AbaQulusi seeks reversal of NERSA tariff decision
AbaQulusi Local Municipality is attempting to reverse NERSA-approved electricity tariff adjustments affecting business customers.
The AbaQulusi Local Municipality is attempting to reverse electricity tariff adjustments made by the National Energy Regulator of South Africa (NERSA), according to a letter issued by the municipality.
Original application for increase
The letter states that the municipality originally applied for a 9.9% electricity tariff increase, saying the increase was needed to help cover the operational costs of its electricity distribution network.
According to the letter, the municipality did not apply cross-subsidies between customer categories because it believed all customers were already under considerable financial pressure.
NERSA adjusts tariff structure
The municipality says it received a letter from NERSA on May 29, 2026 informing it that the proposed tariffs had been rejected and adjusted.
According to the municipality, NERSA’s revised tariff structure reduces the increases that would apply to domestic and indigent customers, while increasing tariffs for commercial and industrial customers.
Concerns over economic impact
The letter states that the municipality believes the adjusted tariffs will place an additional burden on businesses in AbaQulusi and could negatively affect the local economy.
“The adjusted tariffs seriously disadvantage the business community of AbaQulusi,” the municipality states in the letter.
The municipality further argues that higher electricity costs for commercial and industrial customers could hinder local economic development.
Public inspection and consultation
According to the letter, copies of the municipality’s tariff application and NERSA’s adjusted tariff determination will be made available for public inspection at municipal cashier offices.
Ongoing engagement with regulators
The municipality says it is engaging with its legal advisers and NERSA in an effort to reverse the approved tariff structure before it comes into effect on July 1, 2026.
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