The Council of the City of Ekurhuleni Metropolitan Municipality recently resolved to adopt and implement the National Energy Regulator of South Africa (NERSA)’s approved electricity tariffs effectively from 1 July 2026, while undergoing a legal review process.
This Council decision follows intense engagement between the city and NERSA regarding the implementation of electricity tariffs based on the consideration of affordability for both the city as the supplier and distributor of electricity and the customers as the consumers.
Initially, the city had proposed an increase of 9.01% to NERSA for the previous financial year, which is in line with the average Eskom related increases approved by NERSA for the current financial year.
However, following its approval and determination processes, NERSA approved different tariffs to those submitted by the city. The city’s evaluation process identified inconsistencies on the NERSA approved tariffs, in that some were higher than Council approved tariffs, some were lower while others were aligned.
The municipality objected to Nersa’s approved tariffs in May 2026, based on the assessment conducted by the city that these inconsistencies will result in some customers experiencing above average increases on tariffs while others will be significantly lower.
The city further provided NERSA with a detailed analysis highlighting the tariff discrepancies and their potential impact on customers and municipal operations. To which NERSA responded with an objection, citing that in terms of the National Energy Regulator Act, NERSA’s tariff decision is final and binding on the city and its customers and cannot be amended by NERSA. The City was advised by Nersa that the decision of the Energy Regulator is final and binding unless reviewed through a judicial application. Council has resolved to sought relief from High Court for review of its 2026/27 Electricity Tariffs.
To this the city wishes to assure its customers that every effort has been made to protect customer interests throughout this process and to ensure electricity tariffs remain fair, transparent and cost effective.