1. 1 ALLOCATIONS for the Integrated National Electrification Programme 2009/10 Presentation to the Select Committee on Finance 25 February 2009

2. 2 CONTENTS Electrification Programme 1.MTEF Allocation 2.Allocation criteria 3.Municipal Allocations 2009/10 4.Connections 2009/10 5.Eskom Allocation 2009/10 6.Connections 2009/10 7.Conclusion and questions Energy Efficiency and Demand Side Management Programme 8. MTEF Allocation 9. Allocation criteria 10. Municipal Allocations 2009/10 11. Connections 2009/10 12. Eskom Allocation 2009/10 13. MW savings 2009/10 14. Conclusion and questions

3. 3 Electricity value chain POWER STATIONS GENERATION TRANSMISSION LINES TRANSMISSION SUBSTATIONS DISTRIBUTION LINES SERVICE CONNECTION RETICULATION HV LINE (11 & 22kV) TRANSMISSION (400/275 kV) RETICULATION LV LINE (380/220V) DISTRIBUTION SUBSTATIONS Electricity is Generated by burning of fossil fuels (coal, oil, or natural gas), use of nuclear technology and hydro capability High Voltage electricity is carried between Generation and required Distribution through Transmission networks (or Transmission grids) The distribution networks collect ‘stepped down’ electricity from the transmission networks and deliver it to Redistributors /End Users DISTRIBUTION (132/33 kV) Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill consumption levels utilised/sold The voltage levels of electricity are further transformed to meet Distribution requirements 1 2 3 MUNICIPALITIES

4. 4 MTEF ALLOCATION VOTED FUNDSMTEF 2009/10 R’000 MTEF 20010/11 R’000 MTEF 20011/12 R’000 MUNICIPALITIES897 008950 8281 007 878 ESKOM(NATIONAL)1 420 7701 649 3091 748 268 ESKOM (BACKLOGS)150 00000 BASELINE ALLOCATION 2 467 7782 600 1372 756 146

5. 5 ALLOCATION CRITERIA FOR 2009/10 –Focus on backlog –Rural bias –Past performance –Project type –Licensed authority capacity –Government priorities

6. 6 CAPITAL EXPENDITURE 2009/10 MUNICIPAL ALLOCATION (Schedule 6) Province2009/10 Allocation (R’000) Year to Date Scheduled Transfers (R’000) Year to Date Actual Transfers (R’000) Eastern Cape 234 30000 Free State 73 45600 Gauteng 97 58000 Kwazulu Natal 123 30300 Limpopo 139 76100 Mpumalanga 98 43600 Northern Cape 28 67500 North West 59 12200 Western Cape 78 32400 Total 932 95700

7. 7 BULK INFRASTRUCTURE – MUNICIPALITIES Province2009/10 Allocation (R’000) Year to Date Scheduled Expenditure (R’000) Eastern Cape 140 0000 Free State 25 7500 Gauteng 66 4150 Kwazulu Natal 12 8500 Limpopo 36 7000 Mpumalanga 53 8570 Northern Cape 20 0000 North West 32 6000 Western Cape 10 8000 Total 398 9730

8. 8 CONNECTIONS Planned Household Connections 2009/10 Province Name Scheduled connections Eastern Cape 11 641 Free State 8 439 Gauteng 2 939 Kwazulu/Natal 19 284 Limpopo 17 473 Mpumalanga 7 135 North West 1 509 Northern Cape 4 709 Western Cape 6 793 Total 79 922

9. 9 ESKOM PROGRAMME

10. 10 Eskom Allocations 2009/10 (Schedule 7) BUDGET TYPE TOTAL 2009/10 CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Schools and Clinics95, 281,045,3400 Households1,382, 427,954,6600 Total1,477,709,000,0000 BUDGET TYPE TOTAL 2009/10 Connections Total Scheduled Connections Total Actual YTD Connections Schools and Clinics49300 Households90,53900 Total91,03200

