If you are one of ‘those’ very busy people with little to no time then read the Top/Bottom Line synopsis below to get a helicopter overview of the electricity tariffs submitted to NERSA for approval ahead of the 1 July 2026 tariff increase.
- No more Inclined Block Tariff (IBT 1, 2 and 3 fall away for one flat rate regardless of consumption)
- The miserly/masses/poor will pay 29.52% MORE per kWh
- The middle class/medium users will pay 9.24% MORE per kWh
- The power hungry/rich will pay 1.38% LESS per kWh
- Basic monthly charge for all
- Time of Use Tariffs have all increased by 10.95% (Solar System owners take note)
- Winter Energy Credit Rates have increased as follows: Peak (16.60%), Standard (45.98%) and Off-Peak (35.48%)
- Summer Energy Credit Rates have increased as follows: Peak (3.88%), Standard (24.77%) and Off-Peak (24.08%)
- At the date of submission to NERSA the NMB had 442 486 clients with registered meters
NMB’s Proposed 2026/27 Electricity Tariffs
The Nelson Mandela Bay proposed electricity tariffs for 2026/27 have been submitted to NERSA for approval.
So before you read on – please note that some/none/all of the numbers MAY change. Not very likely but a possibility before NERSA applies their rubber stamp and signature.
Contained within the document is a very significant shift – a retraction of the IBT (Inclining Block Tariff) system in Nelson Mandela Bay – which is the most significant structural shift in local electricity pricing in over a decade.
This move toward a flat-rate tariff (often paired with a higher fixed monthly service charge) is a trend currently sweeping through major South African metros for the 2026/27 cycle—following similar moves in Ekurhuleni and Mogale City.
The shift is almost certainly driven by the Cost of Supply (CoS) study that NERSA now strictly requires.
That logic usually follows three paths:
- Revenue Stability: IBT makes municipal income volatile. If residents save too much electricity (to stay in lower blocks), the city loses the high-margin revenue from Block 4. A flat rate provides a more predictable income stream.
- Cost Reflectivity: IBT is essentially a “wealth tax” where high users subsidize low users. Modern regulatory pressure is pushing for every user to pay the actual cost of their connection, regardless of how much they use.
- Simplification for Solar/SSEG: IBT is notoriously difficult to manage with bi-directional metering (feeding solar back into the grid). A flat rate simplifies the credit system for residents with solar installations.
There are 18 different tariffs for 2026/27:
| Tariff Name & Details | No. of Customers |
|---|---|
| ATTP Domestic Prepaid & Credit (T01)Indigent customers, single phase (230V 80A) | 64,588 |
| Non ATTP Domestic Prepaid (T01)Single & three phase (230V 80A & 400V 100A) | 342,040 |
| Non ATTP Domestic Credit (Scale 31 & 36)Single & three phase credit meters | 19,871 |
| Domestic – ELV Time of Use (31X & 31Z)Single phase supply 80Amps (230V) | 554 |
| Domestic – Low Voltage TOU (37X & 37Z)Three phase supply <300Amps (400V) | 98 |
| Domestic – LV TOU (Scale 39X)Complexes, Estates & Villages >300A | 17 |
| Domestic – Medium Voltage TOU (41X & 41Z)Complexes & Villages (6.6 to 66KV) | 2 |
| Small Business Prepaid (T32/37)Single phase supply (230V 80A) | 9,002 |
| Small Business Credit (T32/37)Single phase supply (230V 80A) | 2,332 |
| Small Business ELV Net Billing TOU (32X & 32Z)Single phase on SSEG | 1 |
| Medium Business Prepaid (T33 & 38)Three phase supply up to 250A (400V) | 89 |
| Medium Business Single Rate (T33/38)Supplies <300Amps (400V) | 3,055 |
| Medium Business LV TOU (33X)Importing only from NMBM grid <300A | 0 |
| Medium Business Metered Demand (T34/39)Supplies >300Amps (400V) | 0 |
| Medium Business LV TOU (34X, 34Y, 34Z)Supply above 300Amps (400V) | 493 |
| Large Business Metered Demand (T35)Metered demand (6600V and above) | 12 |
| Large Business MV/HV TOU (40X, 40Y, 40Z)TOU customers (6600-66000V 100-400A) | 331 |
| Large Business Extra High Voltage TOU (50X, 50Y, 50Z)>132,000V with/without Wheeling | 1 |
An interesting observation from the above is that there are 8 (Eight) Time of Use Tariffs. These would, in the main, be for renewable energy (Solar Systems) installed with the proper smart meters in place.
If we add up all the clients reflected in all the Time of Use Tariffs we get to 1004 Renewable Energy installations in the NMB Municipal area of responsibility.
Now you and I both know that it is impossible that ONLY 1004 Solar Systems have been installed in NMB. So, where are all the others?
Only 554 Domestic Solar Installations in NMB?
Only 554 domestic customers are currently on the “Extra Low Voltage TOU” (31X/31Z). This suggests that if the IBT is retracted and everyone moves toward a flatter structure, there is a huge opportunity for consumers to save money by using geyser automation by Shelly.
Tariff Help is at Hand:
If you are confused over the tariffs feel free to consult with Straton Electrical for some guidance.
