Eskom: ‘bonus reports untrue’

2020-01-15 06:00

ESKOM has not paid any performance bonuses in the past two years, nor has it applied to the national energy regulator to allow for R1,8 billion in performance bonus pay.

The power utility yesterday morning issued a statement hitting back at claims made in court papers filed by Nersa, as reported by City Press.

Eskom lodged a court application, which will be heard next week, to have Nersa revise its decision on electricity tariffs for the next three years. Nersa regulates the electricity, piped-gas and petroleum pipelines industries. Its role involves setting tariffs which Eskom can charge customers.

According to the report, Nersa contended that Eskom planned to pay performance bonuses valued at R1,8 billion for the financial years 2019 to 2022. The report caused an uproar on social media as South Africans objected to the supposed performance bonuses given that Eskom can’t keep the lights on.

Eskom, however, in its statement, hit back at claims in the report. “Eskom has not applied to the National Energy Regulator of South Africa (Nersa) for R1,8 billion to pay performance bonuses, as reported in a Sunday newspaper,” Eskom said.

“In keeping with a board decision reflecting the poor performance of the business, no performance bonuses have been paid to employees in the past two years,” the statement read.

“The application included a provision for an annual bonus for the three-year period — which is equivalent to a 13th cheque which forms part of the Eskom basic conditions of service and cost to company — i.e. employees’ normal remuneration package,” Eskom said.

For employees who do not have the 13th cheque as part of their conditions of service — there is an option for them to structure their package in a way that they will receive a 13th cheque, without increasing their overall compensation, Eskom said.

In an interview with CapeTalk radio on Monday, chief operations officer Jan Oberholzer also said the bonus report was untrue. — Fin24.

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