The National Energy Regulator of South Africa has approved Nelson Mandela Bay’s application to reinstate the inclining block tariff, which provides for a 10.95% electricity tariff increase.
Council approved the increase for the 2026/2027 financial year.
The DA took the municipality to court over the decision to scrap the tariff and replace it with a flat tariff.
The court ordered the municipality in early 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 order gave the municipality 30 days to obtain the necessary regulatory approval, with any extension applying retrospectively from July 1.
In a statement, municipal spokesperson Sithembiso Soyaya said the energy regulator considered the municipality’s application at its meeting on September 7 and approved the consequential amendments to the affected domestic electricity tariff categories.
The approval was formally communicated to the metro on September 8.
The approved amendments apply to the affected domestic tariff categories that were moved from the inclining block tariff structure to flat rate pricing during the 2026/27 financial year.
“Importantly, Nersa has confirmed that the amendment is limited to these affected domestic categories.
“The domestic time of use, commercial, industrial, wheeling, small scale embedded generation and all other unaffected tariff categories remain unchanged from the tariffs previously approved by Nersa on May 11 2026,” Soyaya said.
The approved tariff structure includes the following rates for the affected domestic categories:
Soyaya said Nersa did not approve the proposed domestic prepaid basic charge.
“The approval specifically excludes that proposed charge from the amended domestic tariff structure.
“The municipality is now proceeding with the implementation of the Nersa-approved tariff structure in accordance with the applicable regulatory requirements and the high court order.
“The municipality is also required to provide Nersa with confirmation of implementation, including details of credits or additional prepaid units allocated to affected consumers, within 30 days of implementation,” he said.
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