- Licensed electricity distributors must submit tariff applications by 20 March 2026.
- All tariffs must be approved by NERSA no later than 5 May 2026 following public consultation.
- Failure to comply will constitute a breach of licence conditions and applicable energy legislation.
The National Energy Regulator of South Africa has confirmed the process and timelines for the submission and approval of electricity tariff applications for the 2026 27 financial year following a workshop with licenced distributors and municipalities held on 5 December 2025.
The workshop outcomes were shaped by the 4 December 2025 judgment of the North Gauteng High Court which introduced revised and binding deadlines for the approval of Eskom tariffs and the submission and approval of municipal and private distributor tariffs. NERSA noted that while the court prescribed timelines present significant operational challenges for both municipalities and the regulator, all parties have agreed to comply with the ruling.
NERSA emphasised that adherence to the deadlines is essential to enable a lawful and meaningful public consultation process in line with the Promotion of Administrative Justice Act of 2000. The court has further directed that the regulator may not consider or approve late tariff applications for implementation in the same financial year, as this would undermine the compulsory consultation process and delay regulatory decisions.
All licenced distributors are required to submit their 2026 27 electricity tariff applications on or before 20 March 2026. Each application will be published together with the associated cost of supply studies to support transparency and stakeholder engagement. NERSA confirmed that all tariff applications must be finalised and approved by 5 May 2026, with implementation scheduled from 1 July 2026.
Given the importance of the Eskom Retail Tariff Structural Adjustment in the formulation of municipal tariffs, NERSA will engage directly with Eskom to fast track the submission and processing of the ERTSA application. This step is intended to ensure compliance with the Municipal Finance Management Act and to uphold the rule of law in line with the High Court ruling.
NERSA cautioned that failure to apply for tariff approval constitutes a breach of licence conditions, a violation of the Electricity Regulation Act and may amount to contempt of court. Section 15 of the Act prohibits licensees from charging tariffs that have not been approved by the regulator. Licenced distributors were also reminded that current tariffs will expire on 30 June 2026 and that no automatic extensions will be granted, as tariffs are approved annually.
The regulator stated that the confirmed timelines are aimed at strengthening regulatory certainty, improving planning across the electricity value chain and ensuring timely tariff implementation for the upcoming financial year.
Author: Bryan Groenendaal
