Eskom executives are to forgo their annual bonuses this year in light of the parastatal’s R255 billion revenue shortfall, interim CEO Collin Matjila said on Wednesday.
“They acknowledged the financial constraints by agreeing to forgo their annual performance bonuses this year as one of the efforts to cut costs,” he said in a statement.
“The board welcomed this move as the company is implementing efficiency intervention initiatives to achieve long-term financial sustainability.”
Eskom said the National Energy Regulator of South Africa (Nersa) approved a tariff increase of 8%, which left it with a funding gap.
It set up a business productivity programme last year in an attempt to make its operations more efficient.
Matjila said the Eskom board established a special joint committee which was considering a number of what it called non-conventional sustainable funding solutions.
“While significant shifts have been made in terms of business operations to achieve internal efficiencies, the company is certain that this revenue shortfall cannot be achieved by belt-tightening alone,” he said.
“It remains important to move towards a cost-reflective tariff urgently.”
Eskom was in discussion with the national treasury, through the public enterprises department, to find a long-term solution. — Sapa