Win for consumers: Gauteng High Court rejects Eskom-Nersa settlement over R54 billion tariff hike

The Gauteng High Court has overturned a settlement between Eskom and the National Energy Regulator of South Africa (Nersa) that would have allowed Eskom to recover an additional R54 billion from consumers through increased electricity tariffs. The court ruled that the settlement was untenable due to the absence of public participation and transparency. The initial application stemmed from Eskom’s challenge to Nersa’s tariff determination, but evolved into a settlement aiming to correct calculation errors in Eskom’s allowable revenue.

Judge Jan Swanepoel found Nersa’s initial revenue decision to be unlawful and irrational, criticizing the R54 billion figure as a seemingly arbitrary “thumb-suck” compromise. He highlighted that Nersa appeared motivated to avoid public scrutiny of its errors and that the settlement aimed to bypass judicial oversight. AfriForum and the Minerals Council of South Africa participated as interested parties, arguing that the settlement would have shielded Nersa from further scrutiny.

The court has remitted the matter back to Nersa, mandating public consultation before any final determination is made. This ruling marks the second time in two months the court has sided with electricity consumers, previously finding Nersa’s municipal tariff approvals unconstitutional due to insufficient public participation. The judge emphasized the impact of the settlement on all South African electricity consumers and the importance of transparency in tariff adjustments.

(Source：Iol)