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A legal battle is looming over Nelson Mandela Bay’s controversial electricity tariffs after the DA announced on Wednesday it would seek an urgent interdict to stop the metro from implementing a new flat-rate pricing system that has driven up electricity costs.
The challenge targets the municipality’s decision to abolish its inclining block tariff, under which households paid progressively more per unit as consumption increased, and replace it with a flat rate of R4.50 per kilowatt-hour which came into effect on July 1.
The change, approved as part of the municipality’s 2026/2027 budget, has resulted in the steepest increases falling on households consuming fewer than 250 units a month.
DA MPL and Bay mayoral candidate Retief Odendaal announced the decision at a media briefing attended by the party’s Eastern Cape leader, Andrew Whitfield, and spokesperson in the province, Georgina Faldtman.
Odendaal said the party would approach the high court in Gqeberha to seek an urgent interdict to stop the city from implementing the revised tariffs for domestic consumers.
“By removing this more affordable tariff, the municipality has effectively increased the cost of electricity for many households by approximately 25%-30%.
“This is far higher than the publicly communicated average tariff increase of 10.95%,” he said.
Odendaal said the tariff changes were unconstitutional because the municipality failed to adequately disclose the impact of scrapping the inclining block tariff during the mandatory public participation process, leaving residents unaware that lower-consuming households would bear the biggest increases.
“We are instituting legal proceedings arguing that the municipality’s adopted electricity tariff increase is based on a fundamentally flawed public participation process.
“The ANC/EFF-led coalition of chaos government’s decision to abolish inclining block electricity tariffs was also never communicated to the public and has resulted in a substantial increase for many households, particularly households using less than 300kWh per month.
“The consultation process was inadequate, with public meetings held over just three days, many during office hours, limiting meaningful public participation.
“We also believe that the municipality was fully aware that the scrapping of the inclining block tariffs and moving to a base cost would unduly prejudice certain categories of residents.
“The anticipated impact of this proposal was purposely and intentionally hidden from consumers and not disclosed during compulsory public participation processes,” Odendaal alleged.
Metro spokesperson Sithembiso Soyaya noted the DA’s announcement.
He said the municipality had yet not been served with court papers and was therefore not in a position to comment on the specific allegations levelled by the DA.
“Once the application has been received, it will be carefully considered by the municipality’s legal team, and the appropriate legal process will be followed.”
Soyaya said the city maintained that the budget for the current financial year, including the approved electricity tariffs, was developed and adopted in accordance with the prescribed legislative and regulatory framework.
“This process included the publication of the draft budget and tariffs for public comment, public participation conducted in line with the Municipal Finance Management Act and the Municipal Systems Act, consideration of stakeholder inputs, adoption by council, and subsequent approval by the National Energy Regulator of South Africa (Nersa).
“The approved tariff structure, including the migration from the inclining block tariff to a flat tariff for certain domestic prepaid and credit customers, forms part of the approved electricity tariff framework.
“This restructuring was undertaken to align the municipality’s tariffs with regulatory requirements and cost-of-supply principles.”
Soyaya acknowledged that the tariff changes would affect customer groups differently, but said the municipality remained committed to engaging residents and explaining how the new pricing structure would be implemented.
He said the metro recognised the financial strain being experienced by households and businesses, but had to balance affordability with the long-term financial sustainability of its electricity network
“Revenue generated through approved tariffs is essential to support the operation, maintenance, refurbishment and upgrading of critical electricity infrastructure to ensure a reliable and sustainable supply.”
The municipality has effectively implemented a hidden tax on the ratepayers and citizens of Nelson Mandela Bay
— DA Eastern Cape leader Andrew Whitfield
Odendaal said the municipality had chosen to recover additional revenue from paying customers instead of addressing the financial and operational failures within its electricity and energy directorate, which recorded losses of R1.5bn in the last audited financial year.
“Residents should not be forced to carry the cost of electricity losses, poor financial management, inadequate maintenance and years of mismanagement.
“Businesses will also feel the impact.
“Small businesses, manufacturers, retailers and entrepreneurs cannot absorb another major increase in operating costs.
“Higher electricity prices threaten investment, economic growth and job creation,” Ondedaal said.
Whitfield said the tariff increases would have a crippling effect on residents who were already facing increases in transport costs due to fuel price increases.
“We are very worried that this is the straw that breaks the economic camel’s back in Nelson Mandela Bay households.
“The municipality has effectively implemented a hidden tax on the ratepayers and citizens of Nelson Mandela Bay.
“It is unjust, it is unfair, it is illegal in our view, and it is a fact that we will fight until we get justice.”
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