DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 521
DATE OF PUBLICATION: 05 March 2010
Mr P van Dalen (DA) to ask the Minister of Public Enterprises:
(1) (a) Who are Eskom's top 100 customers, (b) what (i) are their type of business, (ii) is their tariff and (iii) is their average annual consumption and (c) what was each of their average percentage use of total available electricity, for each of the past five financial years up to the latest specified date for which information is available;
(2) whether any of these companies have contracts with Eskom; if not, why not; if so, (a) what are the details of their contracts and (b) what is the (i) inception and (ii) end dates of each of their contracts;
(3) whether Eskom is reviewing any of these contracts; if not, why not; if so, what are the details including the proposed tariff;
(4) whether any of these companies have been investigated for anti-competitive behaviour and/or price fixing; if not, why not; if so, what are the relevant details;
(5) what are each of these company's contribution to the fiscus and as a percentage of the gross domestic product (GDP)? NW635E
REPLY
(1)(a) A list of Eskom's Top 100 South African customers by consumption is attached as Annexure 1.
(b)(i) Eskom's Top 100 customers comprise mainly of industrial and mining companies.
(1)(b)(ii-iii)(c) At present it is not possible to provide the information requested on an individual basis as the information requested relates to confidential commercial information or other proprietary information of third parties and can therefore not be disclosed publicly at this stage. We are addressing this matter in order to allow for transparency whilst ensuring compliance with the legal obligations of our state-owned enterprises with due regard to the Constitutional framework that promotes the right of Access to Information and which also safeguards private or commercially sensitive information. As stated publicly before,
Government is addressing all issues of transparency on all contracts as it is cognizant of the significant interests of the public as well as that of private third parties.
The total annual consumption of Eskom's 146 Key Industrial Customers (KICs) for the period 1 April 2008 to 31 March 2009 was 83 388 GWh, or 39 % of Eskom's total sales.
KICs have made up around 40% of Eskom's total annual sales for the past few years. Save for two customers who have long term pricing contracts, all Eskom's customers in South Africa are supplied at one of the standard Eskom Retail Tariffs as approved by the National Energy Regulator of South Africa (NERSA). Most of Eskom's Top 100 customers are supplied at the NERSA approved Megaflex standard retail tariff (see Annexure 2).
(2) Yes, all these customers have supply agreements with Eskom. Generally, the standard terms and conditions of Eskom's supply agreements are applicable and the period is ongoing unless termination provisions come into being. It is not possible to provide details of specific individual contracts at this stage. As stated above, Government is addressing all issues of transparency on all contracts as it is cognisant of the significant interests of the public as well as that of private third parties.
However, it is important to note that there are special pricing arrangements that were initially concluded prior to the 1994 democratic elections (1992). At that time, the electricity regulatory, supply, and pricing landscape looked different. Eskom had excess capacity and the cost of electricity supply was much lower.
(3) Eskom is not in the process of reviewing its standard terms and conditions of supply. The schedule of standard retail tariffs is, however amended from time to time with the approval of NERSA and subject to annual increases as determined by NERSA. Save for of two customers that are on long term pricing agreements, all KICs are on one of the NERSA approved standard retail tariffs. Eskom and BHP Billiton (one of the customers on a long term pricing agreement) have recently agreed to amend their current long-term Negotiated Pricing Agreements (NPAs) for the supply of power to BHP Billiton's Mozal smelter in Mozambique and its Hillside and Bayside smelters in South Africa, and it is envisaged that negotiations will be concluded soon. Eskom is also in the process of negotiating with Anglo American to revise its NPA (SkorpionZinc).
(4) This question should be directed to the Competition Commission.
(5) We are unable to supply detailed information on each company's contribution to the fiscus at this stage however, the general contribution of Eskom's key industrial customers to the economy, among others, includes the following:
a) Employment creation (direct and indirect through downstream and knock-on effects);
b) Export proceeds;
c) Investment (particularly in instances of robust growth);
Company tax contribution to the fiscus - i.e. national revenue; and
d) Value addition through beneficiation processes.
