Unlawful tariffs and soaring power costs threaten NMB jobs and investment

Résumé détaillé

Soaring electricity costs – driven by municipal tariffs Nersa now admits were unlawfully approved – are threatening the competitiveness and sustainability of Nelson Mandela Bay’s…

Soaring electricity costs – driven by municipal tariffs Nersa now admits were unlawfully approved – are threatening the competitiveness and sustainability of Nelson Mandela Bay’s manufacturing sector.

Nelson Mandela Bay businesses are increasingly spending more on electricity than on wages or logistics, placing additional pressure on operating costs and stifling growth opportunities, expansion and further investment, says Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen.

That warning comes as major industrial electricity users take the National Energy Regulator of South Africa (Nersa) to the Gauteng High Court in Pretoria over unlawfully approved municipal electricity tariffs.

Businesses in several metros – including Nelson Mandela Bay – were forced to pay 76% more for electricity during the 2025/26 financial year than it actually cost the municipality to supply the service, reports Moneyweb.

According to court papers, Nersa’s tariff approvals for five municipalities – Nelson Mandela Bay, Johannesburg, Ekurhuleni, Emfuleni and Madibeng – “are reviewable, unlawful and invalid, and fall to be set aside”.

The regulator admitted that it had approved municipal tariff applications containing significant errors without adequately checking the underlying figures.

The applicants – which include Nelson Mandela Bay-based Coega Steels – want the unlawful tariffs set aside and are seeking either retrospective credits to their electricity accounts, with interest if repayment is delayed, or temporary alternative tariffs while Nersa recalculates the charges.

Daily Maverick sent questions to Nersa on Wednesday and the Nelson Mandela Bay Municipality on Thursday regarding the errors, but neither had responded by the time of publication. Their responses will be added once received.

The stakes are particularly high in Nelson Mandela Bay, where the automotive and manufacturing sectors are key drivers of the local economy.

Début de l'article, extrait de Daily Maverick. Pour lire la suite, ouvrez l'article chez le média.