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NERSA approves tariffs for all 176 licensed electricity distributors for 2026/27

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  • NERSA has finalised and approved all 176 electricity distributor tariff applications for implementation from 1 July 2026.
  • The regulator completed the process in compliance with High Court deadlines and regulatory requirements.
  • Around 2,000 public comments were considered during the tariff approval process. 
  • Consumers supplied through municipalities or private distributors will now see adjusted rates reflecting the newly approved increases from next month, adding further pressure on household and industrial electricity costs across South Africa.

The National Energy Regulator of South Africa (NERSA) has completed the assessment and approval of tariff applications submitted by all 176 licensed electricity distributors across South Africa for the 2026/27 financial year. The approved tariffs, covering municipal and private electricity distributors, will take effect on 1 July 2026.

NERSA said the tariff review process was conducted in accordance with the provisions of the Electricity Regulation Act and in compliance with High Court orders issued on 20 February 2026 and 26 May 2026. The court directives required the regulator to finalise municipal tariff applications by 11 May 2026 and private distributor applications by 30 May 2026.

By the initial court deadline of 11 May 2026, NERSA had approved 159 of the 176 tariff applications received on 31 March 2026. Seventeen applications remained outstanding, including three that were subject to a separate court order allowing them to be considered outside the original deadline.

The remaining 14 applications could not be processed before the 11 May deadline. NERSA stated that proceeding outside the court mandated timeline without judicial approval would have breached the court order, potentially exposing the approved tariffs to legal challenges.

To address the delay, NERSA approached the High Court seeking an extension to complete the outstanding applications. On 26 May 2026, the court granted an extension until 30 May 2026. The regulator subsequently completed the assessment and approval of all remaining applications on 27 May 2026.

NERSA said all 176 tariff applications were evaluated through the prescribed regulatory process. As part of the review, the applications and accompanying cost of supply studies were published on the regulator’s website for public consultation.

The regulator received approximately 2,000 submissions from stakeholders and members of the public, all of which were considered during the decision making process.

NERSA reaffirmed its commitment to maintaining a transparent, accountable and legally compliant tariff approval process as South Africa continues efforts to strengthen the financial sustainability and operational efficiency of its electricity distribution sector.

Author: Bryan Groenendaal

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