A Come-back For Eskom In 2019?

The nation’s power utility has announced its decision to go forward with retrenchments at Eskom after an approval from it’s board. Eskom also unraveled its new top management structure which will see a reduction of top executives from 21 to nine.

However, it says some Executives volunteered to be relieved of their responsibilities within Eskom. Spokesperson, Khulu Phasiwe has confirmed that letters have been sent to some members.

Eskom’s CEO Phakamani Hadebe said “This was not an easy process, and I appreciate the patience and support of all those involved as we worked to conclude matters as efficiently as possible. We have managed to reduce the number of F-Band positions from a total of 21 to nine by way of regrading or combining roles,” he added that the company’s new structure would – along with their turnaround strategy – bring the power utility closer to stability.

A World Bank report published in 2016, which bench-marked Eskom against South Amercian electricity utilities, said Eskom was overstaffed by 66%. The power utility, which has been described as a risk to the health of SA’s economy by credit rating agencies, is burdened with a R419 billion debt and is looking to the government for a bailout. It was forced to implement load shedding during late November due to breakdowns and lack of spending on maintenance at power plants.

President Cyril Ramaphosa appointed an Eskom Sustainability Task Team to advise government on actions to resolve Eskom’s operational, structural and financial woes in mid-December. The team was tasked with coming up with solutions to the various problems faced by Eskom, and consists of “individuals with extensive electricity, management and economic expertise”, spokesperson Khusela Diko said.

Power cuts blanketed the nation late last month , its been a tough time for the energy suppler in recent years, Eskom has set to launch its turnaround strategy in 2019 this may or may not lead the company to being in a renewed state of stability.