- NERSA has held its first tribunal sitting to address non-compliance by electricity licensees.
- Five municipalities received default orders following compliance audits.
- Licensees face potential penalties of up to R2 million per day for continued violations.
The National Energy Regulator of South Africa has formally operationalised its tribunal powers, marking a significant shift in regulatory enforcement within the electricity sector.
NERSA confirmed that its first tribunal sitting took place on 18 December 2025, during which non-compliance matters were heard against electricity licensees found to be in breach of licence conditions and National Rationalised Specifications standards. The tribunal was convened in terms of section 18 of the Electricity Regulation Act of 2006, as amended.
The move represents a decisive step in strengthening regulatory oversight and sends a clear signal that non-compliance by electricity licensees, including municipalities, will no longer be tolerated.
The matters brought before the tribunal stemmed from systemic compliance failures identified through NERSA audits. These included breaches of licence conditions, failure to comply with applicable NRS standards, contraventions of Electricity Regulation Standards, and the unlawful implementation of electricity outages.
NERSA’s audits revealed persistent and material non-compliance among certain distribution licensees. Key issues included failure to ring fence electricity distribution businesses, non-payment of bulk electricity accounts, lack of approved or implemented maintenance plans, non-compliance with quality of supply and service standards, failure to meet occupational health and safety requirements, and the execution of supply interruptions in ways that contravened regulatory standards and licence conditions.
In response, NERSA exercised its statutory authority to sit as a tribunal to hear non-compliance matters and, where necessary, issue formal notices or direct licensees to implement remedial actions within defined time frames.
A total of eight matters were heard during the sitting. Default orders were granted against Saldanha Bay Local Municipality, Rustenburg Local Municipality, Ekurhuleni Metropolitan Municipality, Kareeberg Local Municipality and Lephalale Local Municipality. Matters involving Greater Taung Local Municipality, Phokwane Local Municipality and Ndlambe Local Municipality were removed from the tribunal roll at NERSA’s request.
For cases concluded, non-compliant municipalities will receive formal notices directing them to comply with licence conditions or legislative requirements within two calendar months from the date of service.
NERSA has cautioned licensees that failure to comply with tribunal directives may result in escalation to adjudication. Under the Act, the regulator may impose administrative penalties of up to R2 million per day for each day that a contravention continues.
According to NERSA, the activation of the tribunal underscores that compliance with legislation, licence conditions, technical standards and regulatory instruments is mandatory. The regulator said it will act decisively to safeguard the integrity of the electricity supply industry and ensure consumers receive safe, reliable and lawful electricity services.
NERSA reaffirmed its commitment to fair, transparent and procedurally sound enforcement processes, conducted in line with gazetted tribunal rules, while holding all market participants and public entities accountable to the regulatory framework.
Author: Bryan Groenendaal
