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Judgment reserved in AfriForum’s fight against Nersa’s invalid power tariffs

The Pretoria High Court today reserved judgment in AfriForum’s case against the National Energy Regulator of South Africa (Nersa) and the South African Local Authorities Association (Salga). The civil rights organisation approached the court last week to ensure that a judgment, which was delivered by the same court in June this year and to which Nersa’s appeal has also been rejected, is implemented, while on the instructions of the Supreme Court of Appeal to wait on the verdict of a full bench of judges in the High Court. Judgment is reserved until Wednesday 4 December.

This legal battle follows after Nersa granted electricity tariff increases for at least 100 municipalities, despite these municipalities failing to submit the required cost-of-supply studies as part of their application for increases. Despite a ruling by the High Court earlier this year, which declared Nersa’s approval of municipal rate increases without the necessary cost-of-supply studies unlawful and invalid, municipalities still introduced these new increases in July.

Nersa and Salga then turned to the Supreme Court of Appeal in September to overturn the High Court’s decision. On 21 November, the Supreme Court of Appeal issued an order that the application was granted but would be heard by a full bench of judges in the High Court in Pretoria.

The civil rights organisation argued during the proceedings today that the ongoing implementation of these unlawful tariffs is causing municipal power users to suffer significant financial damage, while municipalities are lining their pockets unlawfully. AfriForum turned to the High Court in terms of section 18(3) of the High Courts Act 10 of 2023 to act in the interest of these consumers and to ensure that the same court’s decision is implemented as soon as possible. Since the implementation of decisions is often postponed pending the outcome of an appeal process, AfriForum specifically applied to grant the implementation of the ruling for the interim period. Section 18(3) allows for the implementation of court decisions during the appeal process if it can be proven that those involved will “suffer irreparable damage” if this is not done. In this case, millions of power users across the country are suffering unprecedented financial damage due to the continued application of these unlawful tariff increases.

AfriForum emphasised the urgency of this matter, highlighting the fact that it’s the consumers who suffer the financial damage while waiting for the appeal process to be completed. “The continued implementation of unlawful tariffs is not only a financial burden, but a violation of consumers’ rights,” says Morné Mostert, Manager of Local Government Affairs at AfriForum. Mostert also emphasises that the implementation of the High Court’s decision will prevent continued financial exploitation of millions of consumers.”

Mostert says consumers who use prepaid electricity are particularly vulnerable at this time, as it will be much more difficult for municipalities to credit these users for the excess amount they have been charged since July this year. “The correction of Nersa’s mistake must not be delayed at the expense of ordinary South Africans,” warns Mostert.

AfriForum remains committed to ensuring that the unlawful electricity tariff increases are corrected without further delay. The organisation is awaiting the High Court’s ruling and will continue its fight to protect municipal consumers.

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