Eskom executives surrender bonuses
The utility says its main priority is to ensure a reliable power grid in the coming years.
JOHANNESBURG - Eskom executives have agreed to forgo their annual bonuses this year in an effort to reduce expenses at the parastatal.
The power company says the move is aimed at helping to address its R255 billion revenue shortfall for the period 2013 to 2018, as well as a National Energy Regulator of South Africa-approved tariff increase of eight percent which left the company with a "funding gap".
"Eskom's top executives will be forgoing their performance bonuses for the past financial year," explains Eskom spokesperson Andrew Etzinger, citing "the financial situation of the company and the prevailing environment".
The company says its major focus is to continue providing services while reducing expenses.
"It became necessary to rally around all our employees to deliver efficient services with less resources," says interim CEO Collin Matjila. "We will continue to drive a conscious and concerted effort to cut waste across our business."
Matjila says the board welcomed the move as a necessary step towards achieving financial stability in the long term.
"It is important that Eskom remains financially sustainable to enable us to keep the lights on whilst we complete the new build programme that will ease the pressure on the national grid," he says.
The utility says it's "acutely aware of its obligations" to guarantee a secure power grid and drive the country's economic growth by meeting its energy needs.