/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

AfriForum will continue its fight against the National Energy Regulator of South Africa (Nersa)’s illegal and invalid power tariff increase in at least 100 municipalities on Friday, 29 November, in the Pretoria High Court. The civil rights organisation hopes to ensure that a judgment of the High Court, which was delivered in June this year and to which Nersa’s appeal has also been rejected, is implemented while the organisation waits on the judgment of a full bench of judges in the High Court, as instructed by the Supreme Court of Appeal. Millions of municipal power consumers across the country are suffering unprecedented financial damage due to the continued application of these unlawful tariff increases.

Nersa and the South African Local Government Association (Salga) petitioned 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.

However, AfriForum is now turning to the High Court in terms of Section 18(3) of the Superior Courts Act 10 of 2023 to act in the interest of these power 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 applies to grant the implementation of the judgment for the interim period. Section 18(3) states that decisions can be implemented if it can be proven that the parties concerned will “suffer irreparable harm” if this is not done. AfriForum is convinced that the damage that consumers have already suffered since the implementation of the new power tariffs is indeed sufficient to justify and necessitate the implementation of the High Court’s decision.

These steps follow after the High Court ruled in AfriForum’s favour in June this year and confirmed that Nersa’s decision to consider municipalities’ applications for power tariff increases without the required cost-of-supply studies is unlawful and invalid. The submission of cost-of-supply studies is a required component of municipalities’ applications for tariff increases prescribed by the Electricity Regulation Act 4 of 2006. Cost-of-supply studies are of critical importance because they give a clear outline of what municipalities’ rates should be in order to properly deliver the service and maintain networks.

However, on 1 July this year, municipal power tariff increases were implemented nationwide at nearly 180 licensed electricity distributors, despite the fact that only about 70 distributors had conducted cost-of-supply studies.

According to Morné Mostert, Manager of Local Government Affairs at AfriForum, it is essential that the order is implemented in this case as consumers suffer potentially irreparable damage while waiting for the full bench judges’ verdict. “It may take months, and for as long as the implementation of the invalid tariffs continues, the impact increases by the day. Consumers are now – despite a court ruling that already ruled months ago that the increases are unlawful and invalid – still being punished for municipalities and Nersa’s mismanagement. The correction of Nersa’s error must not be prolonged at the expense of consumers,” warns Mostert.

Mostert warns that the impact on prepaid power consumers in particular is extensive and results in an administrative nightmare. “However, the compensation or crediting of consumers is now essential and urgent,” concludes Mostert.

Issued by AfriForum