NERSA takes legal fight against AfriForum over electricity tariffs to SCA

JOHANNESBURG - The National Energy Regulator of South Africa (NERSA) has confirmed that it's escalating its legal fight with lobby group AfriForum over electricity tariffs to the Supreme Court of Appeal.

NERSA's method to determine municipal tariff increases is again under fire after the Pretoria High Court previously ruled against what it labelled unlawful tariff hikes.

AfriForum initiated legal action against NERSA earlier this year, challenging the tariff increases. 

The lobby group accused NERSA of granting price hikes to municipalities that had failed to submit cost-of-supply studies as required by law.

READ: AfriForum welcomes rejection of NERSA tariff hike appeal: ‘We need transparency’

AfriForum claimed that out of 178 municipalities, just over 100 had not submitted all the required documents to get approval from NERSA, adding that this means they were enforcing unlawful tariffs. 

NERSA said its legal teams were now in the process of petitioning the court’s ruling.

"AfriForum has not yet received any documentation that suspends the legal force of the High Court order and therefore we will continue to encourage consumers to stand up against the illegal and invalid increases that NERSA seems to want to implement at all costs," said AfriForum's Morne Mostert. 

This means municipalities that haven’t submitted cost of supply studies can only charge electricity rates approved for the 2023/24 financial year.