By Lebone Rodah Mosima
The South African Federation of Trade Unions (SAFTU) has welcomed Monday’s ruling by the Pretoria High Court that set aside Eskom’s proposed R54 billion tariff clawback arrangement with the National Energy Regulator of South Africa (Nersa).
SAFTU General Secretary Zwelinzima Vavi said on Tuesday the court had correctly ruled that decisions with such far-reaching consequences “cannot be taken behind closed doors, without meaningful public participation”.
“This judgment is a significant victory for electricity consumers who have endured relentless tariff hikes for more than a decade, while living standards have deteriorated and wages have stagnated,” Vavi said in a statement.
“It reasserts the constitutional principle that regulatory decisions must be transparent, accountable and participatory.”
The ruling, handed down on 21 December 2025, rejected an attempt by Eskom and Nersa to resolve a tariff dispute behind closed doors.
The court found that the proposed agreement sought to correct an error in Eskom’s allowable revenue determination without proper investigation, public participation or referral back to Nersa.
It reviewed and set aside Nersa’s original revenue decision and “refused to make the settlement an order of court”.
AfriForum intervened in the matter after Eskom’s initial court application to review Nersa’s decision on its multi-year price determination was converted into a settlement agreement.
That agreement would have allowed Eskom to recover about R54 billion from electricity consumers through substantial tariff increases, without proper investigation or meaningful public consultation.
“In its judgment, the court found that Nersa’s revenue decision was unlawful and irrational, and based on material calculation errors,” AfriForum said.
“The court also rejected the idea that Eskom and Nersa could correct these errors through a secret settlement that bypassed public scrutiny and participation.”
The court confirmed that electricity tariff decisions affect all South Africans, and that transparency and public participation are non-negotiable elements of lawful regulation.
Minerals Council South Africa also argued that Nersa had acknowledged one of the settlement’s benefits was preventing the details from being disclosed in court.
Reacting to the outcome, Vavi called on Eskom and Nersa to abandon the matter entirely, saying there was “no social, economic or moral justification” for attempting to claw back billions from consumers at a time when Eskom has publicly reported a turnaround and sharply improved profits.
Vavi also called for immediate relief for working-class households, the unemployed, small businesses and struggling industries.
“More fundamentally, this ruling must open the door to a comprehensive review and possible reversal of the substantial electricity tariffs imposed on consumers over the past 15 years,” said Vavi.
“These increases have fuelled de-industrialisation, destroyed jobs, deepened poverty and inequality, and undermined the competitiveness of the South African economy.”
“Consumers cannot be endlessly punished to compensate for governance failures, cost overruns and flawed policy choices.”
The federation further called for the cancellation of existing and future contracts with independent power producers, arguing that they have entrenched high electricity prices and weakened Eskom’s own generation and planning capacity.
Vavi said Eskom should instead be mandated and empowered to roll out publicly owned renewable energy as part of a worker-led, publicly financed and climate-responsible just transition.
“This High Court decision must mark a turning point,” said Vavi.
“Electricity is a public good, not a commodity for extraction. SAFTU will continue to mobilise in defence of affordable energy, democratic regulation and a publicly owned energy future that puts people before profit.”
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