Johannesburg residents could see changes to their electricity bills following a High Court ruling that ordered the National Energy Regulator of South Africa (Nersa) to redetermine the electricity tariffs applied in 2024/25 for the City of Johannesburg, Ekurhuleni, Madibeng, and Msunduzi municipalities.
The ruling comes after the court declared the tariffs unlawful in November 2025, following applications by industrial electricity users who argued that the tariffs were approved using flawed processes.
Judge Anthony Millar directed Nersa to restart the tariff determination process from scratch. Municipalities must now submit updated cost-of-supply (CoS) studies, which Nersa will publish for public comment before making a final decision.
The process must be completed and published by 30 June, in time for the 2026/27 municipal financial year starting 1 July.
Who challenged the tariffs?
The court action was initiated by industrial electricity users, including the Casting, Forging and Machining Cluster of South Africa NPC, Autocast, and the Pietermaritzburg and Midlands Chamber of Business NPC.
These companies argued that the 2024/25 tariffs unfairly shifted costs, keeping residential tariffs artificially low while overcharging industrial users.
While Nersa acknowledged the unlawfulness of the tariffs, the court ruled that the redetermination process must apply to all customers in the affected municipalities.
This means that both industrial and residential users could see adjustments, depending on the outcome of the new CoS studies.
What could this mean for Joburg households?
Households could face higher tariffs if the new calculations reduce the level of industrial subsidization that previously kept residential electricity costs lower. Industrial users may, in turn, receive credits for past overcharges.
The ruling also comes amid ongoing adjustments to Eskom tariffs. Nersa is conducting a public participation process after under-collecting approximately R76 billion in revenue, which will now be reconciled through future tariff determinations—costs that ultimately affect consumers nationwide.
Next steps
Municipalities must submit updated CoS studies to Nersa, which will be published for public comment before final tariffs are determined. Residents and businesses in Johannesburg are encouraged to follow the consultation process to understand how the new rates may affect them.
The redetermination of tariffs is expected to impact municipal budgets and electricity users across Johannesburg and other affected municipalities once the new rates are implemented.