High court rejects Eskom and Nersa’s R54 billion settlement

AfriForum has welcomed the decision of the High Court in rejecting Eskom and National Energy Regulator of South Africa (Nersa) attempt to reach a R54 billion settlement behind closed doors in the power supplier’s tariff dispute.

This comes after attempts to correct the error in Eskom’s allowable revenue determination without the proposed investigations, proper public participation or referral back to Nersa.

AfriForum intervened in the matter as a party that has a direct and substantial interest in the proceedings.

The court reviewed and set aside Nersa’s original revenue decision and refused to make the settlement agreement an order of court.

The settlement would have allowed Eskom to recover approximately R54 billion from electricity consumers through substantial tariff increases, without proper investigation or meaningful public participation.