Eskom chairperson Jabu Mabuza, told Parliament’s public enterprises committee that Eskom was over-staffed at all levels and would have to right-size. File Photo: IOL

JOHANNESBURG – In a statement, the state-owned power utility Eskom said despite efforts to curb expenditure, its operating costs had continued to increase dramatically while output remained largely unchanged. 

As a result, Eskom’s board of directors had decided to review the company’s organisational design to enhance operational and cost efficiencies.

“As such, Eskom’s board has approved a Section 189 process for its executive structure [F-Bands]. Only members of the executive structure will be impacted,” it said. 

In August, Eskom chairperson Jabu Mabuza, told Parliament’s public enterprises committee that Eskom was over-staffed at all levels and would have to right-size. 

Eskom is facing a financial quadmire with falling sales, an inability to meet debt obligations and tariffs that are not cost-reflective. 

With debt of more than R350 billion and rising, it faces an interest bill of R215bn over the next five years, which it is no longer able to service from operational income. 

Eskom said it would share updates with the relevant stakeholders. 

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