AfriForum court victory: Nersa’s process for approving electricity tariffs unconstitutional
The Pretoria High Court today ruled in the interest of electricity consumers by upholding AfriForum’s position that the National Energy Regulator of South Africa (Nersa) did not follow proper processes in approving municipal electricity tariffs. This court ruled that Nersa’s approval for the implementation of municipal electricity tariffs without the use of proper cost studies and public participation processes is unconstitutional.
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. The new timelines in the municipal electricity increase process will ensure that there is no shortage of opportunities for the public to provide input on the proposed electricity tariff increases.
According to the court ruling, the energy regulator must announce Eskom’s latest tariffs at which municipalities must purchase power by 31 January 2026. The final decision regarding tariff applications must also be submitted to Nersa by March 2026 to allow sufficient time for proper public participation. Nersa’s final decision on each municipality’s new electricity tariffs must be finalised by 5 May 2026.
The judge issued a rule nisi with a return date of 18 November, requesting all interested parties, including all 158 municipalities, to submit reasons, if any, why these proposed timelines should not be approved. However, this rule does not overturn the decision on the constitutionality of Nersa’s processes.
Nersa had previously argued that cost studies should not be published with applications in every case, as they are confidential, but the judge ruled against this and found that all applications must also have a cost study attached to them. If an application is submitted without one, Nersa must stipulate it as such.
“This is not only a victory for AfriForum and its members, but for every person who pays for electricity. This ruling ensures that Nersa follows a process where consumers can have a proper and fair say in municipal electricity tariff increases and that Nersa and municipalities cannot pull the wool over consumer’s eyes. AfriForum is confident that these fixed timelines will bring renewed stability to electricity tariff adjustments,” says Morné Mostert, AfriForum’s Manager of Local Government Affairs.
“As a regulator, Nersa should ensure that municipalities act within the framework of the relevant legislation and also continuously take into account the interests of consumers. They clearly test the limits of the law, but if they cross the line, AfriForum will ensure that action is taken against the regulator,” says Deidré Steffens, AfriForum’s Advisor on Local Government Affairs.
The latest court ruling is the third consecutive victory that AfriForum has achieved in court against Nersa this month. Read more about AfriForum’s victory in Rustenburg and Phalaborwa.
