AfriForum takes on Nersa in the High Court regarding reasons for Eskom’s R54 billion tariff hike
AfriForum’s court application to compel the National Energy Regulator of South Africa (Nersa) to provide reasons for its decision to grant an additional Eskom tariff increase amounting to approximately R54 billion has been removed from the urgent roll. Consequently, the matter will be heard in the Pretoria High Court at a later date. AfriForum questions the rationality and transparency of the tariff-setting process.
The dispute stems from a so-called calculation error that led Nersa to grant Eskom additional electricity tariff increases in February of this year, intended to make up for a shortfall of approximately R54 billion resulting from the original increases. Under this decision, increases of 8,76% for the 2026/2027 financial year and 8,83% for the 2027/2028 financial year were approved.
Shortly after the announcement, AfriForum insisted that Nersa disclose the reasons for the increase. However, despite a statutory obligation to do so, Nersa failed to provide the reasons for the decision, prompting the civil rights organisation to turn to the court to seek clarity.
The matter was scheduled to be heard in court on Tuesday but was later reallocated to today.
In the meantime, on Sunday evening – the eve of its court appearance – Nersa published the reasons for the approved increase. The regulator had previously argued in its replying affidavit that it was not in a position to make the reasons available sooner. AfriForum maintains that this statement, as contained in the affidavit, confirms the irrationality of Nersa’s decision – which appears to have been made back in February without proper consideration.
The revised decision regarding Eskom’s sixth multi-year price determination application (MYPD6) follows the conclusion of a limited public participation process in January. In December, the High Court in Pretoria ruled in AfriForum’s favour, finding that the earlier settlement reached between Eskom and Nersa, intended to rectify a calculation error, had taken place without proper public participation. The court furthermore ruled that any redetermination of the tariff increase must be lawful, rational, and transparent.
The public participation process, which concluded in January, was therefore aimed at complying with the prerequisites of the National Energy Regulator Act and the Energy Regulation Act.
According to Dalena Beyers, AfriForum’s Advisor on Local Government Affairs, Nersa’s prolonged silence regarding the reasons for its revised decision aligns with the secrecy surrounding the original settlement between Eskom and Nersa. “This increase affects all electricity consumers. Therefore, proper public participation and the disclosure of the reasons for the decision are essential and in the interest of consumers. The process was clearly questionable from the outset, pointing to irrational decision-making and a lack of transparency – and the court will now have to provide clarity, in the interest of all electricity consumers, regarding the lawfulness of this decision and Nersa’s withholding of information about it,” Beyers explains.
