ELECTRICITY REGULATION: DA TO TABLE AMENDMENT BILL

Democratic Alliance MP Kevin Mileham has gazetted a notice announcing his intention to table an Electricity Regulation Amendment Bill in Parliament. Serving as the Bill’s procedurally required pre-tabling explanatory summary, the notice also calls for public comment on the proposals concerned. The deadline for input is 15 November 2026.

According to its explanatory summary, the amendment Bill envisages will seek to give practical effect to two recent High Court (North Gauteng) rulings by:

  • ‘clos(ing) the accountability gaps that have allowed the National Energy Regulator (of South Africa) (NERSA) to preside over … (significant sums) in calculation errors without consequence’, and to that end
  • ‘codifying ‘the principle of finality regarding tariffs set or approved by NERSA’ by:
    • providing that any error made in setting or approving a tariff may only be corrected, varied, or set aside by judicial review
    • ensuring that a NERSA-set or approved tariff:
      • ‘may not be implemented in a financial year that has already commenced’, and
      • ‘must be applied prospectively in order to avoid back-dated retrospective clawbacks’, and
  • making it mandatory for cost of supply studies to accompany all tariff applications submitted to NERSA.

Once finalised, tabled, passed enacted and operationalised, the Bill is therefore expected to:

  • ‘end the practice of labelling multi-billion-rand calculation errors as clerical errors in order to avoid public scrutiny’
  • ensure that the functus officio doctrine regarding invalid administrative action is applied, and
  • ‘end the era of benchmarking and unsubstantiated municipal hikes (with their associated) potential retrospective and retroactive billing chaos’.

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Published by SA Legal Academy Policy Watch

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