Eskom pushes electricity prices higher in South Africa as employee costs skyrocket to nearly a million rand each in 2024

Eskom pushes electricity prices higher in South Africa as employee costs skyrocket to nearly a million rand each in 2024

As South Africans continue to grapple with rising electricity costs and frustrating power cuts, a new spotlight has been thrown on Eskom—this time, for how much it’s paying its employees.

And let’s just say, the numbers are eye-watering.

From Modest Wages to Massive Payouts

Back in 1990, the average cost per Eskom employee was a relatively modest R38,000 per year.

Fast forward to 2024, and that figure has ballooned to a staggering R913,000 per employee.

That’s nearly a 1,000% increase over three decades.

What’s even more concerning is that this massive jump in employee costs has added fuel to the fire when it comes to the rising cost of electricity in South Africa.

In fact, electricity prices have surged by 190% since 2014.

Yet, despite spending more, Eskom is actually generating less electricity than it used to.

Too Many Hands on Deck?

It’s not just the salaries that are drawing attention.

According to a 2014 World Bank report highlighted by Business Tech, Eskom was heavily overstaffed.

At the time, the utility had around 41,787 employees, even though the report suggested it only needed 14,244. That’s 66% more staff than necessary.

To put that into perspective, the World Bank calculated that there was one Eskom worker for every 413 electricity users.

Even as recently as 2023, staff continued to see pay increases—a 7% bump, to be exact.

Power Grid Still Holding Steady—for Now

Despite all these challenges, Eskom has assured the public that the national power grid remains stable, even as winter demand starts to spike.

Between April 1 and May 8, Eskom reported a small but notable improvement in performance: its Unplanned Capacity Loss Factor (UCLF) dropped to 27.99%, a 1.2% improvement compared to the same period last year.

There’s also been an uptick in planned maintenance, with around 6,904MW—or nearly 15%—of total generation capacity currently being serviced.

Eskom says its system is being propped up by emergency reserves, which help cushion the load during peak periods.

Is It Time for a Change?

With sky-high employee costs, persistent power issues, and an ever-rising electricity bill for the average household, it’s no surprise that South Africans are asking tough questions.

Is Eskom spending wisely? And can the country afford this kind of wage bill for a service that seems to be delivering less each year?

We’d love to hear your thoughts—drop a comment, send a message, or join the conversation on social media.