Nelson mandela bay: The Nelson Mandela Bay Municipality has announced that it will comply with a High Court order mandating the restoration of the Inclining Block Tariff (IBT) for eligible domestic electricity consumers in the 2026/27 financial year.
According to South African Government News Agency, the court order, which was agreed upon by the involved parties in Part A of the legal proceedings, sets a legal precedent for reinstating the tariff. This action is contingent on obtaining the necessary regulatory approvals from the National Energy Regulator of South Africa (NERSA).
The municipality has expressed its respect for the court's authority and commitment to implementing the order transparently and within the designated timeframes. Executive Mayor Babalwa Lobishe emphasized the municipality's recognition of the impact that electricity costs have on various community members, including households, pensioners, students, and businesses. She assured that the municipality is dedicated to ensuring that every qualifying domestic electricity consumer benefits from the implementation process.
The municipality clarified that the interim agreement should not be seen as an admission of unlawful action concerning the tariff structure implemented from 1 July 2026. The tariff structure was part of the 2026/27 Budget and Tariffs, approved by the Municipal Council following statutory budget, consultation, and public participation processes.
The legal challenge pertains to the tariff structure's implementation, with the High Court proceedings split into two parts. Part A sought interim relief pending the outcome of substantive review proceedings in Part B. Constructive engagement led to an agreement on the interim relief sought in Part A, which has now been formalized as a Court Order.
The court order directs the municipality to restore the IBT for qualifying domestic electricity consumers, secure necessary regulatory approval from NERSA for tariff amendments, and implement the restored tariff structure retrospectively from 1 July 2026. The municipality must also allocate appropriate credits to qualifying consumers according to the Court Order's framework and timelines.
To facilitate this process, the municipality has established a multidisciplinary implementation team. This team includes officials from various departments such as Legal Services, Electricity and Energy, Revenue Management, Information Technology, Finance, Customer Care, and Corporate Services. They have begun planning to secure regulatory approvals, restore the IBT in billing systems, identify qualifying accounts, recalculate charges from 1 July 2026, validate billing adjustments, process credits accurately, and keep residents informed throughout the process.
The municipality stated that qualifying customers would not need to submit applications or claims for credits. Once regulatory approvals are obtained and technical implementation is complete, qualifying credits will be automatically processed and reflected on customer accounts.
While some implementation milestones depend on NERSA's approval process, the municipality assured it would proceed without unnecessary delay and provide regular updates as each milestone is achieved. Transparency and accountability will guide the implementation, as highlighted by Mayor Lobishe, emphasizing the importance of open communication and public accountability in strengthening confidence in local government.
Mayor Lobishe reaffirmed the municipality's commitment to constitutional governance, service delivery, and ethical leadership, stating that local government exists to improve lives. She emphasized that every budget, tariff, and service delivered must advance that goal, with a focus on protecting residents and maintaining public confidence.