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AfriForum applies for leave to appeal against ruling on Mogale City power tariffs

AfriForum filed an application for leave to appeal in the Gauteng High Court in Pretoria this week to overturn a court ruling approving the implementation of a new electricity tariff structure in the Mogale City Local Municipality. The same court dismissed the civil rights organisation’s application last week to have the implementation of Inclining Block Tariffs (IBTs) and subsequent tariff increase declared illegal and invalid. AfriForum argues that the case was not properly considered, and the principle of non-joinder was incorrectly applied in the case after the Municipality’s legal team argued that the case could not proceed because the National Energy Regulator of South Africa (Nersa) was not added as a party to the case.

“The court erred in accepting the Municipality’s defence of non-joinder on the grounds that Nersa might have an interest in the matter. Despite the fact that the Regulator in no way indicated that it had a direct or substantial interest in the matter. Consequently, the court erred when it dismissed AfriForum’s case and concluded that Nersa should have been joined to the proceedings,” says Deidré Steffens, Advisor for Local Government Affairs at AfriForum.

To test whether a party should be added to a case, it must be determined whether a court order would adversely affect a party’s interests. AfriForum argues in its application for leave to appeal that the court concluded, without specific findings or legal basis, that Nersa’s interests would indeed be prejudiced or adversely affected by a court order.

The Mogale City Municipality previously applied a fixed tariff structure, but last year decided to implement IBTs and simply announced a 12,7% increase without informing residents of the new tariff structure or giving them the opportunity to challenge the decision. This resulted in some tariffs increasing by more than 30% at certain usage levels.

“Nersa’s primary mandate is to promote a robust and sustainable electricity sector that benefits all South Africans. AfriForum is therefore of the opinion that Nersa would not be prejudiced or adversely affected if the court were to find that the Municipality’s misrepresentation of the new tariff structure and the subsequent implementation of a further increase were unlawful,” says Steffens.

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