AfriForum threatens to take NERSA to court over electrical tariffs

The 36% tariff rise has been called irrational and unjustified, and AfriForum has made it clear that unless the target is revised, it will seek legal challenge

Newsroom

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Newsroom

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August 27, 2024

AfriForum threatens to take NERSA to court over electrical tariffs

AfriForum, a South African civil rights group, has signaled its intention to challenge a proposed electricity tariff hike by Eskom, should the National Energy Regulator of South Africa (NERSA) approve the increase. Eskom has reportedly sought a 36% tariff rise, which AfriForum deems irrational. The organization has pledged to engage in the public consultation process and is prepared to take legal action if necessary.

NERSA recently confirmed receipt of Eskom’s application for tariff increases for the 2025/2026, 2026/2027, and 2027/2028 fiscal years. The regulator must now assess whether the application meets all regulatory requirements and engage in public consultations. These consultations allow stakeholders to voice their concerns or support for the proposed hikes.

Despite assurances from NERSA that it will conduct rigorous prudency tests to determine which components of Eskom's application can be passed on to consumers, AfriForum remains skeptical. The group is calling on the regulator to uphold its commitments to protect consumers from unjustified price hikes.

Morné Mostert, AfriForum’s manager of Local Government Affairs, emphasized the group's long-standing involvement in tariff processes, stating, "We will continue to ensure that the energy sector adheres to the legislative framework. We will not allow Eskom or NERSA to burden consumers with unfair increases and will actively participate to safeguard their interests."

AfriForum has a history of opposing what it views as unfair tariff increases, including those recently sanctioned by NERSA and implemented by several municipalities.

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