POWER utility Eskom said yesterday that its senior executives would not take their annual bonuses for the 2013-14 financial year to cut costs.
Interim CEO Colin Matjila said top executives had acknowledged the financial constraints Eskom was experiencing. Eskom is expecting a R225-billion revenue shortfall over the five-year period between 2013 and 2018.
“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. It remains important to move towards a cost-reflective tariff urgently. Eskom‚ through its shareholder ministry‚ the Department of Public Enterprises‚ is in discussions with the National Treasury to find a long-term solution‚” said Matjila.
The National Energy Regulator of South Africa (Nersa) approved a tariff increase of 8% which left Eskom with a funding gap. Eskom said that in response‚ it had set up a special joint committee which would consider a range of non-conventional sustainable funding solutions‚ including equity/equity-like instruments.
“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‚” Matjila said. — BDLive
Top Eskom executives to forego their bonuses
Interim CEO Colin Matjila said top executives had acknowledged the financial constraints Eskom was experiencing. Eskom is expecting a R225-billion revenue shortfall over the five-year period between 2013 and 2018.
“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. It remains important to move towards a cost-reflective tariff urgently. Eskom‚ through its shareholder ministry‚ the Department of Public Enterprises‚ is in discussions with the National Treasury to find a long-term solution‚” said Matjila.
The National Energy Regulator of South Africa (Nersa) approved a tariff increase of 8% which left Eskom with a funding gap. Eskom said that in response‚ it had set up a special joint committee which would consider a range of non-conventional sustainable funding solutions‚ including equity/equity-like instruments.
“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‚” Matjila said. — BDLive
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