– Musina Municipality missed the deadline for submitting its 2026/27 electricity-tariff application to NERSA.
– The municipality claimed that failure to secure a tariff revision could contribute to a possible R94 million budget deficit.
– The DA demands disclosure of the legal costs and accountability for an application that should never have been necessary.
The Democratic Alliance (DA) in Limpopo calls for urgent answers and accountability after the ANC-led Musina Local Municipality failed to submit its 2026/27 electricity tariff application to the National Energy Regulator of South Africa (NERSA) on time.
Musina submitted its application after the 31 March deadline. NERSA initially refused to consider it.
This failure placed an important municipal revenue stream at risk and forced Musina to approach the Limpopo High Court for permission to submit the application late.
The municipality told the court that it could face a possible R94 million budget deficit if its tariffs were not revised, while Eskom’s higher electricity charges would place further pressure on its finances.
NERSA disputed whether Musina had provided enough evidence for the claimed deficit and pointed out that considering the application would not automatically lead to a tariff increase.
The failure is especially serious because Musina had another option. The Gauteng High Court order that set the 31 March deadline for municipalities to submit their tariff application to NERSA allowed municipalities to approach the court for more time if they could show good cause.
Musina neither met the deadline nor used this process to seek an extension.
The Limpopo High Court ultimately allowed the late submission and ordered NERSA to consider the application. However, the court criticised Musina for not acting earlier and ordered each party to pay its own legal costs.
This means Musina’s residents and ratepayers will have to carry the cost of litigation that could have been avoided through proper administration.
The case also raises serious questions about Musina’s financial management.
The municipality argued that, without the tariff revision, it would struggle to fund other municipal services because it earns significant income from electricity sales. The court rejected this argument and stated that electricity revenue should be ring-fenced and not used to fund unrelated services.
The DA has consistently called for the financial ring-fencing of services such as water and electricity.
The DA will demand that Musina disclose:
- The full legal costs;
- Who was responsible for the application;
- Why the deadline was missed;
- Why the process to seek more time was not used;
- Whether electricity revenue funds unrelated services;
- Whether disciplinary action will be taken; and
- Whether the legal costs will be referred to the Municipal Public Accounts Committee for investigation.
The court did not approve a tariff increase. It only ordered NERSA to consider the late application.
Musina’s residents should not have to pay for avoidable administrative failures of the ANC-led municipality. Those responsible must be identified and held accountable.