A recent high court judgment could be a game changer for the setting of municipal electricity tariffs in South Africa. In late October 2025, the court ruled that the process used by the National Energy Regulator of South Africa (Nersa) to decide yearly electricity price hikes was unconstitutional because it stifled public participation and violated the right to fair administrative action.
This means that the way municipalities decide on annual electricity price increases will change. Everyone who uses electricity will now be able to see how price increases are justified. Municipalities will be compelled to publish key financial documents used to justify price increases.
