Eskom’s Employee Costs Surge from R38,000 to R913,000 Over Three Decades
South Africa’s power utility Eskom has seen its average cost per employee skyrocket from R38,000 in 1990 to a staggering R913,000 in 2024 – an exponential increase that has significantly impacted electricity pricing nationwide.
1,000% Increase in Employee Costs
According to Business Tech, this nearly 1,000% growth in per-employee costs has directly contributed to electricity price hikes of 190% since 2014. Shockingly, this cost escalation comes despite Eskom producing less electricity than before.
A 2014 World Bank report revealed Eskom maintains the largest workforce among sub-Saharan African utilities, with 41,787 employees – 66% more than the estimated 14,244 needed for optimal operations. The World Bank calculated Eskom employs one worker for every 413 electricity users.
In 2023, Eskom employees received a 7% salary increase, further adding to operational expenses.
Grid Stability Maintained Despite Challenges
Eskom has reassured consumers that the national power grid remains stable despite rising winter demand. From April 1 to May 8, the utility’s Unplanned Capacity Loss Factor improved by 1.2% year-over-year to 27.99%.
The company has increased planned maintenance to 6,904MW (14.76% of total capacity) and maintains sufficient emergency reserves to manage peak winter periods.
Have Your Say on Eskom’s Employee Costs
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