The DA in Nelson Mandela Bay is taking the municipality to court over electricity tariff increases. (Photo: factor.am / Wikipedia) The DA in Nelson Mandela Bay is approaching the high court, seeking an urgent interdict against increased electricity tariffs that came into effect in July, accusing the local government of not playing open cards with the residents of the metro.
Claiming the municipality’s series of obligatory public participation meetings were purposefully flawed and littered with half-truths, the DA wants the increases to be referred back to the National Energy Regulator of SA (Nersa) for review.
The party believes the public was not made aware of the full impact of the proposed 10.95% increase in electricity tariffs, when taking into account that the municipality was also doing away with the inclining block tariff system, under which consumers pay a reduced rate for their first 300 units of electricity every month.
All obligations met — municipality
The municipality, on the other hand, maintains that it met all its obligations before the increase, and that the new tariffs were implemented within the prescribed legislative and regulatory framework.
Municipal spokesperson Sithembiso Soyaya also acknowledged the DA’s proposed legal action, but the municipality would be in a position to comment only once it had received the court papers.
Speaking at a press conference at the DA offices in Gqeberha yesterday, DA mayoral candidate Retief Odendaal said the party’s attorneys had already drafted the court application and were expected to formally submit the documents by Wednesday afternoon or Thursday morning.
/file/dailymaverick/wp-content/uploads/2025/10/Presentation-181.jpg "The DA’s mayoral candidate for Nelson Mandela Bay Retief Odendaal. (Photo: DA / Facebook)")
“We are approaching the high court for an interdict to stop the implementation of the new tariff structure so that the electricity tariffs can be referred back to Nersa, given the fact that no public participation was done in respect of an increase that is more than double … what was originally proposed.
“We believe this tariff structure was imposed unlawfully,” Odendaal said.
While it touched on the effect the increased tariffs could have on businesses in NMB, the application focuses on the impact it would have on residents.
Odendaal explained that the legal action sought to prove that the municipality’s public participation process was flawed, that meetings were purposefully held at inconvenient times, and that the public had not been made aware of the full impact of the tariff adjustments.
The public participation process was held in March 2026, where it was explained that a Nersa-approved 10.95% increase would be imposed on domestic users from 1 July 2026.
Block tariff system shock
However, the DA claims this was not explained against the backdrop of the municipality scrapping the inclining block tariffs.
Under the block tariffs system, consumers received their first 300 kWh at a reduced rate. Any electricity above 300 units became more expensive. This system was specifically implemented to assist lower-income households.
“By removing this more affordable tariff, the municipality has effectively increased the cost of electricity for many households by approximately 25%-30%. This is far higher than the publicly communicated average tariff increase of 10.95%,” Odendaal said.
On the public participation process itself, Odendaal said he was aware of six meetings being held over the span of three days – most during office hours, with very few residents in attendance.
“I personally attended one such meeting at City Hall, and there were about seven residents in attendance. There was also no physical material explaining the tariffs in full, and no overhead projector to give a visual presentation of the increases,” he said.
Unpacking the increase, Odendaal said the new tariffs would be even more harmful to low-income residents who qualified for the Assistance to the Poor programme (ATTP).
For those consumers, a portion of their monthly electricity was subsidised even before they paid reduced rates on the block tariff system.
‘92% increase blow for the poorest’
According to Odendaal’s preliminary calculations, based on the municipality’s tariff booklet he received moments before the press conference, these residents, who can afford the new tariffs the least, are facing an increase just short of 92%.
“The consultation process was inadequate, with public meetings held over just three days, many during office hours, limiting meaningful public participation.
“We also believe that the municipality was fully aware that the scrapping of the inclining block tariffs and moving to a base cost would unduly prejudice certain categories of residents. The anticipated impact of this proposal was purposely and intentionally hidden from consumers and not disclosed during compulsory public participation processes.
“Our legal challenge seeks to ensure that the municipality complies with its constitutional and legislative obligations when making decisions that affect the public,” Odendaal said.
He said residents, who were already under financial pressure, could not be expected to carry the cost of electricity losses, poor financial management, inadequate maintenance and mismanagement of the city’s Electricity and Energy Directorate, which recorded losses of R1.5-billion in the last audited financial year.
Soyaya said the municipality noted the DA’s plans to approach the court, but would not comment on the legal process.
“At this stage, the municipality has not been served with the court application and is therefore not in a position to comment on the specific allegations being made. Once the application has been received, it will be carefully considered by the municipality’s legal team, and the appropriate legal process will be followed.”
/file/attachments/orphans/657257194_1545721007586085_8791677010888010228_n_182919.jpg "Nelson Mandela Bay Municipality spokesperson Sithembiso Soyaya. (Photo: Facebook / Nelson Mandela Bay Municipality)<br>")
He said the municipality’s 2026 and 2027 budget, along with the approved electricity tariffs, was developed and adopted in line with the prescribed legislative and regulatory framework.
“The process included the publication of the draft budget and tariffs for public comment, public participation conducted in line with the Municipal Finance Management Act and the Municipal Systems Act, consideration of stakeholder inputs, adoption by Council, and subsequent approval by the National Energy Regulator of South Africa.”
Approved tariff framework, says municipality
Soyaya said the approved tariff structure, including the migration from the inclining block tariff system to a flat tariff, formed part of the approved electricity tariff framework.
“While the municipality acknowledges that the impact of these changes differs across customer categories and consumption levels, it remains committed to engaging residents and providing clarity on the implementation of the approved tariffs.
“We further recognise the financial pressures facing households and businesses and remain focused on balancing affordability with the long-term sustainability of the electricity service.
“Revenue generated through approved tariffs is essential to support the operation, maintenance, refurbishment and upgrading of critical electricity infrastructure to ensure a reliable and sustainable supply,” Soyaya said.
He said as the matter was expected to come before court soon, it would not be appropriate to comment further on the merits of the application in the public domain, and the municipality would present its response through the proper legal channels and would continue to keep residents informed of any material developments. DM