Dear Stakeholder

A number of customers in the Western Cape and other parts of the country were without electricity last night due to Eskom having to implement controlled load shedding in the Western Cape and parts of the country as a result of under frequency on the transmission system. A media release to this effect was issued late last night, 8 June 2006.

The under frequency on the transmission system was caused by an unplanned manual shutdown of Koeberg unit one. The total load shed in the country due to the Koeberg trip was 1172 MW. The load shedding took place as follows:

- Central Region (Johannesburg Distribution Centre) = 220MW
- Witbank Regional Control Centre (Pretoria Distribution Centre) = 525 MW (all voluntary load shedding)
- Bloemfontein Regional Control Centre (Free State) = 15MW
- Eastern Cape Regional Control Centre (Sunnilaws) = 21MW
- Eastern Regional Control Centre (KZN) = 55MW
- Western Cape Regional Control Centre (Bellville) = 336MW

A series of alternative energy supply measures were applied and implemented, utilising all available interruptible contracts; emergency generation; and demand market participation before load shedding was considered. These measures included the following:

- Interruptible contracts at Bayside = 300MW
- Emergency Generation was already in force (Port Rex and PetroSa Units)
- Cape City was requested to assist with gas turbines
- Power Alert was broadcast on radio
- Direct Market Participation of 433 MW was already in force

Load shedding was a measure of last resort.

Whilst load in other parts of the country was restored within an hour, parts of the Western Cape were without electricity for approximately two and half hours.

Based on the precautionary principle, Koeberg unit 1 was manually shut down by the operators at approximately 18:00. A problem developed in one of the electrical supply boards at the station. In accordance with operating procedures the operators immediately manually shut down the reactor, with the result that the unit stopped generating and supplying electricity into the national transmission network. The reactor is being maintained in a safe and stable condition.

The problem with the electrical supply board is currently under investigation and at this stage it is not known when the unit will be re-started. The unavailability of Koeberg will result in scheduled load shedding in the Western Cape.

We expect to load shed approximately 300 - 700MW from 06:00 today, 9 June 2006. The Orange schedule is available on the Eskom website or consumers can contact the Eskom share call number on 08600 37566. Customers of the City of Cape Town should contact the City's Call Centre regarding load shedding information on 0860 125 008.

Eskom apologises for the inconvenience to our customers during the load shedding, and most particularly because of the discomfort of having no electricity supply during these cold weather conditions. The immediate intervention that will help to minimise load shedding is for consumers to use electricity more efficiently.

In this regard we have been encouraging the public, through extensive awareness and educational campaigns at a national level, to switch off electrical appliances when they are not essential or; to install compact fluorescent lights and to install geyser blankets, amongst others.

We acknowledge and value the enormous contribution from business and residential communities to date to conserve energy, and encourage their continued support and participation.

Regards