AfriForum's Legal Battle Intensifies Over Invalid Power Tariff Increases

In a pivotal courtroom battle scheduled for Friday, 29 November, AfriForum will seek to ensure the execution of a high court decision that invalidated certain power tariff increases authorized by the National Energy Regulator of South Africa (NERSA). This hearing, to be held at the Pretoria High Court, marks another significant step in AfriForum’s ongoing quest to protect millions of South African municipal power consumers from what they argue are unlawful financial burdens.

Previously, in June, the High Court ruled in AfriForum’s favor, determining that NERSA’s decision to approve municipal power tariff increases without the mandated cost-of-supply studies was unlawful and invalid. Cost-of-supply studies are crucial as they detail appropriate rates municipalities should charge to efficiently deliver services and maintain their infrastructure, as stipulated by the Electricity Regulation Act of 2006.

Despite the court's ruling, power tariffs were unjustly hiked on 1 July across approximately 180 licensed electricity distributors. Alarmingly, it was noted that only about 70 of these distributors had conducted the legally required cost-of-supply studies, triggering widespread outcry and legal backlash.

In response to the High Court's decision, NERSA and the South African Local Government Association (SALGA) appealed to the Supreme Court of Appeal in September. The appeal led to a judicial order on 21 November stating that although granted, the matter would be revisited by a full bench at the High Court in Pretoria.

With the appeal process ongoing and potentially lengthy, AfriForum has acted under Section 18(3) of the Superior Courts Act of 2023. This provision allows for the immediate execution of a judicial decision if it can be demonstrated that the concerned parties will "suffer irreparable harm" if it is delayed. According to AfriForum, the financial toll and administrative chaos inflicted on consumers by the persistent enforcement of these invalid tariffs necessitate urgent corrective action.

Morné Mostert, Manager of Local Government Affairs at AfriForum, emphasized the critical nature of implementing the original court ruling swiftly: “Every day that these invalid rates are enforced, the adverse impact on consumers escalates. It’s crucial to rectify NERSA's errors without further penalizing the public,” Mostert explained.

This legal saga not only illustrates the complexities of energy regulation in South Africa but also highlights the significant impact of judicial decisions in the lives of everyday citizens. As AfriForum awaits the full bench's decision, the organization remains committed to advocating for the rights of power consumers and ensuring that regulatory bodies adhere to lawful procedures.