Criticism arises as City of Cape Town celebrates NERSA victory amid ongoing legal issues
The non-political civic organisation STOP COCT, known for promoting public participation and transparency in municipal governance, has criticised the City of Cape Town for “beating its own chest” over a recent court victory against the National Energy Regulator of South Africa (NERSA) even as the City remains embroiled in a similar case in the Western Cape High Court.
The North Gauteng High Court this week declared NERSA’s public participation process for 2025/26 municipal tariff applications invalid, compelling the regulator to implement strict new timelines for communicating and finalising electricity tariff decisions.
The order requires NERSA to inform municipalities of Eskom’s bulk tariff increases by 31 January each year, publish all municipal cost-of-supply studies for public comment, and finalise tariff decisions by 5 May, accompanied by reasons for each determination.
The case was brought by AfriForum, with the City of Cape Town joining to make submissions on more efficient timelines.
Mayor Geordin Hill-Lewis welcomed the ruling, calling it a positive step for residents in all municipalities across South Africa, who will benefit from more transparency in electricity tariff-setting decisions.
“The order halts NERSA’s chaotic and delinquent handling of municipal tariff applications,” Hill-Lewis said.
“Cape Town has all along asked only for timeous, rational decisions by NERSA, as one of a handful of municipalities that actually submits detailed cost-of-supply studies to the regulator each year.”
However, STOP COCT founder Sandra Dickson accused the City of celebrating prematurely while its own conduct is still under judicial scrutiny.
“STOP COCT welcomes the court ruling compelling NERSA to give municipalities more time to respond to electricity tariff increase decisions.
“This is a crucial step toward fairness and transparency for both municipalities and consumers,” said Dickson.
“But it must be added that the City of Cape Town’s Mayor is gloating over this court ruling against NERSA, even though the City itself is still manoeuvring in its court case with NERSA as a result of charging higher tariffs than what NERSA approved for 2023 and 2024.”
Dickson said the ongoing case between the City and NERSA, which has been dragging on for several years, centres on allegations that the City implemented electricity tariffs above those approved by the regulator.
“The court still hasn’t ruled in the City’s favour,” she noted.
STOP COCT said that while the new ruling is a crucial step toward fairness, it should not distract from municipalities’ responsibility to comply with approved tariffs and ensure meaningful public participation in setting them.
“This court ruling addresses past delays caused by NERSA that resulted in confusion,” Dickson said.
“It will hopefully ensure municipalities have sufficient time for meaningful public participation, leading to more consumer-centred and fair budgeting.”
The civic group believes the judgment, if implemented correctly, could help “strengthen municipal budgeting and lead to more transparency, accountability and proper public participation in tariff-setting processes.”
Meanwhile, NERSA confirmed it is assessing the full impact of the judgment on its operations. While the court found its consultation process inadequate, NERSA noted that municipal tariff approvals themselves remain valid.
The regulator said it will “communicate the most responsible, reasonable and efficient way forward in due course” after reviewing the court’s interim order.
For now, STOP COCT says it will continue monitoring both NERSA’s compliance with the new timelines and the City of Cape Town’s conduct in its pending High Court matter.
“True accountability means not just celebrating court wins but also adhering to the same principles of fairness and transparency you demand from others,” Dickson said.
tracy-lynn.ruiters@inl.co.za