By Daniel Itai.
Pretoria, Gauteng. (News of The South) -The North Gauteng High Court has rejected Eskom’s proposed 16.6 percent electricity traffic hike.
Judge Jody Kollapen who delivered the judgement said Regulator of South Africa (Nersa) has the sole power and expertise to determine electricity tariff increases and not the courts.
“A principled difficulty that arises for the Court is what to make of the almost 17 percent proposed increase. While Nersa has in its reasons for its decision dealt with the consequences of what an increase of that proportion will have on the economy, employment, electricity sales and inflation, the determination of what an appropriate increase should be ideally left in the hands of the regulator.
Determination of a suitable tariff is a complex matter and requires careful weighing and balancing for a number of factors.
The legislature has appointed a specialist body with the necessary expertise to do precisely that and a Court should respect the carefully crafted boundaries of its powers.
Whether an increase of about 17 percent is consistent with the case advanced, whether it strikes a fair balance between users and licensees and its overall impact on the economy are all complex matters that is for obvious reasons best left to agencies with the necessary expertise,” said the Judge.
During court proceedings, Eskom urged that the price of electricity is low, while Nersa believes it’s too high.
Eskom maintained it needs Nersa to increase electricity tariffs so it can fulfill its operational obligations.
However, Nersa expressed electricity consumers won’t be able to afford the increase Eskom is asking for.
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