4 PE businessmen take Nersa to court on tariff hikes

They want the court to set aside Eskom's April increase and the municipal tariff hike set for July.

FILE: Nersa's public hearings. Picture: Gia Nicolaides/EWN.

CAPE TOWN - Four Port Elizabeth businessmen are taking the National Energy Regulator of South Africa (Nersa) to court in an attempt to stop looming electricity price hikes.

The court challenge, supported by the Nelson Mandela Bay Business Chamber, was heard in the North Gauteng High Court yesterday.

Earlier this year, Nersa approved Eskom's application for a 9.4% tariff increase for the 2016/17 financial year.

The businessmen and the Nelson Mandela Bay Business Chamber claim Nersa did not comply with procedure and that its decision to award the increase is unlawful and irrational.

They want the court to set aside Eskom's April increase and the municipal tariff hike which will come into effect on the first of July.

The chamber says Eskom has agreed to reimburse any overpaid amounts arising from the April increase if the court declares it invalid.

Judgement has been reserved.

The Organisation Uniting against Tax Abuse lost its court bid to interdict the increases in March.