WATT A BURDEN: Unlawful tariffs and soaring power costs threaten NMB jobs and investment

Soaring electricity costs, driven by municipal tariffs that Nersa now admits were unlawfully approved, are threatening the competitiveness and sustainability of Nelson Mandela Bay’s manufacturing sector, according to the Nelson Mandela Bay Business Chamber. Businesses in the region are spending more on electricity than on wages or logistics, placing additional pressure on operating costs and stifling growth opportunities.

This has led several major industrial electricity users to take Nersa to the Gauteng High Court in Pretoria, alleging that the tariff approvals for five municipalities, including Nelson Mandela Bay, are unlawful and invalid. The businesses are seeking either retrospective credits for their electricity accounts, with interest if repayment is delayed, or temporary alternative tariffs while Nersa recalculates the charges.

The stakes are particularly high in Nelson Mandela Bay, where the automotive and manufacturing sectors are key drivers of the local economy, and unemployment stands at 32.2% in the second quarter of 2026.

Brief written by urgent.news from Daily Maverick's own syndicated text. Machine-written — may contain errors; check the original before relying on it.