Court rules Nersa's electricity tariff hikes unconstitutional

A Pretoria tribunal invalidated approval procedures used by South Africa's electricity oversight body for granting rate adjustments to local governments during the current budget period. Judge Etienne Labuschagne sided with civil advocacy group AfriForum on Thursday, finding that the National Energy Regulator of South Africa violated constitutional standards by limiting resident participation and withholding expense analyses. One municipality received authorization within 24 hours of submitting its proposal on June 19.

Labuschagne criticized the agency for classifying financial studies as confidential materials inaccessible to ratepayers. He established mandatory deadlines requiring regulators to announce wholesale pricing by Jan. 31 each year, while municipalities must file requests by March 30. Final determinations must occur by May 5 after publishing all documentation for citizen review.

Cape Town's mayor praised the decision as beneficial for communities nationwide. The court scheduled further proceedings for Nov. 18 to determine whether provisional instructions become permanent. Current rates remain effective through June 2026 despite procedural defects identified in the ruling.
 

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