The Nelson Mandela Bay Municipality says it will implement a High Court order directing it to restore the Inclining Block Tariff (IBT) for qualifying domestic electricity consumers for the 2026/27 financial year.
The order, granted by agreement between the parties in respect of Part A of the legal proceedings, provides a legal framework for reinstating the tariff, subject to the necessary regulatory approvals from the National Energy Regulator of South Africa (NERSA).
The municipality said it respects the authority of the courts and is committed to implementing the order transparently and within the prescribed timeframes.
Executive Mayor Babalwa Lobishe said the municipality recognises the impact that electricity costs have on households, pensioners, students and businesses.
"When residents expressed concern, we listened. When the court provided clarity, we accepted our constitutional responsibility to implement its order. That is what accountable government requires," Lobishe said.
She said the municipality remains committed to ensuring that every qualifying domestic electricity consumer benefits from the implementation process.
The municipality emphasised that the interim agreement should not be interpreted as an admission that it acted unlawfully when implementing the tariff structure from 1 July 2026.
According to the municipality, the tariff structure formed part of the 2026/27 Budget and Tariffs adopted by the Municipal Council following the statutory budget, consultation and public participation processes prescribed by law.
It said the legal challenge relates to the implementation of the tariff structure, with the High Court proceedings divided into two parts. Part A sought interim relief pending the determination of the substantive review proceedings contained in Part B.
“Following constructive engagement between the parties, agreement was reached regarding the interim relief sought in Part A, and that agreement has now been made an Order of Court.”
The municipality said agreeing to the interim relief will provide certainty for residents while allowing the substantive legal issues to be determined by the court.
In terms of the court order, the municipality has been directed to restore the IBT applicable to qualifying domestic electricity consumers, obtain the necessary regulatory approval from NERSA for the consequential tariff amendments and implement the restored tariff structure retrospectively with effect from 1 July 2026.
The municipality must also allocate the appropriate credits to qualifying domestic electricity consumers, in accordance with the implementation framework and timelines set out in the Court Order.
To facilitate the process, the municipality has established a multidisciplinary implementation team comprising officials from Legal Services, Electricity and Energy, Revenue Management, Information Technology, Finance, Customer Care and Corporate Services.
The multidisciplinary teams have commenced detailed planning to secure the required regulatory approvals, restore the Inclining Block Tariff within municipal billing and vending systems, identify qualifying customer accounts, recalculate electricity charges from 1 July 2026, validate all billing adjustments, process customer credits accurately, and communicate progress to residents throughout the process.
The municipality said qualifying customers will not be required to submit applications or lodge claims for the credits.
“Once the required regulatory approvals have been obtained and the technical implementation has been completed, qualifying credits will be processed automatically through the municipality's billing systems and reflected on customer accounts in accordance with the Court Order. The municipality appreciates that residents will wish to know when implementation will be completed and when credits will begin reflecting on their accounts,” the municipality explained.
Transparency and accountability
While some implementation milestones depend on NERSA's approval process contemplated by the court, the municipality said it will proceed with all aspects of implementation without unnecessary delay and provide regular updates to the public as each milestone is achieved.
Lobishe said transparency and accountability will remain the defining principles throughout implementation.
“We are committed to implementing the Court Order professionally, fairly and transparently while ensuring that residents remain informed throughout every stage of the process. Open communication and public accountability are essential to strengthening confidence in local government,” the mayor said.
She reaffirmed the municipality's commitment to constitutional governance, service delivery and ethical leadership.
"Local government exists to improve people's lives. Every budget we approve, every tariff we implement and every service we deliver must ultimately advance that purpose. As we implement this Court Order, our focus remains firmly on protecting residents, strengthening public confidence and continuing to deliver reliable municipal services with professionalism and integrity.” – SAnews.gov.za
