Tuesday, 07 January 2020: 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.
The MYPD4 application made by Eskom
for the three year period did not include any allocation for performance
bonuses. 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. For those employees for whom a 13th
cheque is not part of their conditions of service (i.e. non-union employees) an
option is given to structure their package to provide for a 13th
cheque without increasing their overall compensation. 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.
NERSA in its decision incorrectly
disallowed these contractual costs and hence they do not form part of the
allowed revenue granted to Eskom.
Separately, Eskom has lodged a court
application to review NERSA’s fourth multi-year price determination (MYPD 4)
decision to deduct the R69 billion that government has provided to Eskom as shareholder
support. The court application does not include any other aspects of the MYPD4
decision. This case will be heard in court next week.
ENDS