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Eskom remains committed to reducing its cost base
Friday, 6 July 2018: Eskom notes the article written in today’s Business Day titled “Struggling Eskom splurges on execs”.
Eskom has stated that its focus is on maximising revenue and reducing costs, with a view to enhancing its financial sustainability. In line with this, Eskom has taken difficult decisions such as reducing capital expenditure from R55bn to R45bn, a saving of R10bn per annum. Eskom has further reduced operating costs to R132bn, a 5% decrease between FY2017 and FY2018.
Phakamani Hadebe, Eskom Group Chief Executive says, “I want to emphasise that reducing costs whilst maximising revenue is key to our strategy. We have identified new revenue streams that will deliver an additional R1.5bn by the end of the financial year. Whilst this indicates the right trajectory, as Eskom management we acknowledge that this is not adequate. We have since identified other measures that will further reduce operating costs, included here are employee productivity levels of which employee benefits is part. This is being discussed at the highest decision-making levels of Eskom”.