Nersa confirm tariff increases remain valid despite AfriForum High Court judgment

Electricity tariff increases were not set aside by a recent court judgement declaring Nersa's participation processes invalid.

The National Energy Regulator of South Africa (Nersa) has reminded electricity users that, despite its public participation processes being declared unconstitutional, electricity tariffs will still be increased.

Nersa on Wednesday clarified that the judgment in favour of AfriForum’s application against the processes used to determine municipal electricity tariffs only stipulated adjusted timeframes for tariff adjustments to be applied for.

The Gauteng High Court judgment from 31 October ruled the processes used by Nersa to be unconstitutional and invalid, but the court did not set aside the tariff increases.

Nersa tariffs still in place

Judge Etienne Labuschagne explained in his order that setting aside the tariff increases could have unforeseen consequences which could prove more destructive than the tariffs themselves.

He stated that municipal budgets were interlinked with several other financial factors involving third parties.

“It is therefore important not to destabilise municipal revenue and to cause uncertainty in the financial markets.

“I therefore find it more appropriate not to set aside Nersa approvals of tariffs, despite the declaration of invalidity,” Labuschagne’s order read.

While AfriForum celebrated the ruling, Nersa clarified its position.

“AfriForum’s challenge focused on the adequacy of Nersa’s public consultation process during the evaluation of municipal tariff applications for 2025-26,” stated Nersa spokesperson Charles Hlebela

“It is important to emphasise that the judgment did not set aside any approved municipal tariff applications for the 2025-26 financial year; all tariff approvals remain valid,” he confirmed.

Application dates disputed

The high court also issued an interim order regarding the timelines for tariff increase submissions, as well as an instruction to establish a tribunal for municipal electricity matters.

Nersa are challenging the interim order on timelines as the dates do not align with the entity’s “administrative process”.

The ruling set 31 January as the date for Nersa to communicate bulk increases to Eskom and 30 March as the date for municipalities to submit their annual increase applications.

Nersa will then have until 5 May each year to finalise all municipal tariff applications, but the parties are due back in court on 18 November, as Nersa looks to have that interim order set aside.

However, a set of rules for tribunal proceedings has been formulated, which Nersa says will ensure disputes with municipalities are handled with a “transparent and fair approach, within a clear legal framework”.