In less than a month, Newcastle, KwaZulu-Natal residents will face a notable increase in their financial outlays as electricity tariffs are set to climb by an additional 13%. This imminent rise stems from the National Energy Regulator of South Africa (NERSA) initiating its review process for municipal tariff applications for the 2025/26 financial year, with implementation slated for 1 July 2025.
NERSA has confirmed the procedural timeline, indicating that a notice was issued, setting 30 April 2025 as the deadline for municipal tariff submissions.
To date, “NERSA has received a total of 130 applications, all of which are supported by cost of supply studies. Nine of these applications were published for public comments on 24 April 2025, 91 applications published on 2 May 2025 and a further 30 applications published on 9 May 2025,” as stated by NERSA. These applications are publicly accessible on the NERSA website and social media platforms, facilitating public comment.
Among the municipalities that have formally submitted their proposals for review are the Newcastle Municipality, which is seeking a 13% increase.
As reported by Newcastillian News on 6 May 2025, should this proposal gain approval, it is projected to bolster the Municipality’s revenue streams, with electricity service charges anticipated to generate a significant R1.1015 billion. Furthermore, the eNdumeni (Dundee) Municipality has proposed a 13.30% increase for its electricity tariffs, while the eMadlangeni (Utrecht) Municipality is advocating for a 13.20% increase in its electricity tariffs.
It should be highlighted that NERSA underscores that all municipalities are legally mandated to calculate their electricity tariffs based on the actual costs incurred in supplying customers.
“This is a legal requirement in line with the judgement of the Nelson Mandela Bay (the “NMB”) matter which NERSA cannot deviate from. This requirement will be enforced to all municipalities for their 2025/26 electricity tariffs,” the energy regulator emphasised.
Failure to adhere to this fundamental requirement could result in the non-approval of an offending municipality’s tariffs. NERSA has affirmed its commitment to an inclusive decision-making process, stating, “NERSA values the input of all stakeholders, and its decision-making process will consider the written comments received, as well as the thorough analysis of the applications.” NERSA’s final decision will be made after considering written comments from affected stakeholders and the analysis performed by NERSA officials.
On this note, NERSA stated that it invites all stakeholders to make their comments on the published tariff applications for the FY2025/26 to the following email address: [email protected] on or before 20 June 2025.
The impending electricity tariff increases signal a significant financial adjustment for residents and businesses in Newcastle and surrounding municipalities.
Stakeholder participation is paramount in this process. By submitting comprehensive and timely comments, the public can directly influence NERSA’s ultimate decisions, thereby contributing to a more transparent and equitable determination of electricity costs for the upcoming financial year. Your engagement is vital to shaping the future of energy affordability in these regions.
What are your thoughts on the above? Share your views in the comment section below.
8 Responses
Thay are mad!!! We already had an increase from April 2025!!!! Where does the money go in any case???
The proposed application by Municipality lacks vision, in the sense that it does not take into consideration the impact this will have to business sector in our area. Secondly unemployment rate of our District is too high, most house hold are supported by pensioners as the youth and working class are unemployed and contribute nothing to the economy.
I think the increase for Newcastle is high considering the fact that we are paying high availability charges with VAT. This is escalating the people’s bills to very high figures. The Newcastle Municipality should charge a lower increase because of the high Electricity availability charges.
Gee this is ridiculous the municipality wastes so much money and we have to pay up
Like to know why was there a big increase last month.
I suppose you must have a tolerance for incompetence.
This is nonsense already paying surplus charges for what.
This Hike in Electricity is Absolutely not needed people are suffering as it is were is it gowing to end Hell to play