ANNEXURE 1 FOR PQ 521: LIST OF THE 100 KEY INDUSTRIAL CUSTOMERS
1 Afrisam (Pty) Ltd - Dudfield
2 Afrisam (Pty) Ltd - Ulco
3 Air Products SA (Pty) Ltd - Newcastle
4 Air Products SA (Pty) Ltd - Vanderbijlpark
5 Anglo Coal Ltd - Goedehoop Colliery
6 Anglo Coal Ltd - Goedehoop Colliery
7 Anglo Coal Ltd - Goedehoop Colliery
8 Anglo Coal Ltd - Goedehoop Colliery
9 Anglo Coal Ltd - Goedehoop Colliery
10 Anglo Coal Ltd - Kleinkopje
11 Anglo Coal Ltd - Kleinkopje
12 Anglo Coal Ltd - New Vaal Collieries
13 Anglo Gold Ashanti - Vaal River
14 Anglo Gold Ashanti - West Wits
15 Anglo Platinum Ltd - Amandelbult
16 Anglo Platinum Ltd - Bafokeng Rasimone
17 Anglo Platinum Ltd - Lebowa Platinum
18 Anglo Platinum Ltd - Modikwa
19 Anglo Platinum Ltd - Mototolo Concentratore Rustenburg
20 Anglo Platinum Ltd - PPRust North
21 Anglo Platinum Ltd - RPM Polokwane
22 Anglo Platinum Ltd - Rustenburg Section
23 Anglo Platinum Ltd - Union
24 Aquarius Platinum SA (Pty) Ltd - Everest
25 Aquarius Platinum SA (Pty) Ltd - Kroondal
26 Aquarius Platinum SA (Pty) Ltd - Marikana Platinum
27 ArcelorMittal Steel SA - Newcastle
28 ArcelorMittal Steel SA - Saldanha Steel
29 ArcelorMittal Steel SA - Vanderbijlpark
30 ArcelorMittal Steel SA - Vanderbijlpark
31 ASA Metals (Pty) Ltd
32 Assmang Ltd - Cato Ridge
33 Assmang Ltd - Khumani Iron Ore Mine
34 Assmang Ltd - Machadodorp
35 Barplats Mines Ltd
36 Bayside Aluminium
37 BHP Billiton Energy Coal SA - Douglas Colliery Services Ltd
38 BHP Billiton Energy Coal SA - Khutala
39 BHP Billiton Energy Coal SA - Klipspruit
40 BHP Billiton Energy Coal SA - Middelburg Mine Services Ltd
41 Black Mountain Mining Co
42 Blue Ridge Platinum Mine
43 Cape Town Iron and Steel Works (Pty) Ltd - CISCO
44 Chevron South Africa (Pty) Ltd
45 Columbus Stainless (Pty) Ltd
46 De Beers Mines Ltd - Finch
47 De Beers Mines Ltd - Kimberley
48 De Beers Mines Ltd - Venetia Mine
49 DRD Ltd - Blyvooruitzicht
50 DRD Ltd - Doornfontein
51 East Rand Proprietary Mines Ltd - Far East
52 Eastern Platinum Ltd
53 EB Steam Utility Co (Pty) Ltd - Ballantrae
54 EB Steam Utility Co (Pty) Ltd - Frame
55 EB Steam Utility Co (Pty) Ltd - Maydon
56 EB Steam Utility Co (Pty) Ltd - Prospecton
57 EB Steam Utility Co (Pty) Ltd - Sans Fibres
58 Eskom - Bosloop Pumps
59 Exxaro Base Metals (Pty) Ltd
60 Exxaro Coal (Pty) Ltd - Grootegeluk
61 Exxaro Coal (Pty) Ltd - Matla
62 Exxaro Sands (Pty) Ltd
63 Ferrometals (Pty) Ltd
64 Foskor Ltd
65 GFIMSA - Beatrix Ltd
66 GFIMSA - Driefontein Division
67 Graftech (Pty) Ltd
68 Harmony GM - Elandsrand
69 Harmony GM - Evander
70 Harmony GM - Freegold
71 Harmony GM - Randfontein Estates
72 Harmony GM - Target Operations
73 Harmony GM - Virginia
74 Hernic Ferrochrome (Pty) Ltd - Brits
75 Highveld Steel and Vanadium Ltd - Highveld
76 Highveld Steel and Vanadium Ltd - Rand Carbide
77 Hillside Aluminium
78 Impala Platinum (Pty) Ltd - Marula
79 Impala Platinum (Pty) Ltd - Refineries
80 Impala Platinum (Pty) Ltd - Rustenburg
81 International Ferro Metals SA (Pty) Ltd
82 Karee Platinum Mine
83 Kloof Gold Mining Company Limited
84 Kumba Iron Ore Ltd - Sishen
85 Lafarge Cement (Pty) Ltd - Whites
86 Mainstreet 432 - Koornfontein Mines
87 Manganese Metal Co (Pty) Ltd - Nelspruit
88 Messina Platinum Mines LTD
89 Metrorail Services - Cape
90 Metrorail Services - Johannesburg
91 Middelburg Ferrochrome (Pty) Ltd
92 Mogale Alloys (Pty) Ltd
93 Namakwa Sands Ltd - Brand-se-Baai
94 Namakwa Sands Ltd - Smelter
95 National Petroleum Refiners SA (Pty) Ltd
96 Necsa (Pty) Ltd
97 Northam Platinum Ltd
98 Optimum Colliery
99 Palabora Mining Co Ltd
100 Aurora Mining
Issued by Parliament, May 14 2010
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