11. 11 BULK INFRASTRUCTURE - ESKOM Province2009/10 Allocation (R’000) Year to Date Scheduled Expenditure (R’000) Eastern Cape 48 8990 Free State 00 Gauteng 36 9820 Kwazulu Natal 105 2930 Limpopo 16 5300 Mpumalanga 00 Northern Cape 5 1120 North West 10 7760 Western Cape 76 7110 Total 300 3060

12. 12 Planned Household Connections 2009/10 PROVINCE Scheduled Connections Number of Actual Connections EASTERN CAPE22,6250 GAUTENG6,3280 KWAZULU/NATAL18,7380 LIMPOPO13,8540 MPUMALANGA6,8560 NORTH WEST 7,9410 NORTHERN CAPE1,5270 WESTERN CAPE6,8710 FREE STATE5,7990 Grand Total90,5390

13. 13 Eskom Allocation per Province 2009/10 PROVINCE TOTAL CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) EASTERN CAPE357,179,0000 FREE STATE58, 242,0000 GAUTENG112,033,0000 KWAZULU/NATAL396,890,0000 LIMPOPO210,472,0000 MPUMALANGA98,767,0000 NORTH WEST93,697,0000 NORTHERN CAPE22,736,0000 WESTERN CAPE127,693,0000 Grand Total1,477,709,0000

14. 14 Eskom Allocation per Province 2009/10 Schools PROVINCE TOTAL CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Eastern Cape42,070,321,5700 Free State00 Gauteng00 KZN30, 742, 418,0900 Limpopo19,121, 705,8900 Mpumalanga2,522,540,8600 North West824, 058,9300 Northern Cape00 Western Cape00 Grand Total95,281, 045,3400

15. 15 Planned Schools Connections 2009/10 PROVINCE Scheduled Connections Number of Actual Connections EASTERN CAPE226 GAUTENG0 KWAZULU/NATAL137 MPUMALANGA16 LIMPOPO109 NORTH WEST5 NORTHERN CAPE0 Grand Total493

16. 16 Eskom Allocation per Province 2009/10 Backlog Schools and Clinics PROVINCE TOTAL CAPEX Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) Eastern Cape67, 000, 000.0000 Free State000 Gauteng000 KZN83,000,000.0000 Limpopo000 Mpumalanga000 North West000 Northern Cape000 Western Cape000 Grand Total150,000,000.0000

17. 17 The way forward Preparation for the implementation of the 2009/10 Programme (All contracts prepared) Concentrate on Bulk infrastructure development for electrification Maximize the number of schools to be electrified in 2009/10 (Eradicate backlog)

18. 18 Electricity Demand Side Management

19. 19 MTEF ALLOCATIONS VOTED FUNDSMTEF 2009/10 R’000 MTEF 20010/11 R’000 MTEF 20011/12 R’000 MUNICIPALITIES175 000220 000280 000 ESKOM(NATIONAL) 75 000110 000120 000 BASELINE ALLOCATION 250 000330 000400 000

20. 20 Allocation Criteria –Focus on reducing Demand –Urban bias –Project type –Priority to ensure security of supply –Licensed authority capacity –URP –Government priorities

21. 21 Municipal Allocations 2009/10 PROVINCE TOTAL CAPEX R’000 Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) EASTERN CAPE35 00000 FREE STATE4 00000 GAUTENG54 90000 KWAZULU/NATAL24 00000 LIMPOPO3 00000 MPUMALANGA12 10000 NORTH WEST3 00000 NORTHERN CAPE000 WESTERN CAPE39 00000 Grand Total175 00000

22. 22 Eskom Allocations 2009/10 PROVINCE TOTAL CAPEX R’000 Total Scheduled YTD Capex (Including VAT) Total Actual YTD Capex (Including VAT) EASTERN CAPE000 FREE STATE000 GAUTENG75 00000 KWAZULU/NATAL000 LIMPOPO000 MPUMALANGA000 NORTH WEST000 NORTHERN CAPE000 WESTERN CAPE000 Grand Total75 00000

23. 23 Conclusion and questions