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City Power Johannesburg (Pty) Ltd Annual Report 2009 / 2010

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City Power Johannesburg (Pty) Ltd Annual Report 2009 / 2010 City Power Johannesburg (Pty) Ltd Annual Report 2009 / 2010 Registration No: 2000/030051/07 (In terms of Section 21 of the Companies Act Municipal Finance Management Act, 2003 and Section 46 of the Municipal Systems Act, 2000 ) 1 City Power 2009/10 Annual Report CITY POWER JOHANNESBURG (PROPRIERTARY) LIMITED INCORPORATED UNDER SECTION 21 OF THE COMPANIES ACT COMPANY INFORMATION: Registration number : 2000/030051/07 Registered address : 40 Heronmere Road Reuven Booysens Postal address : PO Box 38766 Booysens 2016 Telephone number : (011) 490-7000 Fax number : (011) 490-7377 Website : www.citypower.co.za Bankers : Absa Bank of SA Limited Auditors : Auditor-General Page 2 City Power 2009/10 Annual Report Table of contents TABLE OF CONTENTS ............................................................................................................................... 3 SECTION 1: CITY POWER PROFILE ......................................................................................................... 5 1.1 SCOPE REPORT ........................................................................................................................................... 5 1.2 COMPANY PROFILE ...................................................................................................................................... 5 1.2.2 Customer Base ......................................................................................................................................... 6 1.2.3 City Power Staff Complement .................................................................................................................. 6 1.2.4 City Power’s Area of Supply ..................................................................................................................... 7 1.2.5 High Level Company Structure as at 30 June 2010 .................................................................................. 8 1.3 VISION , MISSION , VALUES , AND STRATEGIC DIRECTION ............................................................................. 9 1.3.1 Vision ....................................................................................................................................................... 9 1.3.2 Mission ..................................................................................................................................................... 9 1.3.3 Aspired values .......................................................................................................................................... 9 1.3.3 Mayoral Priorities .................................................................................................................................... 9 1.3.5 City Power’s Strategic Issues .................................................................................................................. 10 1.3.6 Growth and Development Strategy (GDS) and City Power’s Strategic Agenda Alignment .................... 10 SECTION 2: LEADERSHIP OVERVIEW ................................................................................................... 14 2.1 MEMBER OF THE MAYORAL COMMITTEE ‘S REVIEW .................................................................................. 14 2.2 CHAIRPERSON ’S REVIEW ........................................................................................................................... 15 2.3 BOARD OF DIRECTORS QUALIFICATIONS AND SKILLS MATRIX ................................................................... 16 2.4 AUDIT COMMITTEE ’S QUALIFICATIONS AND SKILLS MATRIX ...................................................................... 18 2.5 MANAGING DIRECTOR ’S REVIEW ............................................................................................................... 19 2.6 DIRECTORS QUALIFICATIONS AND SKILLS MATRIX ..................................................................................... 21 SECTION 3: PERFORMANCE REVIEW ................................................................................................... 22 3.1 HIGHLIGHTS AND ACHIEVEMENTS ............................................................................................................. 22 3.2 COMPANY FOUR -YEAR REVIEW .................................................................................................................. 23 3.3 PERFORMANCE AGAINST IDP AND CITY SCORECARD .............................................................................. 24 3.4 ASSESSMENT OF IDP CRITERIA ............................................................................................................... 29 The table below indicates electrification projects completed in 2009/10: ......................................................... 30 3.5 ASSESSMENT OF ARREARS ON SERVICE CHARGES ................................................................................. 42 3.5.1 Assessment of municipal taxes and service charges owed to City Power .............................................. 42 3.5.2 Assessment owed by City Power for service charges ............................................................................. 42 3.5.3 Assessment of directors’ and senior managers’ municipal accounts ..................................................... 42 3.6 STATEMENT OF AMOUNTS OWED BY GOVERNMENT DEPARTMENTS AND PUBLIC ENTITIES .................... 43 3.7 RECOMMENDATIONS AND PLANS FOR NEXT FINANCIAL YEAR ................................................................... 49 3.8 KEY FOCUS AREAS FOR THE 2010/11 FINANCIAL YEAR ........................................................................... 49 SECTION 4: CORPORATE GOVERNANCE ............................................................................................. 50 4.1 STATEMENT OF COMPLIANCE .................................................................................................................... 50 4.2 BOARD OF DIRECTORS .............................................................................................................................. 50 4.3 BOARD COMMITTEES ................................................................................................................................. 53 4.3.1 Audit Committee .................................................................................................................................... 53 Page 3 City Power 2009/10 Annual Report 4.3.2 Human Resources and Remuneration Committee ................................................................................. 53 4.3.3 Pricing and Regulatory Committee ........................................................................................................ 54 4.3.4 Board Oversight Committee .................................................................................................................. 54 4.3.5 Ad hoc EDI Working Group .................................................................................................................... 54 4.3.6 Turnaround Strategy Working Group .................................................................................................... 54 4.3.7 Phakama Working Group ..................................................................................................................... 55 4.4 DIRECTORS ' REMUNERATION .................................................................................................................... 55 SECTION 5: SUSTAINABILITY REPORT ................................................................................................. 57 5.1 SUSTAINABILITY VISION ............................................................................................................................. 57 5.2 SUSTAINABILITY POLICIES AND STRATEGIES ............................................................................................ 57 5.3 MATERIAL ISSUES ...................................................................................................................................... 57 5.4 SUSTAINABILITY COMMITMENT .................................................................................................................. 57 5.5 ECONOMIC DEVELOPMENT ......................................................................................................................... 57 5.6 ENVIRONMENTAL DEVELOPMENT ............................................................................................................... 57 5.7 SAFETY ....................................................................................................................................................... 57 5.8 FINANCIAL SUSTAINABILITY ....................................................................................................................... 58 5.8.1 Revenue streams ........................................................................................................................................ 58 5.8.2 Financial performance ............................................................................................................................... 58 5.9 SUSTAINABILITY RISKS ............................................................................................................................... 59 5.10 TRANSFORMATION AND EMPOWERING EMPLOYEES ................................................................................. 59 5.10.1 Skills Training and job creation ................................................................................................................ 59 5.10.2 Social development
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