The North Gauteng High Court has adopted the City of Cape Town’s proposals to ensure that the National Energy Regulator of South Africa (NERSA) issues municipal electricity tariff decisions earlier each year, providing greater regulatory certainty for local distributors.
The judgment, delivered on October 31, follows an application by the City of Cape Town and AfriForum challenging the timing of NERSA’s tariff approval process for the 2025/26 financial year.
The court found that NERSA’s implementation of its public participation process for the 2025/26 municipal tariff applications was constitutionally invalid under Section 172(1)(a) of the Constitution. However, the court did not set aside the tariffs already approved for the 2025/26 financial year, which remain in effect.
Instead, the court issued an interim order calling on NERSA and other respondents to show cause by November 18 why the order should not be made final. The judgment also adopted the city’s proposed timeline to align tariff decisions with municipal budgeting cycles:
- By January 31 each year, NERSA must notify municipal licensees of Eskom’s bulk-tariff guideline
- By March 30, municipalities must submit their tariff applications
- By May 5, NERSA must finalise and publish its decisions
The order further requires NERSA to publish each municipality’s application and cost-of-supply study,
The City of Cape Town welcomed the judgment, saying it will “ensure predictable and transparent regulation” and prevent tariff delays that disrupt municipal revenue planning.
