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Cape Town - A North Gauteng High Court judge on Thursday dismissed with costs Outa's court application to postpone Nersa's 9.4% electricity tariff hike to help state utility Eskom pay for its R11.241bn shortfall.
However, the judge said he would delay the reasons for his decision. "Oh, the irony," tweeted energy expert Chris Yelland.
Outa was seeking an interdict against the 9.4% tariff hike on the basis that the public would not have the opportunity to assess and comment on the validity of the reasons why energy regulator Nersa granted the increase.
The irony relates to the fact that Nersa had also given a decision, while delaying its reasons. These reasons were only made public this week, nearly a month after its March 1 decision.
Energy analyst Chris Yelland tweeted, that the "judge points out (the) damage Eskom may suffer if (the) price increase is delayed by 30 days and Outa does not find reason to take Nersa decisions on review".
In its heads of argument, Outa stated that the law required Nersa to provide reasons for its decision at the same time as the decision to allow immediate response by public.
Outa's legal counsel proposed that the approved tariff be put on hold for 10 to 30 days, and the current 12.7% tariff continue.
Eskom spokesperson Khulu Phasiwe, who was also present at the hearing, tweeted statements by Nersa's legal counsel describing Outa's application as "ridiculous", "astonishing", and "a legal absurdity". He added that Nersa's legal counsel asked for Outa's application to be dismissed with costs.
Nersa on Tuesday pre-empted Outa's application for an urgent court interdict by publishing its reasons for the decision to authorise a 9.4% price increase.
In a summary of its decision Nersa said on Tuesday that the Regulatory Clearing Account (RCA) balance of R11.241bn would be recoverable from standard tariff customers, local Special Pricing Agreements (SPAs) and international customers in the financial year 2016/17.
"The amount of R10.257bn would be recoverable from standard tariff customers for the 2016/17 financial year only; the average tariff for standard tariff customers increased by 9.4% for the 2016/17 financial year only; the amount of R983m be recoverable from Eskom’s local SPA customers and international customers for the 2016/17 financial year only; and Eskom must submit a new Multi Year Price Determination (MYPD) application, within three months, based on revised assumptions and forecasts that reflect the recent circumstances," the report said.
Head of energy regulation at Nersa Thembani Bukula told Parliament’s Portfolio Committee on Energy on March 8 that the regulator had to perform a delicate balancing act, weighing up the various needs of electricity consumers and providers in making its decision.
READ MORE: Nersa releases reasons for 9.4% Eskom tariff hike
