NELSON MANDELA BAY MUNICIPALITY OUTLINES TRANSITIONAL REGULATORY PROCESS FOR RETROSPECTIVE ELECTRICITY TARIFF ADJUSTMENTS
Published: August 27, 2026<< BACK TO NEWS
Nelson Mandela Bay Municipality (NMBM) has initiated the formal regulatory and technical processes required to comply with the recent High Court directive ordering the retrospective restoration of the Inclining Block Tariff (IBT) system. The Municipality is actively working to transition qualifying domestic consumers back to the IBT structure, effective retroactively from 1 July 2026, pending final national regulatory approval.
While the NMBM Council approved a 10.95% electricity tariff increase for the 2026/27 financial year, the billing model initially shifted from the traditional IBT system to a flat electricity tariff. Following the High Court’s subsequent order to reinstate the IBT for qualifying consumers, the Municipality has mapped out a clear implementation pathway to ensure full legal compliance, financial sustainability, and consumer fairness.
The implementation process is unfolding through the following critical phases:
Formal NERSA Application: The Municipality has officially applied to the National Energy Regulator of South Africa (NERSA) for approval of the consequential tariff amendments. The proposed structure applies the council-approved 10.95% increase directly onto the historical IBT blocks.
Regulatory Interdependence: In strict compliance with standard energy protocols, the restored tariff structure cannot be legally activated or loaded onto meters until NERSA grants its formal approval.
Technical System Reconfiguration: Once regulatory clearance is obtained, municipal technical and financial teams will reconfigure the billing architecture to transition affected accounts from the flat rate back to the tiered IBT structure.
Retrospective Adjustments and Credits: Following system updates, the Municipality is currenty executing a comprehensive reconciliation of all qualifying accounts. Consumers who were affected by the flat tariff structure retrospectively from 1 July 2026 will receive applicable financial credits or adjustments on their accounts.
An Inclining Block Tariff operates by charging for electricity in predetermined consumption tiers. The first block of energy is billed at the lowest rate, with higher rates applying sequentially as household consumption increases. This structure is designed to safeguard lower-volume users, meaning the impact of the correction will vary depending on individual household consumption patterns during the retroactive period.
To ensure absolute transparency throughout this transitional phase, the Municipality’s Electricity & Energy Directorate will deploy a city-wide public awareness campaign. Officials will conduct a comprehensive series of community engagement meetings across all six regional clusters. These sessions will serve to educate residents on the structural differences between flat and tiered tariffs, clarify the retrospective credit rollout timeline, and give citizens an opportunity to ask questions directly to municipal leadership.
The Municipality remains fully committed to executing the High Court's directive efficiently and transparently. Regular updates regarding NERSA’s approval progress and the subsequent rollout of customer billing credits will be communicated through official municipal channels.
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