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The Pretoria High Court recently became the center stage for a significant legal confrontation involving AfriForum, the National Energy Regulator of South Africa (Nersa), and the South African Local Authorities Association (Salga). The crux of the dispute revolves around the implementation of electricity tariff hikes approved by Nersa for over 100 municipalities, which were introduced without the completion of mandatory cost-of-supply studies, violating regulatory requirements.
These proceedings follow a prior ruling by the same court in June, which invalidated Nersa's decision due to non-compliance with procedural prerequisites. Nersa's subsequent appeal was dismissed in November by the Supreme Court of Appeal, which directed a review by a full bench in the High Court, a decision closely monitored due to its potential impact on millions of South African electricity consumers.
AfriForum's legal maneuver is grounded in Section 18(3) of the High Courts Act, which permits the implementation of court decisions pending appeal under circumstances of potential irreparable harm. Represented by Morné Mostert, Manager of Local Government Affairs, AfriForum argued that the continuous application of these illegitimate tariffs inflicts severe financial distress on consumers. Mostert highlighted how municipalities have financially benefitted from these increases, counter to the court's previous directives.
Particularly at risk are consumers using prepaid electricity meters, who face challenges receiving reimbursement for the overcharges accrued since the unlawful tariffs were implemented in July. These citizens, according to Mostert, bear the brunt of the financial burden, complicating their economic circumstances amidst ongoing inflation and economic instability in South Africa.
The argument underscores a broader issue of governance and regulatory compliance, reflecting the tensions between state bodies' regulatory roles and the civic rights of consumers. As AfriForum awaits the impending judgment, set for announcement on Wednesday, 4 December, their case highlights the pressing need for regulatory processes that not only follow statutory requirements but also safeguard public economic interests.
The outcome of this legal battle holds implications not only for the involved parties but also for the regulatory framework governing municipal services in South Africa. It serves as a pivotal moment for consumer rights protection and the enforcement of lawful governance practices.