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High Court Rules Nersa’s Municipal Tariff Process Unconstitutional With Binding Deadlines

Existing 2025/26 tariffs remain in place pending an 18 November hearing inviting responses on making the order final.

Overview

  • Judge Labuschagne found Nersa’s public participation for 2025/26 municipal electricity tariffs invalid under the Constitution, citing late notices and withheld information.
  • Nersa must notify municipalities of Eskom bulk increases by 31 January, receive tariff applications with cost-of-supply studies by 30 March, and finalise decisions with published reasons by 5 May.
  • The court ordered publication of each municipality’s application and cost-of-supply study for public comment, rejecting Nersa’s confidentiality claims over these documents.
  • A rule nisi keeps the new timetable in force while Nersa and other respondents show cause by 18 November, with all 158 municipalities able to file submissions.
  • The court accepted the City of Cape Town’s proposed timetable, with the mayor welcoming greater transparency and predictability after instances of approvals that allowed no time for public input, including Mogale City.