Nersa ordered to publish cost-of-supply studies on municipal tariffs
The North Gauteng High Court in Pretoria has ruled in favour of AfriForum regarding the National Energy Regulator of South Africa’s (Nersa) argument that cost-of-supply (CoS) studies, upon which municipal tariff applications are based, are confidential. The court has ordered Nersa to publish these studies as part of each municipal distributor’s annual tariff application.
Image credit: Rob Martin on Unsplash
“How Nersa could unilaterally declare a cost of supply study as confidential is beyond concerning.
“It did not publish this policy in advance,” Judge Etienne Labuschagne said in his judgment.
The ruling will allow greater transparency between consumers and municipalities as it gives users access to information about what it costs each municipality to supply electricity.
Moneyweb reports that this information includes how much municipalities pay Eskom for bulk purchases as well as how much is spent on repairs and maintenance.
According to the order, Nersa must now adhere to three key deadlines every year:
- By 31 January: Notify municipalities of approved Eskom and other generator price increases.
- Before public participation: Consider and publish each municipality’s cost-of-supply study and tariff proposal.
- By 5 May: Finalise all municipal tariff decisions and release written reasons for each ruling.
Eyewitness News reports that Cape Town Mayor, Geordin Hill-Lewis, has welcomed the new timeframe, which will give the public more time to give their input into the proposed price of electricity.
The City of Cape Town had made submissions to the case.
“We are appreciative that the court accepted our arguments imposing a timetable on Nersa that brings to an end the regulator’s common practice of late decisions without reasons and only published after the municipal budget year has already started,” said Hill-Lewis.
Nersa and municipalities across the country have until 18 November 2025 to contest this ruling.