NERSA Appeals for Tariff Hikes Against Court Order; AfriForum Braces for Continued Legal Battle

An intense legal battle continues to unfold as the National Energy Regulator of South Africa (NERSA) escalates its effort to implement contentious electricity tariff increases. NERSA's decision to appeal a previous court ruling that invalidated the tariff hikes for over 100 municipalities has been met with resolute opposition by the civil rights group, AfriForum, which asserts the defense of the power consumers spread across South African municipalities.

Last June, a judgment passed in the Gauteng High Court ruled in favor of AfriForum, finding NERSA's tariff hikes unlawful due to the absent cost-of-supply studies, a legal prerequisite for such increments under the Electricity Regulation Act of 2006. The court decision also warranted the reinstatement of 2023/2024 power tariffs to their original rates for affected municipalities. Although a subsequent application for leave to appeal by NERSA was dismissed on August 19, the energy regulator is now turning to the Supreme Court of Appeal to challenge the judicial decision.

Morné Mostert, Manager of Local Government Affairs at AfriForum, voices disappointment over NERSA's recent actions. Mostert highlighted NERSA's limited progress in implementing a methodology for these crucial studies and derided its neglect of legislation and court mandates. These cost-of-supply studies serve as an integral part of assessing appropriate energy tariffs – safeguarding municipalities’ power sustainability and shielding consumers from unjustified financial strain.

Despite the high court's ruling and the importance of adhering to legislative directives for fairness and transparency, NERSA's determination to pass the tariff increases suggests a discrepancy between their obligations and actions. AfriForum stands firm in ensuring compliance with the law and protection of consumers’ interests, preparing to challenge NERSA's appeal robustly.

Contemplating further on NERSA's accountability and the importance of legal compliance, AfriForum is actively engaging with its legal advisors to deliberate on potential interim solutions as the appeal process progresses.