(Archive photo: GCIS)
As South Africans grapple with double-digit electricity increases and rising inflation, Eskom has rewarded its staff with more than R5.4 billion in performance incentives.
“This is unacceptable,” says Kevin Mileham, DA MP and the party’s spokesperson on electricity and energy.
“A state-owned utility company that only achieved an artificial profit of R23.9 billion thanks to a R64 billion taxpayer-funded debt relief package has no right to give billions for bonuses.”
Eskom’s top management appeared before the parliamentary portfolio committee on electricity and energy this week regarding its corporate plan and budget for the 2026-27 financial year.
The committee questioned the justification for performance bonuses in the face of unmet key performance targets. Eskom recognized the ambitious nature of the targets and the challenges encountered in achieving them. However, management highlighted the “significant progress” in operational performance.
Members of the committee expressed concern about employee costs and salary increases exceeding inflation rates. Eskom justified these adjustments as necessary to retain skilled workers, while also accepting the need for cost containment in the light of the economic situation and the high electricity costs faced by consumers.
Mileham believes Dr. Kgosientsho Ramokgopa, the Minister of Electricity and Energy, must intervene immediately to stop the excessive payouts and redirect funds to lowering the cost of electricity for struggling citizens.
According to Mileham, Eskom’s integrated report of 2025 shows a sharp gap between operational reality and executive reward.
“Despite an energy availability factor of only 60.6%, well below international standards, Eskom allocated R4.2 billion for the group’s short-term incentive scheme and R1.2 billion in monthly production bonuses.”
According to Mileham, this amounts to an average bonus of more than R128 000 per employee, more than most South Africans earn in a whole year
“This R5.4 billion is not ‘self-financed’ excellence. It is a transfer from the national fiscus directly into the pockets of Eskom employees. Meanwhile, Eskom’s staff figure has grown year on year by 1 405 people to 42 030, an inexplicable expansion for a utility company of this size and financial fragility.”
Mileham believes that Eskom’s so-called return to profitability is a statistical illusion.
“The R23.9 billion ‘profit’ is dwarfed by R64 billion in government support. Municipal arrears rose by 27% in a single year to R94.6 billion. Without government intervention, Eskom remains technically insolvent.”
The DA demands that Ramokgopa suspend the R4.2 billion payout immediately.
“Eskom’s leadership must also appear before the portfolio committee to account for the increase in production bonuses against a background of rising municipal debt. Eskom cannot function as a private wealth fund for its employees while it remains a public burden on every South African taxpayer.”