Following the recent Integrated Development Plan (IDP) and Budget roadshows, Mogale City Local Municipality (MCLM) has submitted its formal electricity tariff application to the National Energy Regulator of South Africa (NERSA) on April 20.

Residents and businesses are invited to submit comments on the application via email to idp@mogalecity.gov.za or tshepo.menyatso@mogalecity.gov.za by May 10.

During the roadshows, the municipality proposed the following changes:

• The discontinuation of the Inclined Block Tariff (IBT) structure, to be replaced with a single tariff rate (c/kWh), initially based on the second block of the IBT structure
• The introduction of two additional charges: a Generator Capacity Charge and a Legacy Charge
• A proposed 12.20% increase in existing electricity tariffs

According to MCLM senior communications practitioner, Tendani Shavani, the municipality values the input received from residents during the consultation process.

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After considering this feedback, the municipality revised its proposals as follows:

• The transition away from the IBT structure will still proceed. However, the revised single tariff will now be based on the first block of the IBT structure, making it more affordable for consumers.
• The implementation of the Generator Capacity Charge and Legacy Charge has been suspended for the 2026/2027 financial year, pending further analysis.

“These decisions were made in recognition of the municipality’s financial sustainability challenges, while also taking into account the broader cost drivers of electricity supply. It is important to note that electricity tariffs are not determined solely by the cost of bulk purchases from Eskom, but also include operational and infrastructure-related costs required to ensure reliable service delivery,” said Shavani.

Access to the application

Residents and businesses ar e advised that electricity tariff approvals are not determined by the municipality but are subject to NERSA’s regulatory processes. Any proposed tariff adjustments or increases will only be implemented once formally reviewed and approved by NERSA. Therefore, the implementation of any tariff changes depends entirely on NERSA’s approval.

The full tariff application is available on the NERSA website. Residents and businesses are encouraged to review the document and submit their comments within the specified timeframe.