The Nelson Mandela Bay Municipality says it will implement a High Court order requiring the restoration of the Inclining Block Tariff (IBT) for qualifying domestic electricity customers for the 2026/27 financial year.
The order, agreed to by the parties in relation to Part A of the legal proceedings, provides a framework for reinstating the tariff, subject to approval from the National Energy Regulator of South Africa (NERSA).
The municipality said it respects the court’s decision and will implement the order transparently and within the required timeframes.
Executive Mayor Babalwa Lobishe said the municipality understands the impact rising 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,” Lobishe said.
The municipality confirmed that qualifying domestic electricity consumers will not need to apply for credits. Once regulatory approvals and technical adjustments are completed, credits will automatically be processed through municipal billing systems.
The court order requires the municipality to:
Restore the IBT for qualifying domestic electricity users;
Obtain the necessary NERSA approval for tariff amendments;
Apply the restored tariff retrospectively from 1 July 2026; and
Allocate credits to affected customers.
A multidisciplinary implementation team has been established, including officials from Legal Services, Electricity and Energy, Revenue Management, Finance, IT, Customer Care and Corporate Services.
The team is responsible for securing approvals, updating billing systems, identifying qualifying accounts, recalculating charges and ensuring accurate credit allocations.
The municipality stressed that agreeing to the interim court order does not amount to an admission that the original tariff structure was unlawful. It said the tariff formed part of the 2026/27 Budget and Tariffs adopted after following required public consultation and statutory processes.
The legal challenge consists of two parts, with Part A dealing with interim relief while Part B addresses the broader review proceedings.
Mayor Lobishe said the municipality remains committed to transparency and accountability throughout the process.
“We are committed to implementing the Court Order professionally, fairly and transparently while ensuring that residents remain informed throughout every stage,” she said.
The municipality said further updates will be provided as regulatory approvals and implementation milestones are reached
The order, agreed to by the parties in relation to Part A of the legal proceedings, provides a framework for reinstating the tariff, subject to approval from the National Energy Regulator of South Africa (NERSA).
The municipality said it respects the court’s decision and will implement the order transparently and within the required timeframes.
Executive Mayor Babalwa Lobishe said the municipality understands the impact rising 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,” Lobishe said.
The municipality confirmed that qualifying domestic electricity consumers will not need to apply for credits. Once regulatory approvals and technical adjustments are completed, credits will automatically be processed through municipal billing systems.
The court order requires the municipality to:
Restore the IBT for qualifying domestic electricity users;
Obtain the necessary NERSA approval for tariff amendments;
Apply the restored tariff retrospectively from 1 July 2026; and
Allocate credits to affected customers.
A multidisciplinary implementation team has been established, including officials from Legal Services, Electricity and Energy, Revenue Management, Finance, IT, Customer Care and Corporate Services.
The team is responsible for securing approvals, updating billing systems, identifying qualifying accounts, recalculating charges and ensuring accurate credit allocations.
The municipality stressed that agreeing to the interim court order does not amount to an admission that the original tariff structure was unlawful. It said the tariff formed part of the 2026/27 Budget and Tariffs adopted after following required public consultation and statutory processes.
The legal challenge consists of two parts, with Part A dealing with interim relief while Part B addresses the broader review proceedings.
Mayor Lobishe said the municipality remains committed to transparency and accountability throughout the process.
“We are committed to implementing the Court Order professionally, fairly and transparently while ensuring that residents remain informed throughout every stage,” she said.
The municipality said further updates will be provided as regulatory approvals and implementation milestones are reached
