For households and businesses already battling high living costs, electricity bills often feel like one of the heaviest burdens. Now, a court ruling has confirmed what many suspected: two of South Africa’s biggest cities, Johannesburg and Ekurhuleni, were among four municipalities that applied unlawful electricity tariffs during the 2024/25 financial year.
According to reports and court findings, the National Energy Regulator of South Africa (NERSA) approvals for these tariffs were declared invalid by the Gauteng High Court in Pretoria. The other two municipalities affected are Madibeng (North West) and Msunduzi (KwaZulu-Natal). The court found serious shortcomings in the tariff determination process, including inadequate cost-of-supply studies and insufficient public participation.
The judgment means the tariffs applied throughout much of the past financial year did not meet legal requirements. This could eventually result in adjustments to customer bills, with some residents and businesses potentially receiving credits for overpayments, while others may face additional charges. For ordinary South Africans already feeling the pressure, the news brings fresh uncertainty.
Industrial users and business organisations had taken legal action, arguing that NERSA approved the tariffs without proper supporting studies. The court agreed and sent the matter back to NERSA for redetermination. The municipalities must now submit corrected applications, and NERSA is required to follow due process, including proper public consultation.
Johannesburg and Ekurhuleni serve millions of people and power major parts of Gauteng’s economy. When their electricity pricing is ruled unlawful, the impact is wide-reaching, affecting everything from household budgets to the operations of small businesses and large industries. Many residents in these metros have already endured years of load shedding, frequent tariff hikes, and service delivery challenges, making this latest development particularly frustrating.
The ruling shines a light on ongoing problems in how municipal electricity tariffs are set across the country. Proper cost studies, transparent processes, and meaningful public input are not optional , they are legal safeguards designed to protect consumers from unfair or arbitrary charges. When these safeguards fail, trust in the entire system suffers.
Customers in the affected municipalities are now waiting to see what the corrected tariffs will look like and whether any retrospective refunds or adjustments will be applied. While the legal process continues, the case serves as a reminder that electricity remains one of the most critical, and contentious, services in South Africa.
As NERSA and the municipalities work through the redetermination, many South Africans will be hoping for greater transparency and fairness. Lawful, reasonable, and well-explained tariffs are essential if residents are to have confidence in the system that powers their homes and livelihoods.
