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NERSA struggles to keep to timelines for municipal power tariff applications again

Soundbite: Deidré Steffens (English)
Soundbite: Deidré Steffens (Afrikaans)

AfriForum warns that the National Energy Regulator of South Africa’s (NERSA) struggle to adhere to the timelines set for municipal power tariff applications is once again threatening to stall this year’s process. This follows the energy regulator’s urgent court application this week to have a previous court order – which set new, fair timelines – reviewed. NERSA has indicated that it will not be able to adhere to these prescribed timelines.

The civil rights organisation approached the court in August last year to have NERSA’s public participation process followed for the approval of the 2025/2026 financial year municipal electricity tariffs declared invalid due to serious procedural flaws. AfriForum also requested the court to issue an interdict to ensure specified timelines for future public participation processes. Accordingly, it requested that clear dates be set for the approval of municipal tariff increase applications and that the following be determined:

  • when Eskom’s bulk purchase tariffs must be finalised;
  • when municipalities must submit their applications to NERSA;
  • how long the public should be given the opportunity to comment; and
  • by when NERSA must publish its final decisions.

The Pretoria High Court ruled in AfriForum’s favour on 31 October, ruling that NERSA’s approval for the implementation of municipal electricity tariffs without the use of proper cost-of-supply studies and public participation processes was unconstitutional. By December, AfriForum’s interdict for the implementation of specific timelines for all future municipal electricity tariff applications was also granted and stipulated that NERSA must strictly adhere to these timelines.

However, in its latest application, NERSA is now claiming that the prescribed timelines agreed to in December are not practically feasible and is therefore requesting an amendment to the court order. Although AfriForum is not formally opposing the application, the organisation has expressed serious reservations about it.

Deidré Steffens, Local Government Affairs Advisor at AfriForum, argues that NERSA does accept partial responsibility in its court documents. “However, it appears that the regulator does not accept full liability for its failure as supervisor and enforcer of the regulatory framework. In its application, NERSA refers, among other things, to Eskom, the holiday season and even the court ruling as contributing factors to why the timelines cannot be met,” she explains.

NERSA also argues that the court did not make sufficient provision for the “practical implications of the 2026/2027 financial year”.

According to NERSA’s application, the energy regulator proposes that the deadline for municipalities to apply for electricity tariff increases be extended to 17 April. “However, this does not allow sufficient time for a proper public participation process, and this was precisely the core reason why last year’s process was declared invalid,” Steffens emphasises.

NERSA’s proposed timelines mean that the publication of final decisions will only be done by 29 May. “This delay in the publication of NERSA’s decisions will put municipalities whose proposed tariff increase applications have been adjusted under immense pressure to adjust their budgets accordingly in a timely manner. It will also mean that there will not be enough time to deal with disputes or review applications from municipalities or other interested parties. Overall, the proposed timeline is unfeasible,” Steffens concludes.

The Cape Town Metropolitan Municipality and the South African Local Government Association (SALGA) also provided input regarding NERSA’s application.

The case will be heard in the North Gauteng High Court on 17 February 2026.

Breakdown of existing timelines (as approved by the court), NERSA’s latest adjusted timelines and AfriForum’s adjusted timelines following the latest NERSA application

Current deadline (according to court order) NERSA application AfriForum proposal
Notice on new bulk purchase tariff31 January13 March
Notice to municipalities to submit applications31 January17 April
Deadline for municipalities’ applications20 March17 April7 April
Publication of NERSA’s final decisions5 May29 May8 May

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