The National Energy Regulator of South Africa (NERSA) has confirmed a court-mandated and non-negotiable timetable for electricity tariff applications for the 2026/27 financial year, increasing compliance risks for electricity distributors and municipalities.
In a media statement issued after a workshop with licensed electricity distributors, NERSA says the revised tariff process follows a North Gauteng High Court judgment that requires strict adherence to statutory timelines, procedural fairness and public participation in tariff determinations.
Under the confirmed timetable, electricity distributors, including municipalities, must submit their tariff applications and supporting cost-of-supply (COS) studies by March 20. The applications will be published for 30 days of public comment. NERSA will then conduct its evaluation and, where required, public hearings.
Final tariff decisions must be concluded by May 5 to allow lawful implementation from July 1 in line with the municipal financial year.
NERSA says the High Court ruling removes the flexibility that previously allowed late submissions, delayed approvals or tariff roll-overs. Distributors are required to align council approvals, consultation processes and internal planning with the fixed regulatory schedule.
The regulator says COS studies are a mandatory component of tariff applications and must be published alongside proposed tariffs to enable meaningful public participation, as required by the court judgment.
NERSA also indicates that Eskom’s retail tariff structural adjustment process will be managed within the same court-mandated framework, noting that alignment is necessary because Eskom’s bulk tariffs feed directly into municipal tariff structures.
The regulator warns that failure to meet the prescribed deadlines could result in regulatory enforcement action, including findings of non-compliance with licence conditions.
