Nelson Mandela Bay municipality has applied to the national energy regulator for approval to reinstate the inclining block electricity tariff and is sticking to the council-approved 2026/2027 10.95% electricity tariff increase.
Affected households are set to receive retrospective credits for amounts they overpaid under the flat rate introduced in July.
The municipality said last week it formally applied to the National Energy Regulator of SA (Nersa) for approval of the tariff amendments required to comply with the Gqeberha high court order directing it to restore the inclining block tariff (IBT).
However, the IBT has not yet been restored, as the municipality cannot legally activate the revised tariff until Nersa gives the green light.
The court ordered the municipality earlier in August to reverse its decision to replace the IBT with a single flat electricity tariff and to credit affected consumers for additional amounts they had paid since July 1.
The application follows an urgent court challenge by the DA, which took the municipality to court over the decision to scrap the IBT and replace it with a flat tariff.
The order gave the municipality 30 days to obtain the necessary regulatory approval, with any extension applying retrospectively from July 1.
The municipality abolished the IBT at the start of the 2026/2027 financial year after council approved an average electricity tariff increase of 10.95%.
Under the previous system, households paid R3.48/kWh for the first 250 units, R4.12/kWh for 251 to 500 units, and R4.57/kWh for consumption above 500 units, including VAT.
The new flat tariff of R4.50/kWh meant households using fewer than 250 units faced an effective 29% increase, while those using between 251 and 500 units faced an 18.7% increase.
The municipality said its application to Nersa proposed applying the council-approved 10.95% increase to the historical IBT blocks.
This means the reinstated tariff will not necessarily be a return to the exact rates residents paid during the 2025/26 financial year.
Once Nersa approval has been obtained, municipal technical and financial teams will reconfigure the billing system to move affected domestic accounts from the flat rate back to the tiered structure.
Municipal spokesperson Sithembiso Soyaya said the municipality was doing a comprehensive reconciliation of all qualifying accounts.
“The proposed structure applies the council-approved 10.95% increase directly onto the historical IBT blocks.
“Consumers who were affected by the flat tariff structure retrospectively from July 1 2026 will receive applicable financial credits or adjustments on their accounts,” he said.
The municipality has not yet indicated how much it expects to credit consumers collectively, or when it expects Nersa to decide on its application.
The court order requires credits for amounts overpaid under the flat-rate system to be reflected on affected consumers’ accounts within 30 days of the IBT being reinstated.
The municipality said it would launch a public awareness campaign and hold community meetings across its six regional clusters to explain the difference between the flat and tiered tariffs and the process for retrospective credits.
The court’s ruling dealt with the urgent first part of the case.
A second part, which will determine the constitutionality of the flat-rate tariff, is expected to be heard in 2027.
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