The High Court of South Africa, Gauteng Division, Pretoria Judge EM Kubushi has handed down an order stating that the Guideline and Benchmarking Methodology adopted by regulatory authority the National Energy Regulator of South Africa (Nersa) in approving municipal electricity increases, is unlawful.
The October 20 judgment states that the Guideline and Benchmarking method, used by Nersa when approving municipal electricity tariffs, as set out in the record of decision issued by Nersa and entitled ‘Determination of the Municipal Tariff Guideline and Revision of Municipal Tariff benchmarks for the 2021/22 financial year’, and as extended to the 2022/23 municipal year, is hereby declared unlawful, invalid and of no force and effect.
The declaration of invalidity is suspended for a period of 12 months, from the date of the order, to allow Nersa an opportunity to correct the defect.
Nersa is prohibited from applying the Guideline and Benchmarking Method when considering and approving municipal electricity tariffs with effect from the 2024/25 municipal financial year.
Responding to Engineering News, Nersa communications head Charles Hlebela said that the entity is currently studying the judgment and will advise on the way forward.