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 court accepted the City of Cape Town’s argument that Nersa’s timelines come too late for municipal budgeting processes, and so the proposed timeline is now an order of the court in line with City proposals during the course of this application brought by Afriforum.
‘This final order makes it clear that Nersa cannot deviate from this court-ordered time table without approaching the courts for permission.
‘This is most welcome as it brings to an end Nersa’s delinquent handling of municipal tariff applications and the common practice of late decisions, without reasons, after the municipal financial year has already begun. This has made a mockery of complex budget calculations and public participation, which are all complete by the time Nersa decisions have arrived in the past.
‘Now Nersa will have to inform municipalities of decisions timeously, and publish the reasons immediately. This is a positive step for residents in all municipalities across South Africa, who will benefit from more transparency in electricity tariff-setting decisions,’ said Mayor Hill-Lewis.
