance and operations of<br />

distribution assets<br />

Import of electricity Customer services<br />

Grid code secretariat<br />

Generation is responsible for providing reliable, available generating capacity with a target<br />

EAF of 90%.<br />

Primary Energy<br />

Primary Energy is responsible for identifying, developing, sourcing, procuring and delivering<br />

the necessary amounts of primary energy (water, coal, sorbent and biomass) of the required<br />

quality to <strong>Eskom</strong>‟s power stations, at the right time and at minimum cost.

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