Court rejects Eskom and NERSA’s R54 billion closed-door settlement
The Pretoria High Court blocked Eskom and NERSA's attempt to settle a R54 billion tariff dispute privately, requiring public input.Summary
The Pretoria High Court has overturned a proposed settlement between Eskom and the National Energy Regulator of South Africa (NERSA) regarding a R54 billion tariff dispute. The settlement aimed to correct errors in Eskom’s revenue determination, potentially allowing the utility to recover funds through increased tariffs. However, the court found that the agreement bypassed necessary investigations and public participation. The court has set aside NERSA’s original revenue decision and refused to enforce the settlement, mandating that NERSA redetermine the amount owed to Eskom with full public involvement. AfriForum, which intervened in the case, celebrated the ruling as a victory for consumer rights and transparency, stating that “NERSA and Eskom cannot make decisions behind closed doors that would burden the public with billions of rands in costs.”
(Source：Ewn)