The Draft total 2025/26 Energy Budget over the medium term of R71,2 bn in capital and operational expenditure shines the spotlight on enhanced service delivery such as streetlighting enhancements and the multi-year refurbishment of the Steenbras power plant totalling more than R1,1 bn. Other investments to enhance energy security and sustainability such as the solar PV programme and investment in own-build solar PV plants continue. City customers are expected to see an overall average increase in electricity tariffs of only 2% despite Eskom’s municipal increase of 11,32% due to the City’s tariff reform efforts. Lower income customers continue to benefit through the tariff reform.
‘Our Draft Energy budget, totalling more than R71,2 billion over the next three years, speaks to our efforts to invest in streetlighting, to curb energy theft and vandalism, to plan for the growing energy needs of Cape Town in a more affordable and sustainable manner. The budget priorities also ensure that we are diversifying our energy resources to reduce the impact of Eskom’s price increases, the primary driver of energy tariff increases, and to bring greater energy security for our residents and businesses.
‘Over the next three years, our capital spend reaches R4,5 billion in total. For the immediate new budget year of 2025/26, we’re looking at a R1,3 billion capital expenditure programme including R75,5 million on our street- and public lighting programme. This includes the more efficient LED metro-wide roll out. The allocation in the 2026/27 grows to R87,5 million with a target of LED replacements of more than 2 860 lights per year. We’re also focusing on making sure that our low-income and most vulnerable residents have access to electrification where feasible with an allocation of R25,7 million over the next two years in informal settlements and backyarders. In older existing informal settlement areas on City-land, in City-supplied areas, almost 100% of informal settlements have been electrified.
‘Major investments, totalling more than R1,1 billion over three years also continue in our Steenbras plant. It helps to reduce tariff cost impacts when Eskom prices are at its highest as well as helping to protect our customers with up to two stages of load-shedding where possible. Plans to offer protection of up to four stages where feasible are well under way. The Steenbras refurbishment, together with our solar  own-build and commercial and residential programmes, lays the foundation for the enhanced energy security, based on more affordable and cleaner resources, we are working toward’, said the Mayoral Committee Member for Energy, Alderman Xanthea Limberg.
Comment on the City’s tabled budget before 2 May 2025.
Submit comments via:
Email:Â Budget.Comments@capetown.gov.za
Online: www.capetown.gov.za/collaborate or www.capetown.gov.za/HaveYourSay
Through your Subcouncil offices
Verbal comments: Phone 0800 212Â 176
