South Africa: High Court Rejects Eskom And Nersa’s R54 Billion Settlement

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

The ruling follows efforts to correct errors in Eskom’s allowable revenue determination without the proposed investigations, proper public participation, or referral of the matter back to Nersa.

AfriForum intervened in the case as a party with a direct and substantial interest in the proceedings.

In its judgment, the court reviewed and set aside Nersa’s original revenue decision and declined to make the settlement agreement an order of court.

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