https://newsletter.en.creamermedia.com
Africa|Energy|Financial
Africa|Energy|Financial
africa|energy|financial

Nersa plans to appeal High Court ruling in AfriForum ‘unlawful’ tariff increase case

2nd July 2024

By: Marleny Arnoldi

Deputy Editor Online

     

Font size: - +

The National Energy Regulator of South Africa (Nersa) plans to appeal a court order issued by the Pretoria High Court in a case brought forward by nonprofit civil rights organisation AfriForum.

AfriForum submitted an urgent application to the court to prevent Nersa from proceeding with considerations on licenced electricity distributors’ tariff applications, including municipal and private distributors, for the 2024/25 financial year.

The High Court found that Nersa’s decision to consider municipalities’ applications for electricity tariff increases without the required cost studies is unlawful and invalid.

The ruling follows Nersa having completed the approval of tariff increases for 187 distributors, effective July 1.

The court order has an impact on distributors that have submitted their tariff applications to Nersa without cost of supply studies.

This means that the regulator may not consider any applications for electricity tariff increases from municipalities unless the required cost studies are also submitted.

As such, the court ordered that municipalities whose cost studies are absent will have to continue charging electricity tariffs based on the existing rates approved for the 2023/24 financial year. Municipalities’ applications for electricity tariff increases for the 2024/25 financial year can indeed be reconsidered by Nersa provided the necessary cost studies are submitted within 60 days from today.

With the leave to appeal having been filed, the Superior Courts Act, 2013 provides that an application for leave to appeal suspends the operation and execution of a decision, pending the outcome of the application.

Consequently, Nersa’s decisions still stand and distributors can proceed to implement the approved tariffs while the appeal is being processed.

AfriForum maintains that only 66 of the 178 approved applications submitted cost studies.

 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir
Weir

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.095 0.199s - 209pq - 2rq
Subscribe Now