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 AfriForum welcomes judicial rejection of Eskom-NERSA “behind closed doors” deal

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By Johnathan Paoli

AfriForum has welcomed the recent North Gauteng High Court rejection of an attempt by Eskom and the National Energy Regulator of South Africa (Nersa) to settle a major electricity tariff dispute through a proposed R54 billion agreement concluded behind closed doors, a move the organisation says would have allowed the power utility to recover billions from consumers without proper public scrutiny.

The ruling, delivered on Sunday, follows a legal challenge in which civil society group AfriForum intervened, arguing that the proposed settlement was unlawful and fundamentally undermined transparency and public participation in electricity tariff setting.

The court reviewed and set aside Nersa’s original allowable revenue decision and refused to make the settlement agreement an order of court.

At the centre of the dispute was Eskom’s Multi-Year Price Determination tariff application and an error identified in Nersa’s calculation of Eskom’s allowable revenue.

Rather than referring the matter back

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