MEDIA RELEASE
TO: All Media
ATTENTION: Journalists and Editors
ISSUED: Tuesday, 18 September 2025
RE: CLARITY ON INCLINED BLOCK TARIFF COURT MATTER
On 28 June 2024, the National Energy Regulator of South Africa (NERSA) approved Mogale City Local Municipality’s electricity charges under the Inclined Block Tariff (IBT) structure. This approval provided the legal basis for the municipality to implement the tariff adjustments and to apply credit control measures on accounts that are in arrears.
Following this implementation, a group of residents (AfriForum) legal reasons, unable to challenge the IBT structure in court. Mogale City successfully defended the matter, and the subsequent appeal by the ratepayers was dismissed. The matter was then taken to the Supreme Court, where it remains pending and is therefore sub judice.
While the municipality cannot discuss the details of a matter that is before the courts, it is important to reiterate the following:
- The IBT tariff was duly approved by NERSA and remains applicable across the entire city.
- The municipality is legally obligated to apply the tariff structure uniformly and without exception.
- No community or group of residents may be charged a different tariff from that approved by NERSA, and credit control measures will continue to be applied fairly and consistently.
Mogale City remains committed to compliance with regulatory approvals, fairness in tariff implementation, and respect for ongoing judicial processes.
Ratepayers are reminded that the approved tariffs were designed to promote efficient energy usage, charging higher fees for higher consumption, and lower fees for lower consumption. This structure further encourages the use of prepayment accounts by households and micro-enterprises, enabling customers to better manage their electricity consumption. Residents in financial difficulty are encouraged to approach the municipality to enter a payment arrangement, or to apply for Indigent Management relief subject to meeting the criteria. These options provide structured support while the municipality intensifies debt collection measures to ensure continued service delivery.
Ends.
Issued by Mogale City Communications Division