Lobby group AfriForum celebrated its court victory, after the Pretoria High Court ruled that the National Energy Regulator of South Africa’s (Nersa’s) approval for the implementation of municipal electricity tariffs without the use of proper cost studies and public participation processes was unconstitutional.

The case was won with costs and the court also granted AfriForum’s request for an interdict for specified timelines for future public participation processes.

AfriForum had argued that Nersa has been approving municipal electricity tariffs without the use of proper cost of supply studies and public participation processes.

“The new timelines in the municipal electricity increase process will ensure that there is no shortage of opportunities for the public to provide input on the proposed electricity tariff increases,” explained AfriForum manager of local government Affairs Morné Mostert.

AfriForum expressed confidence that Nersa’s fixed timelines will bring renewed stability to electricity tariff adjustments.

Last month, AfriForum secured a court order halting Eskom's proposed tariff increase agreement with Nersa, aimed at raising electricity prices significantly over three years.

AfriForum approached the court in August to have the public participation process followed for the introduction of the current financial year’s new municipal electricity tariffs declared invalid but not reviewed.

The organisation also requested the court issue an interdict to ensure specific timelines for future public participation processes.

Mostert pointed out that according to the court ruling, the energy regulator must announce Eskom’s latest tariffs at which municipalities must purchase power by January 31, 2026.

The final decision regarding tariff applications must also be submitted to Nersa by March 2026 to allow sufficient time for proper public participation.

Nersa’s final decision on each municipality’s new electricity tariffs must be finalised by May 5, 2026, he said.

The judge issued a rule nisi with a return date of November 18, requesting all interested parties, including all 158 municipalities, to submit reasons, if any, as to why these proposed timelines should not be approved.

“However, this rule does not overturn the decision on the constitutionality of Nersa’s processes,” he said.

Nersa had previously argued that cost studies should not be published with applications in every case, as they are confidential, but the judge ruled against this and found that all applications must also have a cost study attached to them.

“If an application is submitted without one, Nersa must stipulate it as such.”

Mostert highlighted that this ruling ensured that Nersa followed a process where consumers could have a proper and fair say in municipal electricity tariff increases and that Nersa and municipalities could not pull the wool over consumer’s eyes.

“As a regulator, Nersa should ensure that municipalities act within the framework of the relevant legislation and continuously consider the interests of consumers. They clearly test the limits of the law, but if they cross the line, AfriForum will ensure that action is taken against the regulator,” said AfriForum adviser on local government affairs Deidré Steffens.