10 July 2025
Speaker this budget vote debate No. 10 for Electricity and Energy is unique in comparison to other budget votes as the Portfolio Committee on Electricity and Energy is a new Portfolio Committee created in the 7th Parliament. This is due to the fact that Ministry and Department of Electricity and Energy are newly empowered to implement electricity legislation and implement regulations. This is critical as the sector is a crucial driver of economic development and job creation. Moreover, it has made a steady recovery from the many days of load shedding. However, much more needs to be done to ensure security of supply of electricity and energy to not only end load shedding, but to increase generation, transmission and distribution to enable local beneficiation, local industrialisation and micro economic development.
In introducing the Budget Vote Report it is important that we acknowledge the presentation by the Department of its Annual Performance Plan, Budget and Programmes. The Department has a number of entities which report to the Department such as Eskom, National Energy Regulator of SA (NERSA), South African Nuclear Energy Corporation (NECSA), SA National Energy Development Institute (SANEDI), National Nuclear Regulator (NNR) and the National Radioactive Waste Disposal Institute (NRWDI) which also presented their Annual Performance Plans to the Committee.
The budget and programmes of the Department are geared towards ensuring security of supply of the different energy carriers in the short, medium and long term. For the financial year 2025/2026 the Department has been allocated some R6.7 billion which increases to R7.1 billion over the medium term. This is not a small budget and is geared to fund the five programmes of the Department as well as transfers to the entities. The Administrative programme is budgeted at R220 million which is less than 4% of the budget which means that the bulk of the budget is geared towards programmes engaged in delivery and for the entities to implement the programmes and projects. There are far too many people in senior management positions which are acting and it is critical that the Department fills the senior management positions with suitably skilled and qualified candidates to ensure the successful implementation of programmes.
Programme 2 with a budget of R67.1 million is geared towards Energy Planning and Policy development. This is critical in a sector which is capital intensive with long lead times for projects with bankable business plans to become operational. However, to achieve its outcomes based approach the Department will ensure the finalisation and implementation of the Integrated Energy Plan, the Integrated Resource Plan 2025 and the Gas Masterplan. These plans will create the pathway and certainty towards security of supply of electricity and energy. The Department will also ensure the alignment of national, provincial and municipal energy plans which seeks to address the current fragmented planning and policy misalignment.
Programme 3 the Energy Programme and Projects has the largest budget of R4.66 billion. Ninety percent of the budget for Programme 3 is dedicated to completing the Integrated National Electrification Programme which since 1994 has provided electricity connections to historically disadvantaged communities to correct the historical injustice of apartheid. By the end of this financial year and through the Department restructuring the programmes it is expected that some 96% of homes will be connected to the grid and distribution networks to receive a reliable electricity supply at the cheapest possible price. Energy poverty must be eradicated and should have no place in our transformation project.
Programme 4 with a budget of some R 1.54 billion deals with the important areas of nuclear energy regulation and management. This area is crucial as the Department and its entities have international commitments for regulation. More importantly the domestic development of nuclear energy for electricity generation is a critical part of the green energy programme and the just energy transition. It is able to add to the base load electricity supply like the Koeberg Power Station.
Programme 5 with a budget of R43.1 million is dedicated for State-Owned Companies Support Services. It is crucial that the Department support the State Owned entities to carry out their mandate and implement the programmes and projects of the Department.
It is pleasing to note that the entities have shown improved performance and audit outcomes. However, given the strategic importance of the sector for electricity and energy security of supply as well as inclusive economic growth and job creation it is imperative that further improvement in performance occurs and targets are achieved. Major financial transfers to the entities need to be accompanied by the shareholder compacts which also need to include an accountability framework for the financial transfers. These financial transfers must be accounted for in the quarterly reports. Every Rand of the budget must result in qualitative and impactful spending and people in our communities must feel and see improvement. Transformation is about changing the lives of the people for the better.
The Committee has approved the Budget Vote Report for the 20252/6 financial year. The Portfolio Committee hereby wishes to table the Budget Vote Report of the Portfolio Committee on Electricity and Energy to the House for consideration and approval.
Thank you.