PORTFOLIO COMMITTEE ON MINERALS AND ENERGY

From: Louise Muller

To: Shanaaz Isaacs

Date: 12 February 2007

Good Day Shanaaz

I understand that Neil Ballantyne has forwarded his notice of the above mentioned meeting to Les Rencontre, the Director responsible for Electricity in the City of Cape Town - who in turn has notified you that he win be involved in a Strategic Planning session with his Directorate - which includes Dr B V Msengana.

I do trust that you will accept the apologies of the City regarding this meeting as the above mentioned two people are those directly responsible for ensuring the electricity restructuring process continues. At this time I am involved in internal processes to ensure that an amicable solution is reached between the City and RED1 and EDI Holdings on the way forward. The City is not in a position to discuss these matters externally until there has been agreement between all the parties concerned.

Kind regards Louise

Louise Muller: Director: Shareholding Management Finance Directorate