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High Court rejects Eskom's tariff hike bid

The court has decided the matter is not urgent but will still review the merits of the case.

Eskom's Megawatt Park offices in Sunninghill. Picture: EWN

JOHANNESBURG - The High Court in Pretoria has dismissed Eskom's urgent bid to have electricity tariffs doubled.

The court has decided the matter is not urgent but will still review the merits of the case.

Eskom is seeking relief from Nersa's multi-year price determination decision which would have seen tariffs increase by just over 8% in the current financial year and by 5.2% in the next financial year.

The cash-strapped utility wants the decision reviewed and set aside, arguing the tariff hikes will not be enough to keep it afloat.

Eskom released a statement on Monday and said it noted and respects the High Court's decision.

Eskom said at the heart of the issue was Nersa’s decision to deduct R23 billion received from government and treating that as revenue. The deduction means the power utility will get less than what it had budgeted for with regards to tariffs.

Nersa, however, is pushing back, arguing that Eskom’s incompetence and maladministration resulted in the public forking out more money.

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