Outa in court today to challenge Eskom’s tariff hike

The organisation believes it has a strong case to stop the tariff adjustment from coming into effect tomorrow.

A small group of people, from the Right to Know Campaign, were picketing outside Gallagher Estate on 4 February 2015.

JOHANNESBURG - The Organisation Undoing Tax Abuse (Outa) has decided to go ahead with its urgent court bid to stop Eskom from implementing a 9.4 percent electricity hike, even though the National Energy Regulator of South Africa (Nersa) has provided reasons for its decision to approve the increase.

Outa believes it has a strong case to stop the tariff adjustment from coming into effect tomorrow.

Nersa denied Eskom's initial request for a 16.6 percent hike.

Outa's Ivan Herselman says the organisation believes there are strong legal grounds that could convince a judge to stop Eskom from implementing the tariff hike.

He says although Nersa's reasons for granting the 9.4 percent increase have now been published, the lobby group believes this was done too late.

"You want to let the ores bolt prior to us having time to analyse the decision and decide whether want or don't want to challenge it."

Eskom's Khulu Phasiwe however disagrees.

"Now that this information has been made available to them, it's up to them whether they want to proceed with the case or not."

Earlier this month Nersa called the decision a fine balancing act, saying it had to consider what consumers can afford versus what Eskom needs.