UDM, Bosa and Numsa go to court to challenge electricity tariff increase

A broad coalition has pursued legal action against the government and Eskom over the on-going blackouts.

UDM leader Bantu Holomisa, Bosa leader Mmusi Maimane and Numsa secretary-general Irvin Jim, confirmed that papers will be served at the North Gauteng High Court.

Tariff increase

The action seeks to legally put a stop to the 18.65% tariff increase by National Energy Regulator of South Africa (Nersa) and stop load shedding.

Nersa granted Eskom the 18.65% tariff increase for the 2023 financial year to cover its debt, which was estimated at R71. 4 billion in 2022, and expected to be in the region of R80 billion this year.

The state-owned electricity supplier had initially requested a 32% hike to cover its debt.

“We can today confirm that papers will be served in the North Gauteng High Court, requesting a hearing to take place on Tuesday 28 February 2023.

 “The seven respondents in the case are: Eskom, the Minister of Public Enterprises Pravin Gordhan and Director-General Kgathatso Tlhakudi, the Minister of Mineral Resources and Energy Gwede Mantashe and Director-General Jacob Mbele, the President of the Republic of South Africa, Cyril Ramaphosa, and the National Energy Regulator of South Africa (Nersa),” read a statement.

READ MORE: Nersa approves an 18.65% electricity tariff increase for Eskom

Effects of blackouts

“The persistent, rolling blackouts that have plagued the nation’s electricity supply since the second half of 2007 have impacted all South Africans, particularly small businesses, healthcare facilities and educational institutions. The energy crisis has affected South Africa’s economic growth and has resulted in job losses, business closures, and increasing inflation.”

According to the parties, the blackouts cost the economy R4 billion per day, adding it was confident the judiciary would act in the best interests of the people and hold the government to account.

Ramphosa intervenes

Meanwhile, President Cyril Ramaphosa has told power utility Eskom to suspend the tariff increase until the load shedding issue has been resolved.

Ramaphosa, during his closing address at the ANC Free State provincial conference, said the government felt Eskom should not implement tariff increase.

He has given the Eskom board “homework” to consider a proposal to suspend the tariff.

“I have made a proposal that the 18.65% increase be put in suspension while load shedding is like this. We know the hardships you have, we are considering those hardships,” he said.

NOW READ: Ramaphosa told Eskom to suspend tariff increase