Hill-Lewis welcomes new timeframes for public input into proposed electricity price

Cape Town Mayor Geordin Hill-Lewis has welcomed new timeframes set by the North Gauteng High Court that will allow more time for public input into the proposed price of electricity.

On Friday, the court found that the National Energy Regulator of South Africa (NERSA)’s, public participation process for the 2025/26 year to approve municipal tariffs to have been invalid following a challenge by AfriForum.

While the ruling does not set aside 2025’s tariff increase, Hill-Lewis said it’s a positive step for ratepayers countrywide, allowing for more transparency in future in the setting of the electricity price.

NERSA determines how much Eskom may charge municipalities for electricity and has to consider municipalities’ proposed tariff structures based on the bulk tariff.

But AfriForum complained that in 2025, the tariffs were not decided on proper cost studies and public participation had been limited.

The City of Cape Town made submissions in the case, and the court has now issued a provisional order adopting its timeline for a 31 January deadline forNERSA to publish increases granted to Eskom.

Municipalities will then have to submit their tariff applications by 30 March each year, with NERSA given until 5 May to make a decision on them and immediately provide reasons.

Hill-Lewis said that this will end the chaotic handling of municipal tariff applications.

“We are appreciative that the court accepted our arguments imposing a timetable on NERSA that brings to an end the regulator’s common practice of late decisions without reasons and only published after the municipal budget year has already started.”

Municipalities traditionally adopt budgets in time for a 1 July implementation, with a draft budget published three months prior.

“Cape Town has all along, only asked for timeous, rationale and sensible decisions from NERSA as one of a handful of municipalities that actually submits detailed cost of supply studies to NERSA each year.”

NERSA and all municipalities have been given until 18 November to indicate why the order should not be made final.

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