The Gqeberha high court has ordered the Nelson Mandela Bay municipality to reverse its controversial flat-rate electricity pricing system and refund residents for any extra costs incurred since July 1, handing a major victory to thousands of households hit by soaring power bills.
Upholding an urgent application by the DA, the order instructed the municipality to reinstate the inclining block tariff, which was in place during the 2025/2026 financial year.
It was scrapped when the new financial year started after the council adopted the 2026/2027 budget.
The budget, which included an average electricity tariff increase of 10.95%, was adopted on June 8, with 62 councillors voting in favour and 42 against.
Several opposition parties did not support the budget.
The municipality began phasing out the inclining block tariff in the 2021/2022 financial year, removing it completely in the 2026/2027 financial year.
The court instructed the municipality to refund residents for any additional costs incurred under the flat-rate tariff.
The order was made on Tuesday following a DA application for an urgent interdict to stop the metro from further implementing its flat-rate tariff increases.
The DA had argued that the metro’s 2026/2027 electricity tariff increase was unconstitutional and based on a flawed public participation process.
A crowd of jubilant DA supporters cheered outside the court as DA MPL Retief Odendaal emerged, triumphantly holding judge Bulelwa Pakati’s order aloft.
Odendaal said it was a powerful development for fairness, justice and good governance.
“This draft order is a massive victory for the people and especially poor and middle-class residents.
“It will mean more money in people’s pockets almost immediately.
“It’s a victory for Nelson Mandela Bay.”
The court proceedings lasted 10 minutes, just long enough for Pakati to issue the order, which had already been agreed to by the legal counsel of the DA and the metro.
The DA’s legal team was led by advocate Graham Richards and the metro’s team by advocate Olav Ronaasen.
According to the order, the metro must reinstate the inclining block tariff, which charges residents on a sliding scale based on consumption.
The inclining tariff system is intended to discourage excessive electricity use while ensuring that higher consumption households effectively subsidise those using less power.
The order gives the metro 30 days to obtain the necessary approval from the National Electricity Regulator of SA to allow the municipality to revert to the previous system.
The order states that the court may grant an application to extend the implementation period, but any extension will apply retrospectively from July 1.
The court also ordered the metro to credit all affected consumers for any amounts they overpaid after the flat-rate electricity system replaced the inclining block tariff.
The order states that these credits must be reflected on affected consumers’ accounts within 30 days of the reinstatement of the inclining block tariff.
The DA argued that, having told residents they could expect a 10-11% electricity tariff increase, the metro embarked on a brief, poorly advertised public participation programme on the flat-rate tariff.
There was a massive outcry from residents when the new system was implemented in the form of a single flat rate of R4.50 per kilowatt hour.
For households buying fewer than 250kWh of electricity a month, the change represented a 29% increase compared with last year’s tariff.
Tuesday’s judgment concludes the urgent Part A proceedings of the case.
Part B will determine the constitutionality of the flat-rate electricity tariff.
This is expected to be heard only next year.
Standing alongside Odendaal after the ruling, DA Eastern Cape leader Andrew Whitfield said the party had responded to an outpouring of desperation from residents.
“This is a victory for the socioeconomic fabric of our city,” Whitfield said.
“It’s a message to government to treat people with respect.”
Odendaal said the metro’s effort to introduce the flat-rate tariff was intended to shore up the bankrupt electricity and energy department, which recorded R1.5bn in losses in the last financial year.
“We say rather than passing this problem on to the people, who can barely even afford a 10% increase, get your own house in order.”
Odendaal said when the party led the Bay in early 2023, it introduced an amnesty for people tampering with electricity to get free supply in exchange for no prosecution and a free meter.
“Twenty-one thousand people came forward, and if the initiative had been implemented it would have made a substantial difference to our electricity revenue collection.
“But the DA was ousted shortly thereafter and these people never received their meters.
“Consequently, to this day, all of them are still illegally drawing free electricity.”
Municipal spokesperson Sithembiso Soyaya said the municipality would implement the order diligently and transparently.
“The municipality recognises that the implementation of the domestic electricity tariff structure from July 1 generated understandable concern among many residents,” Soyaya said.
“The municipality believes that resolving Part A of the proceedings by agreement provides the most responsible path forward at this stage.
“Rather than prolonging interim litigation and uncertainty for residents, the agreement establishes a structured implementation framework that provides certainty to qualifying domestic electricity consumers while preserving the orderly determination of the substantive legal issues contained in Part B.”
The statement said residents would not be required to lodge claims for qualifying credits.
“Once the required regulatory approvals have been obtained and the technical implementation has been completed, qualifying credits will be processed automatically through the municipality’s billing systems and reflected on customer accounts in accordance with the court order.
“The municipality appreciates that residents will wish to know when implementation will be completed and when credits will begin reflecting on their accounts.
“While certain implementation milestones remain dependent on the regulatory approval process contemplated by the court, the municipality is committed to progressing every aspect of implementation without unnecessary delay and will provide regular public updates as each milestone is achieved.”
It said the domestic electricity tariff structure introduced on July 1 was not the result of a unilateral administrative decision by the mayor, the mayoral committee or any individual political party.
“The tariff structure formed part of the municipality’s 2026/2027 budget and tariffs, which were considered, debated and adopted by the council following the statutory budget, consultation and public participation processes prescribed by law.
“The municipality emphasises that the agreement reached in respect of Part A should not be interpreted as an admission that the municipality acted unlawfully in implementing the tariff structure adopted by council.
“The agreement relates exclusively to the interim relief sought in Part A and provides a practical framework for implementation pending the determination of the substantive legal questions that remain before the court in Part B.”
Mayor Babalwa Lobishe said with the court having provided clarity, the metro now accepted its responsibility to implement the order.
“Our commitment extends beyond legal compliance.
“It is about ... ensuring that every qualifying domestic electricity consumer receives the benefit of the implementation process directed by the court.”
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