The South African court has ruled that municipal electricity tariff decisions must be transparent and involve public participation, setting new fixed decision-making timelines. The National Energy Regulator of South Africa (Nersa) must now finalize all municipal tariff applications by May 5th, ensuring a fair and timely process. This decision follows a court judgment in October, which deemed Nersa's approval of municipal electricity tariffs without proper cost-of-supply (COS) studies and public input as unconstitutional. The court imposed annual timelines for Nersa, Eskom, and municipalities, including Eskom's Retail Tariffs Structural Adjustments Application (ERTSA) submission by August 31st. Nersa must notify municipalities of wholesale tariffs by January 31st and make final decisions by May 5th, with immediate communication of reasons. All tariff applications and COS studies must be publicly accessible for comment. The court's ruling is seen as a milestone, ensuring electricity consumers' rights and a more transparent decision-making process. This follows AfriForum's previous victory, where the High Court ruled Nersa's decision to consider tariff increases without COS studies as unlawful. The court emphasized the importance of transparent COS data and public participation, rejecting Nersa's argument that customers lack the right to know the costs of supplying electricity. The court's intervention aims to enforce accountability and protect public participation in the electricity tariff approval process.
