The National Energy Regulator of South Africa (Nersa) says all licensed municipalities and private electricity providers must submit their tariff applications for next year by 12 December 2025.
These must be accompanied by cost-of-supply studies, and municipalities that fail to comply with the watchdog’s requirements won’t be allowed to implement tariff adjustments in the 2026/27 financial year.
“Nersa announced today the commencement of the review process for municipal tariff applications for the 2026/27 financial year, which are set to be implemented on 1 July 2026,” the regulator said.
“Nersa has issued a formal notice to all licensed municipalities and private electricity distributors to submit their electricity tariff applications for the 2026/27 financial year by 12 December 2025.”
It added that it won’t process incomplete applications or those submitted by municipalities that fail to comply with prescribed timelines.
Citing the Municipal Finance Management Act of 2003, Nersa explained that any regulatory approval regarding municipal tariffs must be finalised by 15 March 2026.
“To meet this deadline, Nersa must commence its evaluation and public consultation processes during November and December 2025,” it added.
“All tariff applications, together with the cost-of-supply studies, will be published on the Nersa website and social media platforms for a period of 30 days to solicit written comments from affected parties.”
Civil organisation (Afriforum) requested that the court declare Nersa’s public participation process invalid and applied for an interdict to ensure specified timelines for future public participation processes.
Defending itself in court, the energy regulator argued that municipal electricity consumers have no right to know what it costs municipalities to supply them with electricity.
“Nersa argued that cost studies do not need to be published with applications, as they are confidential, and that their technical nature ensures that only their expertise is sufficient to interpret them,” said AfriForum.
However, this sparked criticism from Judge Etienne Labuschagne, who questioned how the public could be expected to provide contributions without the necessary information. Nersa had no answer.
Judge Labuschagne issued his ruling on Friday, 31 October 2025. He declared the regulator’s approval of tariff hikes without cost-of-supply studies invalid and unconstitutional.
“The Pretoria High Court today ruled in the interest of electricity consumers by upholding AfriForum’s position that Nersa did not follow proper processes in approving municipal electricity tariffs,” said AfriForum.
“The case was won with costs, and the court also granted AfriForum’s request for an interdict for specified timelines for future public participation processes.”
According to the civil action organisation, the new timelines will ensure that there is no shortage of public participation opportunities in future municipal tariff hike determinations.
The ruling stipulates that the energy regulator must announce the Eskom prices at which municipalities must purchase power by 31 January 2026.
The final tariff application decision must be submitted by March 2026 to allow sufficient public participation time, with Nersa’s final decision to follow by 5 May 2026.
However, the court order is provisional. Judge Labuschagne issued a rule nisi with a return date of 18 November 2025.
All interested parties, including 158 municipalities, have until that date to submit reasons as to why the timelines should not be approved.
Source: MyBroadband