DA files application to stop implementation of Eskom tariff hikes

The DA on Thursday filed an application in the Pretoria high court to stop the implementation of an 18.65% tariff increase by the National Energy Regulator of South Africa (Nersa).

Party leader John Steenhuisen said the application's founding affidavit was in two parts.

The first seeks to interdict the implementation of Nersa's decision to hike tariffs. 

Part B is a semi-urgent review of various government decisions relating to the ongoing energy crisis. One is Nersa’s decision to increase tariffs.

The DA also challenges the government’s decisions to implement load-shedding and its response to the power crisis.

“Pending Part B, Nersa and Eskom should not implement Nersa’s decision. Nersa’s decision is irrational, unlawful and unreasonable,” Steenhuisen said in court papers.

The DA listed 20 respondents, including Nersa, Eskom, President Cyril Ramaphosa, several ministers, all premiers and the South African Local Government Association (Salga).

Steenhuisen said previously that Nersa required Eskom to generally subsidise the price of electricity by imposing below-cost tariffs.

“These tariffs ensured that millions of people in South Africa, who otherwise could not afford electricity, had access to power.

“Nersa has abandoned that policy by steadily increasing Eskom’s tariffs over the past several years and by drastically increasing the tariffs for the next two financial years."

He  added that Nersa took that decision unreasonably and irrationally, without considering the impact it would have on vulnerable people and without taking measures to ensure those reliant on the subsidy could continue to access electricity.

“At its core, Nersa’s decision rests on the premise that an increase in tariffs will somehow assist Eskom in recovering from its dire financial circumstances and providing electricity to its customers. But this premise is flawed,” he said, adding that Eskom could not be saved by the increase.

“Without significant structural reform, Eskom is a lost cause that cannot be saved or in any way assisted by making electricity customers pay more.

“Making customers pay significantly more, while Eskom will only provide less and less electricity, and will incur more and more debt, is patently irrational.”

Steenhuisen said the harm caused by the increased tariffs and concomitant inaccessibility to electricity was irreparable.

“If the tariffs are implemented, then set aside in Part B, people would either have not had access to electricity or paid too much for electricity. Their prejudice, at the stage of Part B, cannot be repaired.”

The DA seeks to have the urgent application heard on March 7 and Part B heard on May 9.

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