Nersa completes its consideration and approval of electricity distributors’ tariffs
The National Electricity Regulator of South Africa (Nersa) announced on Sunday that it had completed the evaluation and approval process for all the tariff applications from licensed municipal and private electricity distributors. These numbered 176, and were for the 2026/27 financial year, coming into effect on July 1.
The regulator assured that the processing of these applications was done in accordance with the Electricity Regulation Act and with orders issued by the High Court on February 20 and May 26 this year. These rulings specified that municipal distributors’ tariffs had to be finalised and approved by May 11, and those of private distributors by May 30.
The 176 tariff applications, Nersa reported, had been submitted by March 31 this year. By May 11, 159 of these applications had been approved. Of the 17 outstanding, three had been granted a separate court order, allowing them to be considered beyond the terminal date of May 11 laid down in the original court order. That left 14 outstanding.
“Nersa could not proceed to consider the 14 applications outside the judicially set timelines, as this would have constituted a breach of the court order and a matter of contempt of court,” explained the regulator. “In addition, proceeding outside the timelines would have exposed the validity of the approved tariffs.”
Consequently, Nersa requested the High Court to grant a deadline extension, so that it could consider the 14 remaining applications. On May 26, the High Court granted that extension, until May 30. The regulator completed its evaluation and approval process for these 14 applications on May 27.
In line with the regulatory process, the tariff applications and associated cost of supply studies were published on the Nersa website, to allow public comment. Some 2 000 comments were received, which the regulator assured were considered when it made its decisions. Its decisions, and the reasons for those decisions, would in due course be made available on its website.
“Nersa remains committed to ensuring that tariff approvals are transparent, accountable and legally compliant,” it stated.
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