TIME FOR A CHANGE AT EEC

Sir,

I read your recent article discussing submissions made by consumers regarding the EEC, and I was struck by a glaring omission: the company’s top-heavy management structure.
As a disgruntled consumer, I find it outrageous that we, the consumers, are forced to sustain an organisation whose executives are compensated handsomely while the rest of us struggle to make ends meet. The EEC, despite being classified as a parastatal, has managed to outcompete even the most successful private sector companies, such as those in the Sugar Belt and Matsapha.

Success

Yet, this success comes at a price. The executive salaries are exorbitant, leading to a misallocation of resources that harms the very services the company is supposed to provide. It is high time we consider the privatisation of the EEC to foster a more competent and efficient service. In addition to its bloated management, the EEC’s pay structure is alarming. I recall an article that revealed the SEC paid a cleaner E15 000, which is a staggering amount for such a position. This culture of inflated salaries permeates the organisation, further straining the financial resources of a company that claims to be in dire need of a tariff increase to keep the lights on. The EEC’s dire warnings about potential blackouts if the tariff increase is not granted are troubling.

Attribute

They attribute this to anticipated significant tariff hikes from ESKOM, their major supplier, which will render it difficult for the company to afford the electricity it needs. As a result, a staggering portion of the E8.5 billion required will be redirected to importing electricity rather than investing in new power stations or improving infrastructure. Ernest Mkhonta, the Managing Director, openly stated that the company is grappling with substantial operating losses. Recently, they secured a temporary overdraft facility of E90 million to maintain operations.

This is not a sustainable model; it merely postpones the inevitable reckoning. Mkhonta argues for a tariff revision to unlock additional funds for operations, but this is merely shifting the burden onto consumers who are already overtaxed. Moreover, Mkhonta’s claims about the depletion of cash reserves and the dire state of internal generation capacity due to low rainfall only underscore the need for innovative solutions rather than continued reliance on consumer tariff increases. The company has yet to provide a clear plan for sustainability beyond the two-year funding window they are pleading for. While Mkhonta highlights the unfortunate reality that some African nations are already experiencing prolonged blackouts, this should not serve as a justification for poor management practices or exorbitant executive pay.

Overhaul

Instead of merely seeking tariff increases, the EEC must undergo a thorough overhaul, including a reassessment of its leadership structure and financial priorities. EEC’s current trajectory is unsustainable, and its management practices need urgent reform. If the company is to survive and thrive, it must prioritise efficiency and accountability over bloated salaries and mismanagement.

Disgruntled consumer

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