Ahead of the 2026 Budget that will be delivered on February 25, the Energy Council of South Africa has called on Finance Minister Enoch Godongwana to prioritise electricity grid delivery and fiscal support for reform in the power sector.

The council says it believes power sector reform is the foundation for economic growth and job creation in South Africa, especially considering the large amount of investment needed in transmission and distribution infrastructure.

Energy Council CEO James Mackay says energy security remains the single-most significant constraint to the Government of National Unity’s priorities, as outlined by President Cyril Ramaphosa in his 2026 State of the Nation Address, which comprise inclusive economic growth, job creation, lowering cost of living and building a capable State.

“While it is important to acknowledge the success in overcoming loadshedding and the important coordination role that the National Energy Crisis Committee has played, delivering on reform implementation to 2030 will be a monumental task.

“Numerous economic and system risks must be managed under the Department of Energy and Electricity (DEE), which, although only having been formed a year ago, is building positive momentum [that should continue],” Mackay states.

He adds that while reform progress continues, adequate fiscal support for the electricity sector is critical to achieving the targets set out by the DEE under government’s Medium-Term Development Plan to 2029.

“While the Budget should provide clear funding signals for transmission and distribution upgrades, capacity building and a sustainable Eskom unbundling is critical to sector stability.

“Private sector investment is well-positioned to respond to clear and competitive price signals through the new wholesale market to be launched in 2026. This will, however, only be realised if supported by a clear and phased transition plan to 2030,” Mackay emphasises.

He adds that a reliable and affordable electricity supply remains essential for economic growth and providing meaningful jobs for South Africa’s youth.

According to the council, the electricity sector should be the single-biggest investment focus over the next decade, both in new capital works and in complex public sector obligations such as the decommissioning of end-of-life coal assets and the recovery of maintenance backlogs at the municipal level.

“No country has successfully delivered an energy transition without clear support from the fiscus and close collaboration with the Ministry as the policy authority. We urge that Godongwana highlight and strengthen this critical relationship between National Treasury and the DEE,” Mackay concludes.