Eskom has said that charity starts at home, which is why the pension fund for government employees and local banks must be used to bail it out.

This is according to the Rapport newspaper.

The utility also stated that staff cuts are not on the table in order to make its operations more sustainable.

A World Bank study from August 2016 found that Eskom was overstaffed by 66%. At the time, Eskom had 41,800 employees – while it only needed 14,200.

The number of staff Eskom required was calculated based on the amount of power it produces and distributes, compared to international standards for how many people it needs to be effective.

Eskom’s average cost per staff member was R740,235 per year, which the World Bank calculated as 20% of the utility’s total capital expenditure.

Loans

Eskom said the local borrowers which provided the R20 billion it needed to keep the lights on will also be asked for help in the next financial year.

These lenders are the Public Investment Corporation, which manages the assets of the Government Employees Pension Fund, and local banks – whose names have not yet been disclosed.

According to the Rapport, Eskom will increase its ask from R20 billion to R70 billion in the coming financial year. This is to cover the continued capital expenditure on the Medupi and Kusile power plants, and to finance the renewable energy programme.

Eskom also plans to issue international bonds in the coming financial year.