Nelson Mandela Bay Seeks Residents’ Repayment of Electricity Rebates

What changed

Nelson Mandela Bay Municipality is preparing to argue that it should keep charging domestic customers a flat R4.50 per electricity unit, despite a 4 August Gqeberha high court order requiring the cheaper Inclining Block Tariff and credits for overpayments.

That reverses the municipality’s earlier acceptance of the order. Acting city manager Lonwabo Ngoqo said the case will return to court later in 2026, and warned that restoring cheaper first-block electricity could create a hole in the 2026/27 budget. Residents could face repayment claims if the municipality wins.

Why it matters

The dispute turns on the first 300 units a household uses each month. Under the Inclining Block Tariff, those units cost less. Under the disputed flat rate, every unit costs R4.50.

That makes this more than a courtroom argument over pricing. It is a fight over whether household relief can be reversed because the municipality built its budget around higher electricity revenue. If the challenge succeeds, affected customers may remain on the flat rate and could face claims involving rebates or credits. If it fails, the municipality will need to absorb the revenue gap or adjust other budget lines.

The National Energy Regulator of South Africa approved the tariff amendments needed to restore the cheaper structure on 7 September. It rejected the municipality’s proposed R91.54 monthly basic charge for domestic prepaid customers, removing one proposed way to recover lost revenue. Commercial, industrial, time-of-use and other unaffected tariffs remain unchanged.

The immediate outlook is uncertainty: the legal challenge and billing changes may run in parallel. Low-consumption households stand to benefit if the court order and approved amendments take effect, while municipal officials must find a funded response to lower electricity income. A postponed Budget and Treasury Committee meeting, caused by most members being absent, adds a small but telling wrinkle to an already awkward budget problem.

What to watch next

• A later-2026 high court hearing or ruling on the municipality’s Part B tariff challenge.
• Whether affected domestic accounts move to the Inclining Block Tariff and receive credits.
• Whether the municipality approves budget savings, new funding or another permitted revenue measure to cover the gap.