Parliament, Thursday, 30 April 2026 – The Portfolio Committee on Electricity and Energy received a briefing from Eskom on the national power utility’s annual performance plans and budgets for the 2026/27 financial year, including its presentation on winter outlook in which it reported a 341 days without loadshedding in the whole country.
In welcoming the briefing, the Chairperson of the committee, Ms Zama Khanyase, commended Eskom for this achievement. She said it’s a commendable progressive achievement looking at it in the light of the recent history of loadshedding the country experienced.
Dr Mteto Nyati, Eskom’s Board Chairperson, told the committee about the improvement in performance metrics, highlighting that the utility achieved 67% of its targets against the shareholders compact, from 59% in the previous year.
He said, currently, 22 out of 33 key performance indicators (KPIs) have been met. He reported a substantial reduction of 62% in diesel expenditure, attributing that to approximately R10 billion savings compared to the same period last year. He said that financial efficiency allows for a re-allocation of resources to critical areas within the organisation.
According to Dr Nyathi, Eskom forecasts no loadshedding for the upcoming winter season, even in scenarios involving unplanned outages. The committee heard that the planned maintenance for this period is set at approximately 5,000 MW, further supporting commitment to reliability.
Members of the committee raised concerns regarding the proposed 8.76% tariff increase. Eskom acknowledged this increase but stated that it is targeting R112 billion in cost efficiencies over the next five years.
The power utility said it aims to keep future price increases in single digits while balancing sustainability with affordability. In addition, the escalating municipal debt, which has reached R110 billion, was scrutinised. The power utility noted that while it has managed to reduce debt from metro municipalities, the increase is primarily from municipalities in the National Treasury debt relief program that have not complied with necessary conditions. It told the committee that it is collaborating with National Treasury to address these challenges.
The committee also questioned the justification for performance bonuses amid unmet key performance targets. Eskom recognised the ambitious nature of the targets and acknowledged the challenges faced in achieving them. The entity also stressed the significant progress made in operational performance.
Members of the committee raised concerns regarding employee costs, and salary increases that exceeded inflation rates. Eskom justified these adjustments as necessary for retaining skilled workers, while also accepting the need for cost containment in light of the economic situation and the high electricity costs faced by consumers.
The issue of cable theft and vandalism, which negatively impacts service delivery, was also highlighted by the committee. Eskom committed to exploring partnerships with law enforcement and local security agencies to tackle all crime related challenges.
The committee inquired about Eskom’s plans for grid modernisation and the integration of renewable energy into the system. Eskom reaffirmed its commitment to investing in renewable energy and infrastructure to enhance capacity and reliability across the energy grid.
The issue regarding the escalation of the municipal debt also came under the scrutiny of the committee with the growing municipal debt that has been reported to have increased to R110 billion. The committee asked the power utility on plans to address the issue. The power utility reported that while it has managed to reduce debt from metro municipalities, the increase in municipal debt is primarily from municipalities in the National Treasury debt relief program that have not complied with necessary conditions.
Ms Khanyase stated that the success of the power utility’s plans will be measured by implementation and its ability to self-sustain without bailouts, uninterrupted supply of electricity throughout the term and efforts to curb the rise in tariffs on time.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON ELECTRICITY AND ENERGY, MS ZAMA KHANYASE
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Yoliswa Landu (Ms)
Cell: 081 497 4694
E-mail: ylandu@parliament.gov.za
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