NELSON MANDELA BAY MUNICIPALITY - Nelson Mandela Bay Municipality

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NELSON MANDELA BAY MUNICIPALITY COMMITS TO IMPLEMENTING HIGH COURT ORDER WHILE PROTECTING DOMESTIC ELECTRICITY CONSUMERS

Published: August 05, 2026

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The Nelson Mandela Bay Municipality acknowledges today's High Court Order relating to the Municipality's domestic electricity tariff structure for the 2026/2027 financial year. The Order, granted by agreement between the parties in respect of Part A of the proceedings, provides a legal framework for the restoration of the Inclining Block Tariff (IBT) applicable to qualifying domestic electricity consumers, subject to the regulatory approvals and implementation processes prescribed by the Court.

The Municipality fully respects the authority of the Courts and confirms its commitment to implementing the Order diligently, transparently and within the prescribed timeframes. As a constitutional institution of local government, the Municipality recognises that public confidence is strengthened when government demonstrates equal respect for democratic decision-making, the rule of law and judicial oversight.

This matter extends beyond electricity tariffs. It concerns the confidence that residents place in their Municipality to govern responsibly, communicate openly and act in the public interest. Throughout this process, the Municipality has remained mindful that electricity is fundamental to household wellbeing, economic activity and the sustainability of communities across Nelson Mandela Bay. The Municipality also recognises that the implementation of the domestic electricity tariff structure from 1 July 2026 generated understandable concern among many residents.

Those concerns were heard, and the Municipality has remained conscious that behind every municipal account is a household or business seeking certainty, affordability and confidence in local government.

Executive Mayor Cllr Babalwa Lobishe said the Municipality's foremost responsibility has always been to place residents at the centre of every decision.

"At the heart of this matter are the people of Nelson Mandela Bay. We recognise that electricity costs directly affect household budgets, pensioners, students, small businesses and employers. When residents expressed concern, we listened. When the Court provided clarity, we accepted our constitutional responsibility to implement its Order. That is what accountable government requires.

Our commitment extends beyond legal compliance. It is about demonstrating responsible leadership, communicating honestly with our communities and ensuring that every qualifying domestic electricity consumer receives the benefit of the implementation process directed by the Court.

Residents rightly expect their Municipality to lead with integrity, transparency and accountability. We accept that responsibility. Throughout this process we will continue placing the interests of our communities first while respecting both the authority of the Courts and the constitutional principles upon which our democracy is founded."

The Municipality believes that resolving Part A of the proceedings by agreement provides the most responsible path forward at this stage. Rather than prolonging interim litigation and uncertainty for residents, the agreement establishes a structured implementation framework that provides certainty to qualifying domestic electricity consumers while preserving the orderly determination of the substantive legal issues contained in Part B.

The Municipality wishes to clarify that the domestic electricity tariff structure implemented from 1 July 2026 was not the result of a unilateral administrative decision by the Executive Mayor, the Mayoral Committee or any individual political party.

The tariff structure formed part of the Municipality's 2026/2027 Budget and Tariffs, which were considered, debated and adopted by the Municipal Council through a duly constituted Council resolution following the statutory budget, consultation and public participation processes prescribed by law.

In South Africa's constitutional system of local government, the Municipal Council is the highest decision-making authority. Once a lawful Council resolution has been adopted, it becomes a decision of the Municipality and is implemented by the municipal administration in accordance with its constitutional and statutory obligations. The implementation of the approved tariff structure therefore reflected the Municipality's responsibility to implement a lawfully adopted Council decision while simultaneously giving effect to the national electricity tariff reforms approved by the National Energy Regulator of South Africa (NERSA).

Following implementation of the approved tariff structure, legal proceedings were instituted challenging aspects of the Municipality's implementation. The application before the High Court comprises two distinct parts. Part A sought interim relief pending the determination of the substantive review proceedings contained in Part B. Following constructive engagement between the parties, agreement was reached regarding the interim relief sought in Part A, and that agreement has now been made an Order of Court.

The Municipality emphasises that the agreement reached in respect of Part A should not be interpreted as an admission that the Municipality acted unlawfully in implementing the tariff structure adopted by Council. The agreement relates exclusively to the interim relief sought in Part A and provides a practical framework for implementation pending the determination of the substantive legal questions that remain before the Court in Part B. The Municipality will continue to participate fully in those proceedings in accordance with legal advice and the directions of the Court. It would therefore be inappropriate to comment further on matters that remain before the Court.

