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Eskom: Statement by Eskom, on the alleged leaked document (21/04/2010)

21st April 2010

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Eskom would like to place on record that the so-called secret dossier that was leaked to the Democratic Alliance is an internal monthly business report which the company uses to track progress on its projects.

Whilst we accept that we need to be transparent, the disclosure of confidential information in this manner is irresponsible and could be prejudicial to third parties.

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Eskom has previously communicated that it is in the process of reviewing the contracts it has entered into with BHP Billiton and Anglo American plc. Eskom and BHP Billiton have agreed to amend their current long-term pricing agreements for the supply of power to BHP Billiton's Mozal smelter in Mozambique and their Hillside and Bayside smelters in South Africa. Motraco is a company owned by the electricity utilities of South Africa, Swaziland and Mozambique. It owns the transmission network assets that supply electricity to the Mozal smelter in Mozambique. Eskom has back-to-back supply agreement with Motraco and Mozal. This means that what Eskom charges Motraco, Motraco charges Mozal.

Anglo American is one of Eskom's large customers and the major part of their supply is on the standard tariff (Megaflex). However, the negotiated pricing agreement is with their Skorpion (zinc) mine in Namibia. Eskom and Anglo American have committed to re-engage before the end of April 2010.

The information on the operational expenditure and pricing, as outlined in the report, is aligned to the information has been shared with the National Energy Regulator of SA (Nersa).

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