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.<\/p>\n
“[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.<\/p>\n
“The board welcomed this move as the company is implementing efficiency intervention initiatives to achieve long-term financial sustainability.”<\/p>\n
Eskom said the National Energy Regulator of SA (Nersa) approved a tariff increase of eight percent, which left it with a funding gap.<\/p>\n
It set up a business productivity programme last year in an attempt to make its operations more efficient.<\/p>\n
Matjila said the Eskom board established a special joint committee which was considering a number of what it called non-conventional sustainable funding solutions.<\/p>\n
“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.<\/p>\n
“It remains important to move towards a cost-reflective tariff urgently.”<\/p>\n
Eskom was in discussion with the National Treasury, through the public enterprises department, to find a long-term solution.<\/p>\n
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