Nersa judgement expected soon

2016-06-22 06:00

JUDGEMENT was reserved last week in what could be a watershed case with far-reaching consequences for electricity pricing in South Africa.

A case in the North Gauteng High Court was brought by a group of four Nelson Mandela Bay businesses, and the Nelson Mandela Bay Business Chamber as a fifth applicant, to set aside the additional electricity increases that took effect in April this year.

The Eastern Cape businesses challenged the National Energy Regulator of South Africa (Nersa)’s decision to approve an additional R11.2-billion increase for Eskom through the Regulatory Clearing Account (RCA).

The argument by the energy intensive Nelson Mandela Bay businesses was that Nersa did not comply with the methodology when it approved Eskom’s application and that the decision was unlawful, irrational, and procedurally unfair.

The court case took place over two days and was heard by Judge Cynthia Pretorius.

Advocate David Unterhalter SC represented the applicants, Dennis Fine SC was arguing for Nersa, while Jeremy Gauntlett SC represented Eskom.

Should judgement be in favour of the applicants, the Eastern Cape businesses asked the court to provide a just and equitable remedy that will serve two considerations:

•ensuring that there are no undue disruptions to the provision and pricing of electricity, and

•ensuring that consumers who have overpaid receive just and equitable relief.

Eskom has already undertaken to repay amounts overpaid following the April increase if Nersa’s decision is declared unlawful and set aside by the court.

The Nelson Mandela Bay Business Chamber has over the past year positioned itself as the authoritative voice of business on pertinent issues of the cost, quality and security of supply of electricity in South Africa and the city of Nelson Mandela Bay.

In a media statement the Nelson Mandela Bay Business Chamber said that they pride themselves on taking the lead in lobbying on behalf of their 700 members on issues affecting the sustainability of their member companies.

Cindy Preller, communications manager for the Nelson Mandela Bay Business Chamber, said that judgement on the matter is expected in the next four weeks.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.