|

AfriForum questions constitutionality of NERSA’s secret Eskom settlement

AfriForum questions the constitutionality of the National Energy Regulator of South Africa (NERSA) secretly settling tariff disputes with Eskom behind closed doors. According to the civil rights organisation this practice may undermine the principles of transparency, accountability, and the protection of consumers, which NERSA is constitutionally obligated to uphold.

In its statement of 27 August, NERSA admitted to errors in its Multi-Year Price Determination (MYPD6) revenue decision and confirmed that Eskom will receive an additional R54 billion over three years. This will see electricity prices for the 2026/2027 and 2027/2028 financial year increase to nearly 9% per year, excluding further adjustments.

NERSA remained silent on this settlement until the media exposed the matter. AfriForum believes that withholding such critical information from the public, who will ultimately bear the cost, represents a serious breach of trust and gross negligence by the regulator.

“NERSA itself admits to the billions of rand worth of errors in its revenue calculations. By concluding a secret settlement with Eskom instead of subjecting the matter to full transparency and public participation, NERSA has acted in a way that may be unconstitutional and unlawful. Consumers should not carry the burden of the regulator’s mistakes,” says Morné Mostert, Manager of Local Government Affairs at AfriForum.

AfriForum stresses that NERSA is constitutionally and statutorily obliged to act in the public interest. Section 195 of the Constitution requires transparency and accountability in public administration, while the Promotion of Administrative Justice Act compels regulators to provide reasons for decisions that materially affect rights.

AfriForum will subsequently consult with its legal team regarding the constitutionality of NERSA’s secret settlement and consider further steps.

“Decisions on electricity tariffs must be lawful, fair and transparent. AfriForum will consult its legal team on whether NERSA’s decision to settle tariff disputes with Eskom in secret is constitutional and decide on further legal action to protect the interest of citizens,” Mostert adds.

Similar Posts

Magsmisbruik