Who and what is AfriForum?

AfriForum is an Afrikaans civil rights organisation that protects the rights of minority groups at national as well as provincial level, and anyone who can identify with AfriForum’s principles and objectives may join the organisation. AfriForum’s community plan focuses on mobilising communities to thus take control of their own streets and neighbourhoods again. AfriForum ensures that your constitutional and civil rights are recognised and protected at national level.

Wie en wat is AfriForum?

AfriForum is ’n Afrikaanse burgerregteorganisasie wat die regte van minderheidsgroepe op sowel nasionale as provinsiale vlak beskerm, en enigiemand wat met AfriForum se beginsels en doelstellings kan identifiseer, mag by die organisasie aansluit. AfriForum se gemeenskapsplan fokus daarop om gemeenskappe te mobiliseer om só weer beheer terug te neem oor hul eie strate en woonbuurtes. AfriForum verseker dat jou grondwetlike én burgerregte op nasionale vlak erken en beskerm word.

Judgment reserved in case regarding R54 billion settlement

The case concerning a settlement between Eskom and the National Energy Regulator of South Africa (Nersa), which would cost consumers approximately R54 billion, was heard in the Pretoria High Court yesterday (10 December). AfriForum is opposed to this settlement, which seeks to correct an error in Eskom’s allowable revenue determination without the proposed investigations, proper public participation, or referral back to Nersa. Judgment is reserved.

AfriForum intervened in this matter in October this year after Eskom’s original court application for a review of Nersa’s decision regarding Eskom’s Multi-Year Price Determination (MYPD) application tariff application suddenly turned into a settlement agreement. This settlement agreement would have allowed Eskom to increase electricity tariffs by almost 9% annually, thereby recovering an additional R54 billion from already overcharged consumers.

AfriForum outlined the malice of Nersa’s reasoning in court and pointed out that Nersa would particularly benefit from this. In the annexure to their answering statement, Nersa even said that an advantage of the settlement with Eskom would be that the agreement would become binding and that it would give Eskom the desired outcome without the details being exposed in open court and exposing Nersa to further scrutiny. It appears that Nersa believes the settlement will also limit the possibility for the court to issue an order that could redefine Nersa’s regulatory powers.

“This reasoning from Nersa shows that the regulator no longer has control over its sector. To say that you want to settle out of court because it will protect Nersa from further exposure and prevent a fair and equitable order is shocking. Nersa can no longer be seen as a regulator that wants to act in the interest of the consumer but rather in their own interest and to the benefit of Eskom,” says Morné Mostert, Manager for Local Government Affairs at AfriForum.

AfriForum further argued that this case raises a critical issue: whether two organs of state on opposing sides in a judicial review should be allowed to settle in such a way as to avoid court oversight and to bypass meaningful public input. According to AfriForum, such a settlement would set a dangerous precedent that would allow state entities to escape liability.

If AfriForum’s court challenge is successful, Nersa’s original decision will be referred back to Nersa for reconsideration, along with an opportunity for proper public participation.

Should the settlement become a court order, the R54 million will be phased in as follows:

R12 000 million will be recovered during the 2026/27 financial year, resulting in an increase of 8.67% instead of the 5.36% approved in January 2025.
R23 013 will be recovered during the 2027/28 financial year, which will result in an increase of 8.85% instead of the 6.19% approved in January 2025.

“Eskom and Nersa cannot secretly negotiate decisions that will burden the public with billions in costs without meaningful input – yet they arrogantly argue that no further public participation is necessary. As Nersa has become the lapdog of Eskom and municipalities, AfriForum will remain a vigilant watchdog ensuring accountability for all South Africans,” Mostert concludes.