- The National Energy Regulator of South Africa (NERSA) has issued a statement clarifying the recent High Court judgment involving the regulator and AfriForum NPC.
- The ruling, delivered by the Gauteng Division of the High Court on 31 October 2025, does not overturn or invalidate any municipal electricity tariff approvals for the 2025/26 financial year, NERSA confirmed.
According to the regulator, all approved municipal tariffs remain valid despite AfriForum’s legal challenge, which questioned the adequacy of NERSA’s public consultation process in reviewing municipal tariff applications. Read more
NERSA said it had conducted a “comprehensive” process that included a 30-day public comment period, during which it received and considered 131 written submissions. The regulator also coordinated with key government departments—among them the Department of Cooperative Governance and Traditional Affairs (CoGTA), National Treasury, and the Department of Electricity and Energy (DEE)—to ensure timely and well-supported submissions from municipalities.
As a result, all 177 municipalities submitted tariff applications based on cost-of-supply studies, in compliance with the Electricity Regulation Act of 2006. NERSA noted that this marked the first time in two decades that all municipalities had done so.
AfriForum had further asked the Court to impose strict timelines on NERSA’s tariff process, including deadlines for communicating Eskom’s bulk tariffs to municipalities by 31 January each year, municipal submissions by 30 March, and NERSA’s final approvals by 5 May.
The Court issued an interim order on these proposed timelines and set a return date of 18 November 2025 for all parties to file additional affidavits before a final decision is made. NERSA has indicated it will oppose the proposed deadlines, arguing they are not aligned with its internal administrative processes.
In a separate development, NERSA announced the approval of new Rules for Conducting Tribunal Proceedings under the Electricity Regulation Act. The regulator said the new framework will strengthen enforcement measures against municipalities that breach licence conditions, ensuring that disciplinary processes are fair, transparent, and legally sound.
Author: Bryan Groenendaal
