Eskom's legal and operating structure

Eskom’s legal structure

Eskom’s head office is in Johannesburg, while it has operations across South Africa. It maintains a small office in London, primarily for quality control of the equipment being manufactured for the capacity expansion programme.

The Eskom group consists of the Eskom business and a number of subsidiaries, including:

The Eskom Enterprises SOC Limited group. Through the Rotek and Roshcon entities, Eskom Enterprises provides life-cycle support, plant maintenance, network protection and support for the capacity expansion programme for Eskom’s line divisions. These entities support Eskom’s strategic objective of “Becoming a high-performance organisation” as well as the “Leading and partnering to keep the lights on” objective. There is also a subsidiary with an interest in electricity operations and maintenance concessions in Uganda. Another subsidiary, Eskom Energie Manantali s.a (EEM), operates an operating and maintenance concession with Société de Gestion de l’Energie de Manantali (SOGEM). A mediation process to reach agreement on a 10-year operating and maintenance contract was not as successful as intended, with some major issues that could potentially expose EEM to undue risk remaining unresolved. Exit options are thus being pursued. As a result, EEM has been classified as a discontinued operation in Eskom’s March 2014 financial statements
Eskom Finance Company SOC Limited was established in 1990 primarily to enable Eskom’s employees to have access to home loan finance whilst optimising home ownership costs to both Eskom and its employees. Eskom is in the process of finding an appropriate disposal solution for this subsidiary on request of the shareholder, however, as it currently does not meet the requirements as stated in the International Financial Reporting Standards (IFRS), it has not been classified as a discontinued operation in Eskom’s financial statements
Escap SOC Limited, Eskom’s wholly owned insurance captive company, manages and insures the business risk of Eskom and its subsidiaries, excluding nuclear and aviation liabilities
The Eskom Development Foundation NPC is a wholly owned non-profit company that manages Eskom’s corporate social investment in support of Eskom’s “Transformation” objective

Eskom’s operating structure

Eskom’s operating structure, depicted below, comprises line functions that operate the business, service functions that service the operations and strategic functions that develop the enterprise.

Eskom’s operating structure