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Despite Eskom court ruling, customers will still pay 9.4% more for electricity

The High Court in Pretoria found Nersa's decision to approve the application for a tariff hike was unlawful.

FILE: Picture: AFP.

JOHANNESBURG - Despite a High Court ruling that has set aside Eskom's tariff increase, customers will still be paying 9.4 percent more for electricity until the National Energy Regulator (Nersa) decides on its next step.

The High Court in Pretoria has found that Nersa's decision to approve the application for a tariff hike was unlawful and the correct procedures weren't followed.

The 9.4 percent tariff increase kicked in April for Eskom's direct customers while the increase for municipal customers came into effect last month.

Despite the mining sector, civil society groups and business succeeding with their application to challenge Nersa's decision to approve a tariff increase, customers will still be paying the 9.4 percent.

The court hasn't given Nersa a revised figure or determined the way forward, however its ruled that Nersa must review its decision.

Energy expert Chris Yelland says Eskom will probably appeal this decision resulting in a long court battle.

"Firstly, to the Supreme Court of Appeal and secondly, to the Constitutional Court, because there are some constitutional issues regarding the separation of powers between the courts and the administration and this could take years to resolve, if ever."

Nersa says it will make a pronouncement in the next 48 hours.

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