NMB Municipality to Restore Inclining Block Electricity Tariff Following High Court Order
Brought to you by SAnews: Under an interim High Court order granted by agreement in Part A of review proceedings, the Nelson Mandela Bay Municipality is required to reinstate the Inclining Block Tariff (IBT) for qualifying domestic electricity consumers for the 2026/27 financial year, retrospectively from 1 July 2026.
In terms of the court order, the implementation of the restored IBT structure remains subject to regulatory approval from the National Energy Regulator of South Africa (NERSA). The interim agreement provides temporary relief pending the finalisation of Part B of the litigation, which concerns substantive review proceedings challenging the municipal tariff structure adopted under the Local Government: Municipal Finance Management Act, No. 56 of 2003 and the Electricity Regulation Act, No. 4 of 2006 for the 2026/27 budget cycle.
The High Court order imposes specific compliance directives on the municipality:
- Obtain formal regulatory approval from NERSA for consequential electricity tariff amendments.
- Restore the Inclining Block Tariff structure within municipal vending and billing IT systems.
- Recalculate electricity charges for qualifying domestic consumer accounts with retrospective effect from 1 July 2026.
- Automatically apply appropriate billing credits to qualifying accounts without requiring residents to submit individual claims or applications.
The municipality confirmed that a multidisciplinary team comprising Legal Services, Electricity and Energy, Revenue Management, and IT units has commenced technical adjustments. Automatic credit distribution and adjusted billing will follow once NERSA grants the necessary regulatory approvals.
What this means for you, your business, or your clients
- For yourself: Qualifying domestic electricity account holders in Nelson Mandela Bay do not need to lodge formal refund applications; retrospective billing credits will be applied automatically to accounts following NERSA regulatory sign-off.
- For your business: Commercial entities operating in the municipality should note that this interim order specifically applies to domestic tariffs; however, property management firms and residential landlords must monitor utility account statements to ensure accurate pass-through of billing adjustments to domestic tenants.
- For your clients: Legal and accounting practitioners advising clients in the Eastern Cape region should review client municipal billing records to verify compliance with court-mandated retrospective credits once NERSA issues its final tariff approval.
Originally published at https://www.sanews.gov.za/south-africa/nelson-mandela-bay-implement-court-order-domestic-electricity-tariff