Eskom denies applying for performance bonus funds
State-owned power utility Eskom has denied media reports of it having applied to the National Energy Regulator of South Africa (Nersa) for R1.8-billion to pay “performance bonuses”.
It clarified in a statement on Tuesday that its Multi-Year Price Determination 4 (MYPD 4) application to Nersa had included a provision for an annual bonus for the three-year period, which it said was equivalent to a thirteenth cheque, which formed part of Eskom’s basic conditions of service and cost to company.
For those employees for whom a thirteenth cheque is not part of the conditions of service, such as non-union employees, an option is given to structure their package to provide for a performance bonus without increasing their overall compensation.
However, in keeping with the poor performance of the utility, the board members maintained their position that no performance bonuses had been paid to employees in the past two years.
Eskom further pointed out that Nersa, in its decision, incorrectly disallowed these contractual costs, which did not form part of the allowed revenue granted to Eskom.
Meanwhile, the utility had separately lodged a court application to review Nersa’s 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 MYPD 4 decision.
Eskom confirmed that the case would be heard in court next week.
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