Eskom 2010 Readiness: 2010 FWC Parliament 19 May 2010

1. Eskom 2010 Readiness: 2010 FWCParliament19 May 2010

2. Eskom 2010MW Project 14-28 June 09 31 Mar 2010 31 Mar 09 11 May 2010 31 Mar 08 11 June 2010 – 11 July 2010 2007 2010MW Project success means “Ensure a reliable electricity delivery, Eskom preparedness, and mitigation of risks to enable a successful 2010 FIFA World CupTM – South Africa” 2020-01-04 2

3. The Eskom 2010MW Project A dedicated Eskom 2010 Project Team Established in 2007 Audit: Corporate & Technical Project Platforms – Each with its own platform deliverable National Project Office: Information Technology Project Management 2010 Demand Side Management Cross cutting Divisional deliverables identified Finance and Business Support Greening 2010 Marketing & communication incl. stakeholder engagement Risk Management: National Marketing & Communications Regional Technical and Capacity Southern African Power Pool (SAPP) Security and Business Continuity To ensure reliable electricity supply 2010 HR 3 Eskom Holdings Limited Reg. No. 2002/015527/06

4. 2010 and the Electricity supply chain • Event occurs in Winter • Critical installations for the World Cup lie within the host cities and in general outside of Eskom’s supply authority IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION GENERATION Host cities & Key 2010 Installations Within Municipal area ofcontrol SYSTEM OPERATIONS A broad based partnership established with host cities to ensure reliable supply and in dealing with emergencies that may arise during the 2010FWC 4 Eskom Holdings Limited Reg. No. 2002/015527/06

5. Collaborative efforts IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS • A 2010 Electricity Supply Industry Forum (2010 ESI Forum) has been established - Eskom and the Association of Municipal Electricity Undertakings (AMEU) • The forum comprises membership by: • Municipality Electricity Departments • Eskom • NERSA • Department of Energy • 2010 Local Organising Committee • EDI Holdings • National Treasury • Infrastructure and processes put in place as part of the collaborative effort are being tested with simulation exercises between February – May 2010. Results are overwhelmingly positive and any short-comings or oversights are immediately addressed. How is Eskom collaborating with the municipalities and key 2010 sites in terms of contingency and emergency planning? 5 Eskom Holdings Limited Reg. No. 2002/015527/06

6. Contingency planning – The supply side IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS • Contingencies in place: • Primary energy - Fuel: • Coal stockpiles at power stations +42 days vs normal 25 days • On site storage of gas and liquid fuels • Agreements in place with Dept of water affairs on water release for electricity generation purposes including emergencies • Generation Plant: • Expected peak demand of 37.24GW during 2010FWC, with sufficient capacity to supply • Integrated Generation Command Centre to optimise real time production and outages • Additional buffer measures being put in place – SAPP support, Key Industrial Customer load reduction (maintenance/refurbishment), 2010 Power Alert, etc. • What can go wrong on the Supply side? • Fuel supply: • Coal, gas or liquid fuel shortages or water restrictions hamper ability to generate electricity • Generation Plant: • Not enough generators in production plan to meet electricity demand 6 Eskom Holdings Limited Reg. No. 2002/015527/06

7. Southern African Power Pool (SAPP) Pledge to South Africa signed in April 2009 (Maputo) The SAPP agreement demonstrates that the African region is truly contributing towards making 2010 an African World Cup. Unlocking African Potential 7 Eskom Holdings Limited Reg. No. 2002/015527/06

8. Contingency planning – Transporting power IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS • Contingencies in place: • Key 2010 installations identified, Reliability and integrity assessments completed and enhancements in final stages of completion: • Planned preventative maintenance has been completed on critical plant • Networks to 2010 Host cities/Key installations have at least 2 separate supplies, in some cases e.g. City of Johannesburg has more than two supply points, each capable of meeting bulk electricity needs. • Teams have been put on standby to respond to faults and incidents and based on the nature of the fault restore supplies as fast as possible • Strategic spares have been identified and stored at locations as close as practically possible to sites • Emergency preparedness plans are in place and are reviewed and tested on a regular basis to ensure relevance and effectiveness. Current testing use scenarios with a 2010FWC theme. • What can go wrong? • Transmission or distribution line trips due to a fault • Transmission or Distribution sub-station trips due to a fault 8 Eskom Holdings Limited Reg. No. 2002/015527/06

9. Disaster and Emergency preparedness Eskom National Representation on NATJOC Normal operations: Alignment and interaction with Eskom National Situational Awareness Centre (NSAC) Emergencies: Alignment and interaction with Eskom Emergency Response Command Centre (ERCC) IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION National Joint Operations Centre NATJOC National Disaster Management Centre Within Municipal area ofcontrol SYSTEM OPERATIONS How does Eskom align its operations with the National. Provincial and Municipal Joint Operations Centres (JOC’s) as well as Disaster management structures? Provincial Joint Operations Centre PROVJOC Provincial Disaster Management Centre Normal operations: Alignment and interaction with Eskom Regional Situational awareness centres (RSAC) Emergencies: Alignment and interaction with Eskom Regional Joint Command Centres (RJCC) Municipal Joint Operations Centre (JOC) Municipal Disaster Management Centre 9 Eskom Holdings Limited Reg. No. 2002/015527/06

