NERSA tariff application: 2025 timeline is essential

Understanding the NERSA tariff application: 2025 timeline is essential

In a move to enhance regulatory certainty within South Africa’s energy sector, the National Energy Regulator of South Africa (NERSA) has officially published a structured timeline for licensed electricity distributors to submit their tariff applications for the 2026/27 financial year. This critical schedule provides municipalities and other distributors with a clear framework for budget planning while also informing consumers about upcoming changes to their electricity costs.

The established process ensures a transparent and participatory approach, setting a clear path from the initial application phase through to final implementation.

Key Milestones in the Tariff Approval Process

NERSA has mandated a strict schedule to ensure that all approved tariffs align with the start of the municipal financial year. The timeline for all licensed distributors is as follows:

• Application Deadline (March 31, 2026): All distributors must have their complete tariff applications submitted to the regulator by this date.
• Public Consultation Period (Until April 21, 2026): To foster transparency, NERSA will make the submitted applications public. This opens a crucial window for stakeholders and consumers to provide feedback and engage in the process, which may include public hearings.
• Final Determinations (By May 11, 2026): After thoroughly reviewing all public comments and stakeholder feedback, NERSA will make its final decisions on the tariff applications.
• Tariff Implementation (July 1, 2026): The newly approved tariffs are set to take effect, coinciding with the beginning of the municipal financial year, which is essential for seamless local government financial management.

Understanding Eskom vs. Municipal Tariff Adjustments

It is crucial for consumers to differentiate between the tariff process for municipal distributors and the separate rate adjustment for Eskom’s direct customers. The timeline detailed above applies specifically to municipalities that purchase electricity in bulk from Eskom and then sell it to end-users.

Separately, NERSA has already approved an 8.76% tariff increase for Eskom’s direct customers, which will be effective from April 1, 2026. Following this, municipalities will implement their own NERSA-approved rates on July 1, 2026. While each municipality’s final rate will depend on its approved application, reports suggest consumers supplied by municipalities can anticipate an average increase in the region of 9.01%.

By defining this clear schedule, NERSA aims to create a more predictable and transparent environment for all participants in South Africa’s complex electricity distribution landscape.

Sources

1. Court imposes strict timelines for Nersa municipal electricity tariff …
2. NERSA struggles to keep to timelines for municipal power tariff …
3. Nersa publishes new municipal tariff application deadlines
4. NERSA Announces Approval Process And Tariff Application …
5. [PDF] ELECTRICITY TARIFF SCHEDULE: 2025/2026 – NERSA
6. [PDF] 3 December 2025 NOTICE OF WORKSHOP WITH MUNICIPALITIES …
7. [PDF] notice of nersa’s publication of the electricity tariff applications
8. [PDF] MEDIA STATEMENT – NERSA