The Portfolio Committee on Electricity and Energy has noted with concern that the Department of Electricity and Energy’s annual performance plan for the 2025/26 financial year reported a 96% expenditure of its allocated budget while achieving only 61% of its performance targets.
Briefing the committee, the Department of Electricity and Energy’s Director General, Mr Thabo Kekana, said the department would account for both its achievements and its shortcomings. “We are here to account for what we have delivered and what we have not delivered. For the first time, the department is accounting to the committee for a full year of operation as a fully fledged department,” said Mr Kekana.
Minister of Electricity and Energy Dr Kgosientsho Ramokgopa described the department’s 2025/26 performance, with 61% of targets met, as “less than flattering” and a significant underperformance. “Achieving 61% of our performance indicators is, by any stretch of the imagination, a gross underperformance. While there are reasons for this, including our inability to deliver the Integrated Energy Plan (IEP), I do not believe it is acceptable for a department to operate at that level,” said Dr Ramakgopa.
In its response, the committee sought to understand the primary causes of the department’s R171 million underspending and the corrective measures being implemented to avoid a recurrence. In response, the Minister attributed a significant portion of the underspending to delays in filling critical vacancies while the department was establishing itself as a stand-alone entity. “A large part of the underspending is linked to our inability to fill permanent positions. We are now moving with greater urgency, and a number of critical appointments will be finalised soon,” said the Minister.
Members also questioned approximately R271 million in irregular expenditure and R50 million in unauthorised expenditure, seeking details on remedial action, recovery processes and consequence management.
The Minister said that the department is busy redesigning its operating model and establishing a dedicated project management unit under the leadership of the Director General to strengthen procurement oversight, improve efficiency and ensure value for money. “We are redesigning the way the department operates. The establishment of a dedicated project management unit will assist us in dealing with procurement challenges, efficiency concerns and issues relating to value for money,” said Dr Ramokgopa.
The committee also scrutinised travel and subsistence expenditure amounting to R47.9 million. The department explained that the costs were linked to programme implementation and oversight activities, particularly support provided to more than 200 municipalities implementing electrification and infrastructure projects across South Africa.
Regarding electrification, committee members noted that during oversight visits they have found households still using off-grid solar systems despite being located near existing grid infrastructure. They believe these households should have already been connected to the electricity grid and that the situation highlighted weaknesses within the Integrated National Electrification Programme (INEP).
The department acknowledged shortcomings in the programme. “The criticism of the electrification programme is valid. We are undertaking a comprehensive review of the programme, particularly in relation to the high cost of grid connections in remote areas. We will return to the committee with proposals aimed at improving efficiency and accelerating household connections,” said the Minister.
The committee also raised the problem of the slow pace of electrification, noting that while 111 780 households had been connected during the reporting period, more than 1.5 million households still remain without electricity.
Committee member Ms Fasiha Hassan had concerns about the department’s ICT infrastructure refresh programme, which requires approximately R100 million over the next three years. She questioned whether the funding had been secured from National Treasury. She also raised concerns about the unresolved material irregularity relating to the solar water-heater programme, the status of units under litigation and consequence management measures.
Ms Hassan further questioned the delays in finalising both the IEP and the Gas Master Plan, stressing the importance of policy certainty for investment and energy security. “We really need to finalise the Gas Master Plan. Industry requires certainty and a clear policy framework. It is a matter that is long overdue,” Ms Hassan said.
The department replied saying that no additional ICT funding had yet been secured from National Treasury, but that approximately R25 million in savings and surpluses had been identified for priority ICT initiatives. The department further confirmed that the Gas Master Plan would be published before the end of October 2026.
As for the Integrated National Electrification Programme, Dr Ramokgopa said the department is redesigning it to leverage economies of scale, lower connection costs and unlock additional funding. “By aggregating projects into a larger programme, we can leverage greater funding, reduce costs through economies of scale and accelerate household connections. We will return to the committee with a redesigned model aimed at addressing the electrification backlog,” he said.
Committee members also questioned the department on municipal electricity distribution challenges, the implementation of Section 34 generation determinations, electricity planning and measures to improve future performance.
Committee Chairperson Ms Zama Khanyase welcomed the department’s commitment to address the challenges identified during the meeting and the progress made in finalising key policy instruments. “The committee welcomes the announcement that the Gas Master Plan is expected to be released before the end of this month. The plan is critical for ensuring policy certainty and guiding future investment in the energy sector. The committee looks forward to its publication and will continue to exercise oversight over the department’s performance and implementation of its commitments,” said Ms Khanyase.
Yoliswa Landu
2 October 2026
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