A new R582.64 monthly levy imposed on certain properties with access to the electricity network but no grid connection has sparked a legal challenge in South Africa.
Civil action group AfriForum has issued a letter of demand to the Thaba Chweu Local Municipality in Mpumalanga and the National Energy Regulator of South Africa (Nersa), questioning the legality of the new charge.
According to Nersa’s Reasons for Decision on Thaba Chweu’s 2026 electricity tariff application, the regulator approved a R582.64 levy for “networks that are available but not connected”.
The municipality serves 19,294 customers, with residential users accounting for 53.63% of electricity sales.
AfriForum says the charge is being applied to some properties that rely entirely on their own electricity generation, including solar power, and are not connected to the electricity grid.
The organisation argues that such households should not be required to pay for electricity network capacity they do not use.
It has described the levy as potentially unlawful and questioned whether the municipality followed the required public participation and tariff approval processes.
AfriForum has also raised concerns about whether the charge is supported by an appropriate cost-of-supply study and complies with municipal and electricity legislation.
The new levy comes alongside other charges for small-scale embedded generation (SSEG) customers in Thaba Chweu. These customers are required to pay a basic monthly fee of R321.11 and an access charge of R10.92.
Those charges were introduced in July 2026.
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AfriForum said municipalities have the right to recover legitimate electricity network costs but argued that such charges must be lawful, transparent, cost-reflective and properly authorised.
The organisation also pointed to financial and technical challenges at Thaba Chweu’s electricity business.
Nersa reported energy losses of 53.16% at the municipality, which it said were undermining its financial sustainability.
The municipality purchased R393.2 million worth of bulk electricity while generating R360.2 million in electricity sales revenue, leaving about R33 million in unrecovered costs.
Nersa said limiting energy losses to 12% could significantly improve the municipality’s financial position.
AfriForum said it first wrote to the municipal manager on July 20 seeking documents relating to the introduction of the tariffs, including the cost-of-supply study, public notices, council resolutions and records of public comments.
It has now given the municipality and Nersa 10 days to provide satisfactory explanations and supporting documentation.
If the matter is not resolved, AfriForum said it intends to approach the High Court for relief.
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Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