10. Disaster and Emergency preparedness IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS • Prevention: Eskom has established permanent Regional Reliability Teams across the country to integrate Generation, Transmission, Distribution, and Customer Services risks – and address these. • Preparedness: Eskom use exercises at various levels of the organisation in the period leading up to the World Cup including: • A National 2010 Orientation Exercise to ensure that Eskom’s emergency structures are aware of 2010-specific conditions (12 March 2010) • A National 2010 Preparedness Exercise engaging external structures (May 2010) • 2010 Regional Task Team exercises • Regular ongoing testing of Emergency Preparedness Plans (EPP’s) throughout the country – including the activation of Eskom’s emergency structures. How does Eskom prepare itself to prevent and deal with emergencies? 10 Eskom Holdings Limited Reg. No. 2002/015527/06

11. National Exercises – Integrated Response Structures Disaster and Emergency preparedness • A nationwide Eskom Emergency Preparedness Exercise was undertaken on 12 March 2010. The objectives were: • Orientation of Eskom personnel - 2010 FIFA World Cup emergency structures and arrangements. • Input by key personnel to the 2010 Operational Plan - emergency preparedness structures, protocols and information requirements. • The scenario was designed to stress-test Eskoms’ emergency structures for a large-scale security event (a scenario in which these structures have not in the past been applied or tested). • The exercise successfully identified improvements that can be implemented in areas related to integrated structures, situational awareness, and communication flow. The exercise was supported by SAPS (NatJOC/ProvJOC) and Metro observers. • A readiness exercise is planned for May 2010, once national structures have been fully activated. 11

12. Security IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS • Eskom sites classified as national key points: These sites will be secured as per the national key points act. • Known crime hotspots are continuously assessed and secured by dedicated teams focussing on these as well as other potential hot spots • 2010 specific security plans are being rolled out which include: • 2010 FWC National security response structures, processes and resources in place, e.g. Guards and security patrols to protect and patrol various infrastructure. Additional private security contracted in to further strengthen these measures. • 2010 FWC National intelligence gathering structures and processes are in place to assist in early identification of potential threats such that appropriate security counter measures can be instituted • 2010 FWC National collaborative efforts are in place: (NATJOC, NDMC, SAPS, SANDF, etc.) How does Eskom Plan on dealing with security threats and related matters over the 2010 FWC? 12 Eskom Holdings Limited Reg. No. 2002/015527/06

13. Communications IN ESKOM AREA OF CONTROL TRANSMISSION DISTRIBUTION Host cities & Key 2010 Installations GENERATION Within Municipal area ofcontrol SYSTEM OPERATIONS IN ESKOMS AREA OF CONTROL • Normal conditions: • During normal conditions Eskom's communication to key stakeholders and general public is via the following: • Eskom stakeholder management processes • Eskom Group Communication Department (includes the media desk and external communication e.g.. Power Alert, Energy Efficiency campaign) • Eskom website • Emergency Communication • During emergency conditions Eskom's Emergency Communication Centre (ECC) will be established. All communication will emanate from this centre to key stakeholders (GCIS, Media, Government) and the public. • At a strategic level Eskom will establish direct communication with the NATJOC and NDMC via the ERCC Chairman How does Eskom Plan on communicating to the key stakeholders and general public during normal and emergency conditions 13 Eskom Holdings Limited Reg. No. 2002/015527/06

14. Way Forward: Alerts & Critical periods in 2010 Dates and critical periods can be used for planning . Objective is to minimise supply side and network risks over the critical periods – 1 Jun 2010 to 18 Jul 2010 Eskom Holdings Limited Reg. No. 2002/015527/06

15. Way Forward: Timelines, assumptions & activities 2020-01-04 • From 1 April 2010 going into high level alert • Assumption: media and guests begin arriving into SA – equipment arrives and setting up beginning • Final preparations for 2010FWC – Risk Treatment plans enhanced- address and implement actions to treat audit findings • Bi-Weekly tracking of critical deliverables (2010 Operations committee): Fast Track any final infrastructure works • From 1 May 2010 onwards : • Assumptions: Media and teams begin to arrive – final preps • Communication, Security, System Operations and response plans aligned across the supply chain • Risk Treatment activities in place across the supply chain • Initiate implementation of Situational awareness centres: Nationally and Regionally • From 1 June 2010 to 18 July : • “Live operations” • Situational Awareness centres: Go Live • Daily 2010 operations and debriefing sessions • From 19 July 2010 onwards • Assumptions: Teams return to their home countries and Country/Media focuses on debriefs • Begin scaling down and ramping down operations and “normalising” operations • From 25 July 2010 onwards – utilities back to normal operations • BY 31 July 2010 – closeout and debriefs completed. • By 31 Aug 2010 – all 2010 activities closed out and brought to a close 15

16. Conclusion Eskom is ready with the challenging task, of having to manage the country’s power delivery and the management of its assets (the network and people) in an extremely dynamic environment There is a plan of action for the 2010 FWC for security of supply and in dealing with emergencies, and with the collaboration of all the stakeholders in the Electricity Supply Industry and the Emergency/Disaster management structures will ensure its successful event. The actions taken to secure the electrical supplies for the 2010 FIFA World CupTMprovide us with a high level of confidence. 16 Eskom Holdings Limited Reg. No. 2002/015527/06

18. Empowering The South African dream Thank You 18 Eskom Holdings Limited Reg. No. 2002/015527/06