Please note: Nersa has withdrawn “Media statement – NERSA begins Municipal Tariff Applications review process for 2026/7 financial year”.
- The National Energy Regulator of South Africa (NERSA) has officially begun the review process for municipal electricity tariff applications for the 2026/27 financial year.
- The tariffs approved through this process are expected to take effect on 1 July 2026.
In a notice issued to all licensed municipalities and private electricity distributors, NERSA instructed applicants to submit their tariff proposals—along with mandatory Cost of Supply (COS) studies—by 12 December 2025. The regulator warned that municipalities failing to meet the deadline or to provide complete applications will not receive tariff adjustments for the 2026/27 financial year.
The launch of this review process comes shortly after a landmark Pretoria High Court ruling earlier this month, in which the court found that NERSA had failed to follow due process in approving municipal electricity tariffs. The ruling, brought forward by civil rights organisation AfriForum, held that NERSA’s approval of tariffs without proper cost studies and adequate public participation was unconstitutional. The judgment has placed additional pressure on the regulator to ensure strict compliance and transparency in its tariff-setting procedures. Read more
NERSA stressed that its timelines are designed to align with Section 43(2) of the Municipal Finance Management Act (MFMA), which requires that regulatory approvals affecting municipal tariffs be finalised by 15 March of the relevant financial year. To meet this statutory deadline, the regulator will begin evaluations and public consultations in November and December 2025.
All submitted tariff applications and accompanying COS studies will be published on NERSA’s website and social media platforms for a 30-day public comment period. Written submissions from affected stakeholders, along with internal analysis, will inform NERSA’s final decisions.
The regulator reaffirmed its commitment to ensuring transparency, regulatory certainty, and consumer protection through lawful and predictable tariff-setting processes.
Author: Bryan Groenendaal
