South Africa’s Electricity Distributors and the NERSA tariff application Timeline
The National Energy Regulator of South Africa (NERSA) has brought much-needed clarity to the electricity tariff landscape by announcing a formal timeline for licensed electricity distributors to submit their tariff applications for the 2026/27 financial year. This structured process is crucial for municipalities and other distributors as they plan their budgets and for consumers who need to anticipate changes in their electricity costs.
The announcement establishes a clear path from application to implementation, ensuring regulatory certainty and allowing for public participation in a critical economic process.
Key Dates for the 2026/27 NERSA tariff application Process
For all licensed electricity distributors, including the country’s municipalities, NERSA has outlined a strict schedule to ensure that approved tariffs can be implemented in line with their financial years. The key milestones are as follows:
-
Application Submission Deadline: March 31, 2026
All distributors are required to submit their complete tariff applications to the regulator by the end of March 2026. -
Public Consultation Period: Until April 21, 2026
In the interest of transparency, NERSA will publish the submitted applications, opening a window for stakeholders and the public to provide comments and engage with the proposed tariffs. This phase is vital for ensuring all voices are heard and may include public hearings to deliberate on the applications. -
Final Decision and Approval: By May 11, 2026
Following the consultation period, NERSA will review all feedback and make its final determinations on the applications. The regulator has committed to issuing its approvals on or before May 11, 2026. -
Implementation Date: July 1, 2026
The approved tariffs are scheduled to take effect from July 1, 2026, which conveniently aligns with the start of the municipal financial year. This synchronisation is essential for sound financial planning at the local government level.
Clarifying the Difference: Distributor Tariffs vs. Eskom’s Direct Increase After NERSA tariff application
It is important for consumers to distinguish between this process for licensed distributors and the separate tariff adjustment for Eskom’s direct customers.
While the timeline above applies to municipalities and other licensed distributors, NERSA has already approved a separate tariff increase for the national utility. Eskom will implement an 8.76% tariff increase for its direct customers, effective from April 1, 2026.
Municipalities, which buy electricity in bulk from Eskom and then distribute it to residents and businesses, will see their bulk purchase tariffs increase. Following this, they are expected to implement their own NERSA-approved tariff adjustments for end-users on July 1, 2026. Reports indicate that municipal customers can expect an average increase of around 9.01%, though the final figure for each municipality will depend on its individual application and NERSA’s final approval.
By setting this clear and public timeline, NERSA is aiming to foster a more predictable and transparent regulatory environment for South Africa’s complex electricity distribution sector. All eyes will now be on the upcoming submissions and the subsequent public engagement process.
