UNCOOPERATIVE GOVERNANCE: Nelson Mandela Bay residents confused and frustrated by electricity rebate glitches

Nelson Mandela Bay residents who were overcharged for electricity after the metro scrapped its inclining block tariff (IBT) are now facing a new problem: the rollout of rebates and the return to the cheaper tariff are being hampered by delays and technical glitches.After the Gqeberha High Court ruled in favour of the DA’s application for the metro to revert to the IBT in August and retrospectively repay all affected customers from 1 July, residents should once again be paying the lower rate of R3.80 per kWh. But this does not seem to be the case for everyone.The ruling followed the municipality’s decision to replace the IBT with a flat rate of about R4.50 per kWh from 1 July.As of 1 September, some residents were still being charged the flat rate for prepaid electricity, while others who bought electricity at the reduced rate had received a free electricity token as reimbursement and some had not.Daily Maverick understands that the municipality has so far processed rebate calculations only for purchases made between 1 and 31 July.This means calculations for August 2026 have not yet been completed.These discrepancies have caused confusion and concern in communities across the metro, which prompted DA councillors to submit formal questions to administrative heads in the municipality to seek clarity on the issues raised. Ward 7 councillor Brendon Pegram wrote to the acting chief financial officer, Luyanda Ndeya, and acting city manager, Lonwabo Ngoqo, on 1 September after he received complaints from residents.Nelson Mandela Bay DA ward 7 councillor Brendon Pegram wrote to the office of the chief financial officer asking about the electricity rebates that some residents are not receiving. (Photo: Brendon Pegram / Supplied)“I have been inundated with calls, messages and complaints regarding the electricity tariff rebates, the different electricity rates being charged, and the free electricity tokens that qualifying customers are meant to receive. I fully understand the frustration and confusion being experienced by residents. The situation is unfortunately not straightforward, as different customers appear to be receiving different outcomes when purchasing electricity.”Reports to Pegram by residents include:Some customers bought electricity at the previous rate of R4.51 per unit and received their free electricity token;Some customers bought electricity at the reduced rate of R3.80 per unit but did not receive their free token;Some customers bought electricity at R3.80 per unit and received their free token; andCustomers buying through Wire-It have also reported discrepancies, with some receiving tokens and others not.Pregram said this was causing considerable confusion, particularly when residents compared their purchase slips and found that people in similar circumstances had been treated differently. “Today I engaged with a number of municipal officials, including officials within the Revenue Division and Budget and Treasury, to establish exactly what is happening. The information provided to me indicates that there is currently a significant system-related problem affecting the processing and allocation of the electricity rebates/tokens,” he stated.“Importantly, officials have indicated that they are aware of the discrepancies and I have been assured that they will be addressed and that customers who are entitled to rebates but have not yet received them will not simply be forgotten.”Pegram has yet to receive a response to his correspondence.In its implementation plan, the municipality proposes configuring the revised tariff that applied to qualifying domestic prepaid customers in 2025/26 with the approved 10.95% annual increase applied to the previous rates from 1 September, although this is subject to Nersa approving the consequential tariff amendments.Once approved, the municipality says it will load the revised IBT rates onto its vending and billing systems.Under the IBT, households paid a lower rate for their first 300 kWh each month, with higher rates applying as consumption increased.Prepaid electricity customers are set to receive additional electricity units, while residents who receive conventional municipal bills will have the money owed to them credited to their accounts. For domestic prepaid customers who do not fall under the metro’s Assistance to the Poor programme, the proposed tariff structure includes a basic monthly charge of R91.54, including VAT.Municipal spokesperson Sithembiso Soyaya did not respond to questions sent on Friday despite several reminders.DA councillor Ondela Kepe has also questioned the proposed charge. He wrote to the City’s senior director for retail and commercial management, Dr Mvuleni Bukula, and acting executive director for electricity, Noluvuyo Mbangata, seeking clarity on the IBT and the R91.54 monthly charge.In his letter, Kepe asked:The exact date on which the municipality ceased charging the inclined block tariff pursuant to the court judgment;Has the R91.54 basic charge been approved by Nersa and is it being implemented; andIf the charge is implemented, how is it being applied to customers and what impact does it have on the unit cost of electricity.Kepe also asked to see the City’s response to Nersa or proof of implementation of the court judgment, including the municipality’s application for the R91.54 basic charge and supporting documents that were submitted to Nersa.Nelson Mandela Bay DA councillor Ondela Kepe, (Photo: Ondele Kepe) Kepe said there had been no official communication about the monthly fee, which he believes the City plans to use to offset revenue losses resulting from the revised tariff.“We also seek clarity about the R91 basic/availability charge that the City plans to charge the residents. From what we understand, they want to make up for the money they will lose from readjusting the tariff rate with this new amount. “This is what residents are told in the public meetings. We want clarity because there’s no formal communication on this hence we want to see the letter the municipality wrote to Nersa regarding the IBT because we also would like to see if this availability charge has been mentioned.”Kepe highlighted the importance of the City’s correspondence to Nersa saying the revised tariff would have a significant impact on the City’s approved budget, which is based on the flat rate.ANC ward 59 councillor Bulelani Matenjwa said he was concerned about how the City’s administrative leadership was interpreting and implementing the court judgment.“The court did not say the rebates must be done immediately; it said upon approval of the revised tariff by Nersa and as things stand, the municipality has not yet received a response from the regulatory body. “Which begs the question, who told the administration to begin with the rebates? My understanding is that we have to first rescind the council decision we took on the flat rate because that’s what our budget is based on. If we do the rebates and start charging based on the revised rate the City will not have an income and will be setting ourselves up for failure.”Matenjwa said he had not received any complaints from residents in his area regarding the rebates. He also received his the last time he bought electricity.ACDP councillor Lance Grootboom expressed deep concern about the ongoing confusion, delays and technical problems surrounding electricity rebate tokens for Bay residents.ACDP councillor Lance Grootboom on 29 June 2026. (Photo: Nelson Mandela Bay)He said these problems were the consequence of a poorly implemented decision to scrap the IBT at the start of the 2026/27 financial year.“While residents were told that the approved average electricity tariff increase was 10.95%, the structural impact of removing the IBT was far more severe for many lower-consumption households. Some residents were effectively confronted with increases approaching 30%,” Grootboom said.“The ACDP warned against imposing an unfair electricity burden on residents, particularly at a time when households are already struggling with the rising cost of living. The problem now is implementation. Residents are reporting inconsistent outcomes when purchasing prepaid electricity. This cannot become another prolonged municipal administrative failure.”Grootboom said if the municipality failed to properly manage the correction of the tariffs, the consequences could extend beyond individual rebate tokens.He said continued billing and vending problems risked undermining public confidence, affecting revenue collection and placing further financial pressure on residents who were already struggling to keep their municipal accounts up to date.The ACDP calls on the city to urgently:Resolve all technical problems affecting prepaid vending and rebate tokens;Finalise outstanding rebate calculations without unnecessary delay;Clearly explain to residents how rebates are calculated and how they will be received;Provide a clear timeframe for the completion of all outstanding credits; andEnsure that every qualifying resident receives the full amount due to them.Grootboom said electricity customers could not continuously be expected to carry the financial consequences of poor municipal planning and implementation. DM