This means the annual bonuses for Eskom’s senior executives will not take their annual
bonuses for the financial year 2013/14 in light of the R225-billion revenue shortfall experienced over the five-year period between 2013 and 2018.
Eskom has been facing many a challenges and the move should be welcomed, although some analysts believe despite the decision the power supplier still has a long way to go in balancing their books.
Last year, Eskom was approved a tariff increase of only 8% by the National Energy Regulator of South Africa (Nersa), although the power supplier had asked for more. As a result Eskom initiated a programme Business Productivity Programme (BPP) in 2013 to extract efficiencies within the business.
“The top executives at Eskom have acknowledged the financial constraints by agreeing to forgo their annual performance bonuses this year as one of the efforts to cut costs. The Board welcomed this move as the company is implementing efficiency intervention initiatives to achieve long-term financial sustainability.”
“It became necessary to rally around all our employees to deliver efficient services with less resources. We will continue to drive a conscious and concerted effort to cut waste across our business,” says Matjila.
Eskom, through its shareholder ministry, the Department of Public Enterprises, is in discussion with the National Treasury to find a long-term solution.
However, it is not known how the new minister of Public Enterprises Lynne Brown, will fight her way out of this.