KATHERINE BROWN: The dying of the light
Fixing Eskom requires a better mix of energy sources including nuclear, a lower wage bill, appointing staff on merit and more autonomy for the board
Eskom’s crisis is captured in the fact that it is employing more staff to sell less electricity than was the case 10 years ago. With a workforce of 48,628 in 2017/2018, Eskom produced 232,803GWh of electricity; a decade ago it had 35,404 employees who produced 247,773GWh. The utility’s integrated annual reports reveal several causes of the current predicament, including decreased productivity; an inflated wage bill; a bloated workforce; and rising debt (currently more than double Eskom’s revenue). These problems have culminated in rolling blackouts and frequent load-shedding, which represent a systemic risk to the economy. According to the World Bank, Eskom is overstaffed by 66% and requires only 14,244 employees to operate optimally. Moreover, its wage bill for 2018/2019 is estimated to be R27.14bn (R5.14bn in 1998). This follows a 7.5% wage increase in 2018, after fraught negotiations between the Eskom board — which initially opposed any increase — and the unions. In addition to a...
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