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UNCOOPERATIVE GOVERNANCE: Nelson Mandela Bay wants residents to repay electricity rebates if it wins court bid

The Nelson Mandela Bay municipality is challenging the return to cheaper electricity and says residents could have to repay rebates and credits if it succeeds in keeping the R4.50 flat tariff.

UNCOOPERATIVE GOVERNANCE: Nelson Mandela Bay wants residents to repay electricity rebates if it wins court bid

The Nelson Mandela Bay municipality is challenging the return to a cheaper electricity tariff and is threatening to ask residents to repay rebates if it wins the court case, according to recent reports. The municipality currently charges residents R4.50 per unit of electricity, regardless of consumption. However, a court ordered it to revert to the previous system, which provided lower rates for the first 300 units of electricity each month.

Many households ended up paying more when the cheaper system was scrapped. The DA took the municipality to court, and a high court ruled in their favor on August 4, 2026, ordering the metro to restore the old tariff and credit residents for overpaid amounts. Now, however, the municipality wants to return to the flat rate, stating that the Inclining Block Tariff (IBT) could leave a financial hole in its budget.

The municipality's acting city manager, Lonwabo Ngoqo, stated that returning to the IBT could negatively affect the budget, as it was built around the higher flat rate. The mayor, Babalwa Lobishe, initially welcomed the return to the IBT but has since reversed her position, preparing to argue why the R4.50 flat rate should be retained in court.

Nersa, the energy regulator, approved the municipality's application to return to the IBT for affected domestic customers but rejected their proposed monthly basic charge for domestic prepaid customers.

Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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