Group fights tariff deal

INTERVENTION: CASE MOVED TO OPPOSED ROLL FOLLOWING APPLICATION

- Antoinette Slabbert

Eskom and the energy regulator Nersa's plan to have a R54 billion settlement made an order of the high court yesterday had to change after civil rights group AfriForum filed an application to intervene.

The settlement, reached behind closed doors in August, followed Eskom's challenge to Nersa's determination of its tariffs for the current and next two financial years on judicial review, accusing Nersa of making mistakes.

After Moneyweb revealed that a settlement was reached, the regulator admitted to the mistakes and disclosed the full extent of the settlement.

Nersa has not yet publicly communicated another R40 billion settlement reached with Eskom in May, which consumers will also have to fund.

AfriForum says it wants to join the case on behalf of its 300 000 members and in the interest of the general public, since the settlement will have an impact on virtually every person and business in the country.

Nersa has already indicated that additional tariff increases will be implemented in the next two financial years to recover a portion of the R54 billion.

According to Nersa's decision in January, Eskom's tariffs increased by an average of 12.74% on 1 April. They were supposed to rise by 5.36% next year and 6.19% the year thereafter.