Ruling on tariff application process usurps Treasury powers, says Nersa

THE National Energy Regulator of South Africa (Nersa) has raised concerns that last week’s court judgment in its legal dispute with AfriForum over municipal electricity tariff timelines encroaches on the powers of the Minister of Finance as set out in the Municipal Finance Management Act (MFMA).

- BANELE GININDZA

Nersa also noted that the ruling was delivered without the National Treasury's participation, despite its central role in municipal budgeting processes.

Nomfundo Maseti, full-time regulator member for piped gas and acting member for electricity, said Nersa is likely to appeal the judgment but must, as a courtesy, inform the Minister of Finance of its implications, particularly the new court-imposed timelines, which she said are misaligned with MFMA requirements.

"The court has made out these orders without an opportunity for those that are given powers in the MFMA to have an opportunity to indicate whether these orders are going to be practical or not," Maseti said.

"They have not been heard. That on its own presents a challenge because again the issue the brought by Afriforum before the court, it seems to me in as far as the orders are concerned now, it goes beyond the issue that was brought in there."

She was addressing municipalities at a workshop on the tariff application process for the 2026/27 financial year.

Maseti warned that the ruling introduces impracticalities for municipalities and proposes timelines that clash with legislation they are required to follow.