- The Pretoria High Court has delivered a landmark ruling in favour of electricity consumers, finding that the National Energy Regulator of South Africa (Nersa) failed to follow due process in approving municipal electricity tariffs.
- The court upheld civil rights group AfriForum’s argument that Nersa’s approval of tariffs without proper cost studies and adequate public participation was unconstitutional.
The court awarded costs to AfriForum and granted an interdict setting out binding timelines for future public participation in tariff-setting processes. The new framework is intended to ensure that the public has ample opportunity to comment on proposed municipal electricity increases.
Under the ruling, Nersa must announce Eskom’s latest bulk electricity tariffs, which determine the prices municipalities pay for power, by 31 January 2026. Municipalities must submit their tariff applications to Nersa by March 2026, and the regulator must finalise all municipal tariff decisions by 5 May 2026.
The judge also issued a rule nisi, with a return date of 18 November 2025, inviting all interested parties, including 158 municipalities, to provide reasons why the proposed timelines should not be confirmed. This procedural step, however, does not affect the ruling on the unconstitutionality of Nersa’s previous process.
In its defence, Nersa had argued that cost studies attached to tariff applications were confidential and need not be published in every case. The court rejected this argument, ruling that every application must include a cost study, and that any submission lacking one must be clearly identified as such.
AfriForum hailed the judgment as a victory for all electricity consumers.
“This is not only a victory for AfriForum and its members, but for every person who pays for electricity,” said Morné Mostert, AfriForum’s Manager of Local Government Affairs. “The ruling ensures that Nersa follows a transparent process, giving consumers a fair say in municipal tariff increases. We are confident that these fixed timelines will bring greater stability to electricity pricing.”
Deidré Steffens, AfriForum’s Advisor on Local Government Affairs, added:
“As a regulator, Nersa must ensure municipalities act within the law and protect consumer interests. If it fails to do so, AfriForum will take further action to hold it accountable.”
The decision marks a significant step toward greater transparency and accountability in South Africa’s electricity tariff-setting process, reinforcing the public’s right to meaningful participation in regulatory decisions that affect their cost of living.
Link to the full judgement HERE: AfriForum-NPC-v-National-Energy-Regulation-of-SA-and-Others-Judgment-31.10.25-Latest
The judgement follows another major court win for the people of South Africa. A controversial R54 billion settlement agreement between Eskom and the National Energy Regulator of South Africa (Nersa), over a ‘mistake’, has been temporarily halted following pressure from civil rights group AfriForum. The agreement, which was set to be ratified by the Pretoria High Court today, would have led to electricity tariff hikes of nearly 9% annually over three years. Read more
AfriForum successfully lobbied Eskom to move the case from the uncontested to the contested roll, opening the door for public participation and legal challenges. The organisation argues that the settlement lacks transparency and could be deemed unlawful and unreasonable.
“To say that the public, who must fund the decision, has no interest in the matter shows Eskom’s blatant arrogance,” said Deidré Steffens, AfriForum’s advisor for Local Government Affairs. “It can no longer be tolerated and blindly funded.”
Author: Bryan Groenendaal
