GQEBERHA – Nelson Mandela Bay residents are starting to receive electricity rebates following a High Court order requiring the municipality to restore the Inclining Block Tariff (IBT) retrospectively from 1 July.

However, some residents are receiving different outcomes when buying prepaid electricity, causing confusion about whether they have received their rebates.

Why are residents getting different outcomes?

DA Nelson Mandela Bay spokesperson for Budget and Treasury Brendon Pegram said he had received numerous complaints from residents about different electricity rates and rebate tokens.

Some residents bought electricity at the previous rate and received a free electricity token, while others who bought at different rates either received or did not receive an additional token.

Pegram said he had engaged municipal officials in the Revenue Division and Budget and Treasury.

According to information provided to him, municipal systems can identify qualifying customers who received rebates, those who should have received them but did not, and customers who were charged at different rates.

“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,” Pegram said.

What should prepaid customers receive?

A qualifying prepaid customer should receive two separate tokens:

• The normal electricity token for the electricity purchased.
• A separate rebate token providing the additional electricity units owed to the customer.

The DA supplied an example of a 1 September transaction in which both tokens were issued.

Pegram said residents should not assume they have lost their rebate simply because they have not received a token.

“Based on the information provided to me, the Municipality is able to identify the affected customers and the discrepancies on its systems,” he said.

Why are residents receiving rebates?

The rebates follow a Gqeberha High Court order requiring the municipality to restore the IBT for qualifying domestic electricity customers retrospectively from 1 July.

The municipality had changed qualifying domestic customers from the IBT to a flat tariff at the start of the 2026/27 financial year.

The municipality has applied to NERSA for approval of the consequential tariff amendments. The restoration of the tariff remains subject to this regulatory process.

Pegram said the municipality has so far processed rebate calculations for electricity purchases made between 1 and 31 July.

The August calculations have not yet been completed.

Qualifying customers do not need to submit individual claims. Conventionally billed customers are expected to receive applicable rebates as credits or adjustments on their municipal accounts.

Pegram has formally written to the relevant municipal department and the CFO seeking clarity on the system problems and when outstanding rebates will be resolved.

“I have been assured that these discrepancies will be addressed and that customers who are entitled to rebates but have not yet received them will not simply be forgotten,” he said.

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