In terms of section 172 (1)(a) of the Constitution, the court declared invalid Nersa’s public participation process for 2025/26 municipal tariff applications, ordering that Nersa must:

• By 31 January each year, inform municipalities of increases granted to Eskom and other generators
• Consider and publish every municipality’s cost-of-supply study and tariff application for public participation
• Finalise decisions on all municipal tariff applications by 5 May, and simultaneously publish the reasons for each decision

The City made recommendations to the court for revised Nersa timeframes during the course of the application brought by Afriforum. The court and applicants accepted these submissions, which now underpin the court order.

‘This is a positive step for residents in all municipalities across South Africa, who will benefit from more transparency in electricity tariff-setting decisions.

‘The order also halts Nersa’s chaotic and delinquent handling of municipal tariff applications. We are appreciative that the court accepted our arguments, imposing a timetable on Nersa that brings to an end the regulator’s common practice of late decisions, without reasons, after the municipal financial year has already begun, and after all budget calculations and public participation is long done. 

‘Now Nersa will have to inform municipalities of decisions timeously, and publish the reasons immediately. Cape Town has all along asked only for timeous, rational decisions by Nersa, as one of a handful of municipalities that actually submits detailed cost-of-supply studies to the regulator each year in our efforts to run a sustainable, reliable, and dynamic electricity service for Capetonians,’ said Mayor Hill-Lewis.

A ruling was issued by the court for Nersa or other respondents to show cause why the order should not be made final by 18 November.

End