NOTES TO THE FINANCIAL STATEMENTS - NOTE 6


 

    2014   2013  
    Cost     Accumulated
depreciation
and
impairment
losses
    Carrying
value
    Cost     Accumulated
depreciation
and
impairment
losses
    Carrying
value
 
    Rm     Rm     Rm     Rm     Rm     Rm  
6. Property, plant and equipment                                  
  Group                                  
  Owned assets                                  
  Land 1 698         1 698     1 587         1 587  
  Buildings and facilities 5 645     (1 376)     4 269     4 942     (1 245)     3 697  
  Plant – Generation 133 722     (47 627)     86 095     124 784     (45 580)     79 204  
 
  – Transmission
34 404     (9 420)     24 984     29 032     (8 467)     20 565  
 
  – Distribution
78 270     (29 183)     49 087     70 080     (26 347)     43 733  
 
  Regular distribution
56 775     (19 133)     37 642     50 935     (16 996)     33 939  
 
  Electrification
21 495     (10 050)     11 445     19 145     (9 351)     9 794  
 
          – Test, telecommunication and other plant
2 141     (1 112)     1 029     1 818     (1 066)     752  
  Equipment and vehicles 12 524     (7 162)     5 362     11 327     (6 320)     5 007  
  Total in commission 268 404     (95 880)     172 524     243 570     (89 025)     154 545  
  Works under construction 228 692     (40)     228 652     186 675     (1)     186 674  
    497 096     (95 920)     401 176     430 245     (89 026)     341 219  
  Leased assets 573     (376)     197     573     (363)     210  
  Mining assets1 573     (376)     197     573     (363)     210  
    497 669     (96 296)     401 373     430 818     (89 389)     341 429  
  Company                                  
  Owned assets                                  
  Land 1 669         1 669     1 559         1 559  
  Buildings and facilities 5 481     (1 295)     4 186     4 787     (1 173)     3 614  
  Plant – Generation 134 714     (47 921)     86 793     125 166     (45 776)     79 390  
 
  – Transmission
34 459     (9 440)     25 019     29 044     (8 469)     20 575  
 
  – Distribution
78 447     (29 327)     49 120     70 147     (26 356)     43 791  
 
  Regular distribution
56 941     (19 145)     37 796     50 999     (17 005)     33 994  
 
  Electrification
21 506     (10 182)     11 324     19 148     (9 351)     9 797  
 
  – Test, telecommunication and other plant
425     (382)     43     427     (377)     50  
  Equipment and vehicles 10 472     (6 057)     4 415     9 060     (5 201)     3 859  
  Total in commission 265 667     (94 422)     171 245     240 190     (87 352)     152 838  
  Works under construction 230 481     (40)     230 441     188 374     (1)     188 373  
    496 148     (94 462)     401 686     428 564     (87 353)     341 211  
  Leased assets 1 033     (512)     521     1 032     (471)     561  
  Mining assets1 573     (376)     197     573     (363)     210  
  Plant 54     (34)     20     54     (31)     23  
  Equipment and vehicles 406     (102)     304     405     (77)     328  
                                     
    497 181     (94 974)     402 207     429 596     (87 824)     341 772  

    Owned assets     Leased assets        
  Reconciliation of movements Land   Buildings
and
facilities
  Plant   Equipment
and
vehicles
  Works
under
construction
    Mining
assets
  Plant   Equipment
and
vehicles
    Total  
  2014 Rm   Rm   Rm   Rm   Rm     Rm   Rm   Rm     Rm  
  Group                                        
  Carrying value at beginning of the year 1 587   3 697   144 254   5 007   186 674     210         341 429  
  Additions2 112   128   2 130   1 581   67 742             71 693  
  Transfers3   586   25 035   103   (25 724)              
  Transfers to non-current assets held-for-sale       (30)               (30)  
  Change in discount rate of decommissioning provision and cost estimate     181                 181  
  Disposals (1)   (5)   (161)   (40)               (207)  
  Impairment losses       (5)   (41)             (46)  
  Reversal of impairment losses         1             1  
  Depreciation   (137)   (10 244)   (1 254)       (13)         (11 648)  
  Carrying value at end of the year 1 698   4 269   161 195   5 362   228 652     197         401 373  
  Company                                        
  Carrying value at beginning of the year 1 559   3 614   143 806   3 859   188 373     210   23   328     341 772  
  Additions2 111   127   2 733   1 614   67 628         1     72 214  
  Transfers3   578   24 842   101   (25 521)              
  Change in discount rate of decommissioning provision and cost estimate     181                 181  
  Disposals (1)   (5)   (155)   (38)               (199)  
  Impairment losses         (40)             (40)  
  Reversal of impairment losses         1             1  
  Depreciation   (128)   (10 432)   (1 121)       (13)   (3)   (25)     (11 722)  
  Carrying value at end of the year 1 669   4 186   160 975   4 415   230 441     197   20   304     402 207  

 
1. Mining assets include various long-term coal contracts whereby Eskom purchases all of the coal from specified mines. Eskom pays a fixed standing charge to cover the capital cost.
2. Included in additions are borrowing costs capitalised of R13 290 million (2013: R3 678 million) for the group and company.
3. Amounts are transferred from work under construction to the relevant asset class when the asset is available for use.

        Group     Company  
    Note   2014
Rm
    2013
Rm
    2014
Rm
    2013
Rm
 
  Borrowing costs on general borrowings are capitalised at an average rate of 9.57% (2013: 9.85%). Borrowing costs on funds borrowed specifically for the purpose of obtaining a qualifying asset are capitalised at the actual rate obtained for the specific funds borrowed. The average specific rate excluding the government loan for the year was 7.75% (2013: 7.85%). The amounts capitalised during the year were: 41   13 290     3 678     13 290     3 678  
  Details of land and buildings are available for examination at the registered offices of the respective businesses.                          
  Leased assets include arrangements that contain finance leases in terms of IFRIC4 Determining whether an arrangement contains a lease.                          
  None of the assets are encumbered or held as security.                          
  The total depreciation charge for property, plant and equipment is disclosed in profit or loss in the following categories:     11 648     9 816     11 722     9 697  
  Depreciation and amortisation expense 35   11 635     9 803     11 709     9 684  
  Primary energy     13     13     13     13