Executive Mayor Lobishe said responsible government requires institutions to distinguish between defending legal positions and protecting the interests of residents.

"Government has a responsibility to defend its lawful decisions where appropriate, but it also has a responsibility to minimise uncertainty for the communities it serves. Those responsibilities are not mutually exclusive. In agreeing to the interim relief contained in Part A, our objective was to provide certainty for residents while preserving the orderly determination of the substantive legal issues through the Courts.

This demonstrates that institutions can protect their legal rights while simultaneously acting in the broader public interest. Healthy democracies are strengthened when institutions explain Public their decisions openly, account for their actions and respect the outcomes of independent judicial processes."

In terms of the High Court Order, the Municipality has been directed to restore the Inclining Block Tariff applicable to qualifying domestic electricity consumers, obtain the necessary regulatory approval from NERSA for the consequential tariff amendments, implement the restored tariff structure retrospectively with effect from 1 July 2026 and allocate the appropriate credits to qualifying domestic electricity consumers in accordance with the implementation framework and timelines set out in the Court Order.

The Municipality has activated a coordinated institutional implementation programme involving Legal Services, Electricity and Energy, Revenue Management, Information Technology, Finance, Customer Care and Corporate Services. These multidisciplinary teams have commenced detailed planning to secure the required regulatory approvals, restore the Inclining Block Tariff within municipal billing and vending systems, identify qualifying customer accounts, recalculate electricity charges retrospectively from 1 July 2026, validate all billing adjustments, process customer credits accurately and communicate implementation milestones to residents throughout the process.

Residents will not be required to submit applications or lodge claims for qualifying credits. Once the required regulatory approvals have been obtained and the technical implementation has been completed, qualifying credits will be processed automatically through the Municipality's billing systems and reflected on customer accounts in accordance with the Court Order. The Municipality appreciates that residents will wish to know when implementation will be completed and when credits will begin reflecting on their accounts.

While certain implementation milestones remain dependent on the regulatory approval process contemplated by the Court, the Municipality is committed to progressing every aspect of implementation without unnecessary delay and will provide regular public updates as each milestone is achieved.

Executive Mayor Lobishe said transparency and accountability will remain the defining principles throughout implementation.

"The confidence of our residents is earned through our actions. We are committed to implementing the Court Order professionally, fairly and transparently while ensuring that residents remain informed throughout every stage of the process. Open communication and public accountability are essential to strengthening confidence in local government. Every democratic institution is accountable to the Constitution and the rule of law. Today's Court Order demonstrates that those constitutional safeguards are working as intended. As a Public Municipality, we embrace that responsibility because accountability strengthens institutions and ultimately serves the interests of our residents."

The Municipality believes that the implementation of today's Court Order presents an opportunity not only to provide certainty for qualifying domestic electricity consumers, but also to reinforce the values that underpin democratic local government. Public confidence is strengthened not because institutions never face legal challenges, but because they respond with integrity, transparency, professionalism and accountability. The Municipality remains committed to maintaining constructive engagement with residents, organised business, civil society, political stakeholders and all interested parties throughout the implementation process.

Executive Mayor Lobishe concluded by reaffirming the Municipality's commitment to constitutional governance, service delivery and ethical leadership.

"Local government exists to improve people's lives. Every budget we approve, every tariff we implement and every service we deliver must ultimately advance that purpose. As we implement this Court Order, our focus remains firmly on protecting residents, strengthening public confidence and continuing to deliver reliable municipal services with professionalism and integrity.

We thank the residents of Nelson Mandela Bay for their patience, constructive engagement and continued confidence in democratic institutions. Together, we will continue building a Municipality founded on constitutional governance, responsible financial management, transparency, accountability and service excellence. Our commitment remains unwavering: to place residents first, uphold the rule of law and build a Metro that works for everyone."

The Nelson Mandela Bay Municipality thanks all residents, businesses, organised formations and stakeholders who have engaged constructively throughout this process. The Municipality remains fully committed to implementing the High Court Order faithfully, communicating openly with the public and continuing to deliver reliable, affordable and financially sustainable municipal services in the best interests of every community in Nelson Mandela Bay.

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NELSON MANDELA BAY MUNICIPALITY COMMITS TO IMPLEMENTING HIGH COURT ORDER WHILE PROTECTING DOMESTIC ELECTRICITY CONSUMERS

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