The amount Eskom spends on staff to produce one kilowatt-hour (kWh) of electricity rose by 1,422% between 1994 and 2026, according to an analysis by Newsday.
The figures show that Eskom’s employee cost per kWh climbed from 1.79 cents in 1994 to 27.25 cents in 2026.
Employee cost per kWh is a common measure used to judge power utilities. It shows how much a company spends on labour for each unit of power it generates, sends or distributes.
A lower number usually points to better worker productivity, more automation or savings from large scale. Newsday said Eskom’s rising figure points to a serious problem with staff productivity.
In 1994, Eskom produced 160,293 gigawatt-hours (GWh) of electricity. Its total staff bill that year was R2.868 billion.
Through the 1990s and early 2000s, staff costs per unit stayed low. They rose slowly to 3.68 cents per kWh by 2003.
Newsday said this period was marked by high efficiency at the power utility and growing generation volumes.
The picture changed after load shedding began. The publication linked Eskom’s later struggles to mismanagement and corruption.
Between 2009 and 2017, the cost per kWh more than doubled. It went from 6.60 cents to 15.08 cents over those years.
According to the analysis, this jump was driven by a larger headcount, yearly wage increases and more overtime.
From 2017 to 2023, the figure held steady. Newsday said this followed cost cutting, a freeze on executive bonuses and a smaller workforce.
Costs then rose sharply between 2023 and 2026. This happened under the new board led by chairman Mteto Nyati.
The analysis said the increase came from large salary adjustments below executive level and higher operational performance bonuses. Eskom also brought back its short-term incentive scheme.
Over those three years, the cost per kWh rose by 61%. It moved from 16.88 cents to 27.25 cents.
Newsday said the power utility did not produce much more electricity to match the higher wage bill.
Eskom’s power generation fell from 195,702 GWh in 2025 to 184,966 GWh in 2026, according to the figures.
Over the same period, Eskom added 1,244 people to its staff. Its employee costs rose from R45.4 billion to R50.4 billion.
Newsday said this trend cannot be sustained. It said rising staff costs are the reason Eskom needs large price increases to cover its spending.
Source: this article is based on reporting by newsday.co.za. Image: newsday.co.za. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.