Eskom’s top managers will forgo much of their annual bonuses this year after a troubled few months for the state-owned power utility, the South African Broadcasting Corporation reported on Friday.
Eskom chairperson Valli Moosa said chief executive Jacob Maroga has decided not to accept a bonus this year.
The utility had planned to pay Maroga a good bonus, he said, for keeping Eskom together through the load-shedding crisis earlier this year and making some “extremely tough” judgement calls.
The bonuses of another five senior executives on the Eskom executive committee will be halved.
Business Day reported on Friday that Maroga’s unprecedented decision likely cost him more than R1,5-million.
Moosa said Eskom is reviewing the criteria it uses to determine bonuses. It is currently based on the utility having excess power capacity.
Maroga’s predecessor, Thulane Gcabashe, earned a bonus of R1,5-million on top of his R4,6-million salary in the previous financial year; Maroga — then head of generation — added a R1,1-million bonus to his R2-million salary, Business Day reported.
Eskom is currently implementing a recovery plan after the extensive load-shedding earlier this year, blamed on low stockpiles and wet coal.
Last week the National Energy Regulator of South Africa granted Eskom an average 13,3% tariff hike in addition to last year’s 14,2% approved by the regulator.
“It is bold, courageous and it’s very responsible,” said Maroga of the hike at the time, adding that the decision gave a clear message about where the energy regulator believed tariffs should go in the future.
AgriSA on Monday expressed concern over the tariff hike, saying the increase will cost the agricultural sector approximately R300-million per year.
AgriSA president Lourie Bosman said he was “seriously” concerned about the implications for the sector. “The announcement comes amidst a series of cost increases in the economy that pose serious financial implications for the agricultural sector,” he said.