The National Energy Regulator of South Africa (NERSA) has begun its review process for municipal electricity tariff applications for the 2026/27 financial year with approved tariffs expected to take effect on July 1, 2026.
On November 13, NERSA informed all licensed municipalities and private distributors that tariff applications must be submitted by December 12, and must include a cost of supply (COS) study. The regulator warns that “failure to comply with these requirements will result in no adjustment being made to the licensee’s electricity tariffs for the 2026/27 financial year”.
The tighter timelines follow the North Gauteng High Court’s October 31 judgment, which adopted the City of Cape Town’s proposals requiring earlier municipal tariff decisions. The case, brought by the city and AfriForum, highlighted delays in NERSA’s 2025/26 tariff cycle and the need for greater regulatory certainty for local distributors.
NERSA notes that, in line with Section 43(2) of the Municipal Finance Management Act, all approvals must be finalised by March 15, 2026. To meet this statutory deadline, evaluation and public consultation will run in November and December 2025.
“Tariff applications, coupled with the COS, will be published on our website for 30 days to obtain written comments from affected parties,” the regulator says.
