Nersa admits 5 municipal power tariffs unlawful. Will you be refunded?
Nersa has conceded in court that the 2025/26 electricity tariffs for Johannesburg, Ekurhuleni, Nelson Mandela Bay, Emfuleni and Madibeng were unlawful. The judge is weighing how overpaying customers could be credited.
Energy regulator Nersa has conceded in the High Court in Pretoria that the 2025/26 electricity tariffs it approved for Johannesburg, Ekurhuleni and Nelson Mandela Bay, plus Emfuleni and Madibeng, were unlawful (Moneyweb). The judge is now working out how people who overpaid could be credited. No refund has been ordered yet and the hearing is continuing.
Which municipalities are affected?
| Municipality | Tariff year conceded as unlawful |
|---|---|
| City of Johannesburg | 2025/26 |
| Ekurhuleni | 2025/26 |
| Nelson Mandela Bay | 2025/26 |
| Emfuleni (Vaal) | 2025/26 |
| Madibeng (Brits, Hartbeespoort) | 2025/26 |
Source: Moneyweb.
According to Moneyweb, the numbers behind the municipalities' tariff applications were full of errors and Nersa approved them without checking the figures. Once large electricity users pointed out the mistakes in court papers, Nersa conceded its approvals were "indefensible" (Moneyweb).
How much more were customers paying?
The court heard on 9 November that businesses in Nelson Mandela Bay paid 76% more for electricity in 2025/26 than it cost the metro to supply it (Moneyweb). Figures for the other municipalities were not reported.
Will you get money back?
Not yet, and it isn't settled who would. The case was brought by large power users, including Mpact, Autocast SA, Coega Steels and the Casting, Forging and Machining Cluster of South Africa (Moneyweb).
The parties disagree on the remedy:
| Party | Position in court |
|---|---|
| Ekurhuleni | Says it cannot afford to refund customers |
| Mpact | Proposed limiting adjustments to the businesses that went to court |
| Nersa | Says any correction should apply to all electricity users in those municipalities, phased in over future years to avoid price shocks |
| Applicants' counsel | Asked that interest be added if credits take time |
Source: Moneyweb.
Judge RG Tolmay floated appointing an independent expert to work out how much customers were overcharged so they could be credited quickly, and stricter court supervision to make sure the order is carried out. She told the legal teams to come back with proposals (Moneyweb).
"This cannot go on indefinitely," she said (Moneyweb).
Hasn't this happened before?
Yes. About a year ago, Judge Anthony Millar ruled that the 2024/25 tariffs Nersa approved for Johannesburg, Ekurhuleni, Madibeng and Msunduzi (Pietermaritzburg) were unlawful, and in January sent them back to Nersa to redo (Moneyweb). Nersa missed the 30 June deadline and still had not finished by November (Moneyweb).
Under that order, the previous year's tariff or the equivalent Eskom tariff should apply when Nersa misses the deadline. The Pietermaritzburg and Midlands Chamber of Business says Msunduzi owes credits of about R200 million to nearly 700 businesses, which have not been paid (Moneyweb). The court also heard Madibeng last had a lawful tariff around 2013 (Moneyweb).
What happens next?
The legal teams must submit proposals for a remedy, and the judge will then decide what order to make (Moneyweb). The applicants' attorney said he is already preparing similar challenges to this year's (2026/27) Nersa-approved tariffs in several municipalities (Moneyweb).
If you're a customer in one of these areas, there is nothing to apply for at this stage. Keep your municipal electricity bills or prepaid purchase records, as any credit would be worked out from what was charged.
FAQ
Which electricity tariffs did Nersa admit were unlawful?
The 2025/26 tariffs it approved for Johannesburg, Ekurhuleni, Nelson Mandela Bay, Emfuleni and Madibeng, according to Moneyweb's report from the High Court in Pretoria.
Will households get a refund?
No refund has been ordered yet. Nersa argued any correction should apply to all users in those municipalities, while one applicant proposed limiting it to the businesses that went to court. The judge has asked for proposals.
How much were Nelson Mandela Bay businesses overcharged?
The court heard they paid 76% more for electricity in 2025/26 than it cost the metro to supply it.