Eskom, South Africa’s state-owned power utility, stands at a critical juncture. Years of financial strain, operational inefficiencies, and infrastructure challenges have left the country grappling with persistent energy shortages and rolling blackouts. As power demand continues to rise, Eskom’s ability to provide reliable electricity has become a growing concern, impacting businesses, households, and the nation’s economic growth.
The urgency for reform has never been greater. From aging power plants and crippling debt to governance setbacks and regulatory obstacles, Eskom faces a series of complex challenges that demand immediate and strategic action. A comprehensive restructuring plan, investment in sustainable energy sources, and improved management practices could pave the way for a more resilient and efficient power system.
South Africa’s energy future depends on decisive leadership and innovative solutions. The transition to renewable energy, enhanced grid stability, and transparent governance are key components of Eskom’s much-needed transformation. Reform is not just an option—it is essential for safeguarding the country’s energy security and restoring confidence in the utility’s ability to power South Africa’s growth.
Now is the time to act. Eskom must embrace change, adapt to modern energy demands, and implement reforms that ensure a sustainable and reliable electricity supply for generations to come.
Eskom: A Call for Serious Reform
The ‘Baggage’ Problem
In a previous post, under the sub-heading “The ‘Baggage’ Problem,” I highlighted the issue of a disproportionate number of support staff versus those actually delivering electricity. For every person responsible for keeping the lights on, there are likely four staff members whose roles don’t directly contribute to the core mission. Little did I know that another article was published on the BusinessTech website on the same day, 12 May 2025, with the heading “Eskom’s cost per employee increased from R38,000 in 1990 to R913,000 in 2024.”
The Workforce Dilemma
According to the article on the BusinessTech website, “A World Bank policy research paper found that Eskom has too many employees.” The World Bank estimates that “Eskom required a workforce of only 14,244 people to serve its customers.” 2 This is not the first time this issue has been brought up. During an Eskom management meeting in 1989, the same sentiments were expressed by a former Eskom CEO.
The Road Ahead: A Call for Change
Eskom’s problems are not just about financial mismanagement—they stem from poor leadership, lack of technical skills, and an outdated approach to energy management. The real challenge is fixing the culture of inefficiency and mediocrity that has taken root over the years.
The Cost Conundrum
In the article published by BusinessTech, it is mentioned that, in 1990, the average cost per employee was R38,000. In 2024, the cost ballooned to R913,000, a 976% increase over 34 years. 4 There is an old American-English phrase “too many chiefs and not enough Indians” that comes to mind when considering Eskom’s workforce. Then Nersa approves tariff increases every year! We don’t deserve this.
Conclusion: The Need for Reform
Eskom’s inefficiencies and skyrocketing costs are clear indicators that serious reform is needed. The focus should be on streamlining the workforce, improving leadership, and adopting modern energy management practices. Only then can Eskom hope to fulfill its core mission of delivering reliable electricity to its customers.
You must be logged in to access the form.