Eskom studying ruling on tariff increase

The High Court ruled that Nersa's decision to grant Eskom a tariff hike was irrational, unfair and unlawful.

Picture: Reinart Toerien/EWN.

JOHANNESBURG - Eskom says it is studying a ruling by the High Court in Pretoria to set aside the National Energy Regulator's (Nersa) decision regarding a tariff increase.

Earlier this year Nersa approved the power utility's application for a tariff hike of 9,4 percent, which took effect in April.

Applicants including big business, civil society groups and the mining sector approached the courts, arguing Eskom's tariff had numerous irregularities during its approval process.

Yesterday the High Court ruled the decision by Nersa was irrational, unfair and unlawful.

Eskom's Khulu Phasiwe says: "We will in due course make adjustments in terms of what this means for our business, but we will take our cue from the regulator. This case was actually about the regulator."

Meanwhile, Nersa says it's still studying court's decision and its implications.

The energy regulator's Thembani Bukula says they'll make a pronouncement in the next 48 hours. "We are studying the judgment and will decide on a course of action within the next two days."

The judgment may see Eskom losing billions of rands.