The Clock is Ticking: Why Your Municipal Electricity Bill is Set to Rise Again

Get ready for the next round of electricity price hikes. The National Energy Regulator of South Africa (Nersa) has officially started the process for the 2026/27 financial year, warning every licensed municipality and private electricity distributor that their tariff applications are due by 12 December 2025.

This annual ritual, which determines how much you’ll pay for power from July 2026, is happening under new, court-ordered rules designed to force transparency onto a traditionally opaque process.

A Strict Deadline with Real Consequences

Nersa’s message to municipalities is blunt: submit a complete application with a detailed cost-of-supply study by the deadline, or you will not be allowed to increase your tariffs next year. This hardline approach is a direct result of a recent legal defeat.

The regulator has been forced to bring its timeline forward by five months after civil rights group AfriForum successfully challenged its previous process in the Pretoria High Court. The old system, which saw applications published for comment only in May, was deemed unconstitutional due to its lack of meaningful public participation.

A Victory for Public Scrutiny

The court case revealed a startling position from Nersa. The regulator had argued that the detailed cost studieswhich break down what it actually costs a municipality to supply electricitywere confidential and too technical for the public to understand.

Judge Etienne Labuschagne sharply disagreed, questioning how the public could possibly comment on a price hike without knowing what it was based on. His ruling was a victory for consumer transparency, forcing Nersa to publish all applications and their supporting cost studies for a full 30-day public comment period.

This means that for the first time, residents and watchdog groups will be able to scrutinize the very data municipalities use to justify asking for more money.

The New, Transparent Timeline

Thanks to the court interdict, the process now has a clear, public-friendly structure:

• 12 December 2025: Municipalities must submit tariff applications to Nersa.

• 31 January 2026: Nersa must announce the bulk electricity price it buys from Eskom, a key cost driver for municipalities.

• 5 May 2026: Nersa must announce its final decision on all tariff applications.

This new timeline is provisional until 18 November 2025, allowing other parties to comment, but the core principle of transparency is now firmly established.

For South African households and businesses, this means the debate over your future electricity bill is about to move from behind closed doors into the public arena. The question is no longer just if prices will rise, but whether the reasons given will finally withstand public scrutiny.

{Source: Mybroadband}

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