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High Court Rules Nersa’s Municipal Tariff Process Unconstitutional, Sets Fixed Deadlines

The order takes effect immediately on a provisional basis pending an 18 November court date.

Overview

  • Judge Labuschagne found Nersa’s 2025/26 approvals breached constitutional public-participation requirements by issuing late notices, withholding cost-of-supply studies and limiting proper publication.
  • Nersa must by 31 January notify municipalities of Eskom and other generator increases, municipalities must file applications with cost-of-supply studies by 30 March, and final decisions with reasons are due by 5 May.
  • The court ordered Nersa to publish each municipality’s cost-of-supply study and tariff application for comment, rejecting the regulator’s claim that the studies are confidential.
  • Existing 2025/26 municipal tariffs remain in place to avoid fiscal disruption, even as the court’s timelines and transparency measures take immediate effect.
  • AfriForum brought the case and the City of Cape Town’s proposed timetable was adopted, with a rule nisi giving Nersa and other respondents until 18 November to show why the order should not be made final.