Residents across South Africa could soon see major changes in how municipal electricity price increases are decided. This follows a recent Gauteng High Court ruling that found the National Energy Regulator of South Africa (Nersa) acted unconstitutionally when approving municipal electricity tariff hikes without proper transparency or public participation.
The court highlighted that cost-of-supply studies, which help determine how much municipalities should charge consumers, were kept confidential and not shared for public scrutiny. This decision came after a legal challenge by AfriForum, and municipalities will now be required to follow stricter timelines and give the public a fair chance to engage before any future tariff increases are approved.
Why This Matters
Electricity bills directly affect households, businesses, and community services. For years, many residents have felt the pinch of rising electricity costs without clear explanations or accountability.
This ruling means:
- Greater transparency in how tariffs are calculated
- Public participation will be mandatory before price increases are approved
- Municipalities and Nersa must follow constitutional processes moving forward
Simply put — communities will no longer be left in the dark when tariffs rise.
This judgment has the potential to significantly reshape how electricity pricing is handled across South Africa. Municipalities will now be required to provide clear, transparent cost data when applying for tariff increases, ensuring greater accountability in the process. It also strengthens public oversight, giving residents and civil organisations the right to review and question how tariffs are set. Importantly, the ruling acts as a safeguard against unjustified and unaffordable increases by insisting that electricity pricing be fair and backed by proper evidence. With stricter timelines in place, municipalities will need to plan ahead and conduct proper public consultations before proposing new tariffs. While current prices remain unchanged for now, this ruling sets a vital precedent for protecting consumers and promoting fair, transparent governance in the nation’s electricity sector.