The Organisation Undoing Tax Abuse (Outa) voiced its disappointment when the North Gauteng High Court judge dismissed its court application to postpone Nersa’s 9.4 percent electricity tariff hike, which would help Eskom pay for its R11.241 billion shortfall.
However, Outa director of legal affairs, Ivan Herselman said it would remain committed to ensuring that improved transparency and meaningful engagement with the public on matters of importance takes place.
Outa approached the North Gauteng High Court for an interdict to prohibit Eskom from implementing the electricity tariff increase of 9.4 percent on 1 April, on the grounds that no reasons had been provided for deciding to implement the increase as was required by the National Energy Regulator (Nersa).
On 29 March, after Outa had already launched their application, Nersa then provided their written reasons for its decision. Outa argued that insufficient time had been made available for the organisation to meaningfully consider the reasons and facts, provided by Nersa, before the tariffs would come into effect.
“We sincerely believe that the harm to the public will be irreversible as it is not practical for Eskom and municipalities to repay or credit millions of consumers if their reasons are to be found wanting,” said Herselman.
Outa was not the only party challenging the increase, however, as other parties decided to enter into a settlement agreement with Eskom and Nersa to waive the interdict in exchange for expedited dates for a review application.
“We believe it was necessary to seek the interdict and decided to proceed with the hearing. Naturally, we are disappointed that the ruling did not go our way, but we remain committed to ensuring that improved transparency and meaningful engagement with the public on matters of importance takes place. While urgent applications are inherently risky, this does not mean that we should not seek to bring those to the courts when we believe it is necessary to do so. Our alternative was to do nothing and when weighing up the rule of law on this matter, we had to act.”
Meanwhile Outa’s chairperson, Wayne Duvenage said, “Setting aside the urgency of our application does not in any way deter us from proceeding with a review of the reasons and to seek the necessary information for the granting of the tariff hike.”
Duvenage continued, “The incessant electricity tariff hikes over the past few years have become outrageously unbearable and the public have a right to scrutinise and demand greater efficiency and prudent management from this inefficient state-owned entity.”
