Massive court win for Business Chamber against NERSA and Eskom

AUGUST 17, 2016

In its relentless efforts to reduce electricity pricing for businesses in the city, the Nelson Mandela Bay Business Chamber together with local energy intensive industrial companies secured a massive win for electricity users in South Africa.

The North Gauteng High Court on Tuesday morning handed down judgement in favour of the Nelson Mandela Bay Business Chamber and the energy intensive industrial companies based in Nelson Mandela Bay, in an application brought against the National Energy Regulator of South Africa (NERSA) and Eskom earlier this year.

In the application, which was heard in the North Gauteng High Court in June this year, the Chamber and the energy intensive companies asked for the R11.2 billion regulatory clearing account increase to the Eskom tariff to be declared unlawful and set aside based on numerous irregularities in the approval process.

Nelson Mandela Bay Business Chamber Deputy President and Electricity Task Team Chamber Board lead, MC Botha, said the High Court confirmed both applicants argument to be correct and declared the regulatory clearing account approval to be irrational, unfair and unlawful.

“We are very satisfied with the outcome of the judgement as this is a massive win not only for businesses in Nelson Mandela Bay, but for all electricity consumers in the country. The Nelson Mandela Bay Business Chamber will continue to champion the interests of its members in particular and commerce and industry in general,” Botha said.

Given the significance of the matter, the Business Chamber is in the process of studying the detailed judgment and will release a more comprehensive response on the full implications of the judgement in due course.

Through extensive lobbying work and the efforts of our task teams, the Nelson Mandela Bay Business Chamber has positioned itself as the authoritative voice of business on pertinent issues of the cost, quality and security of supply of electricity in South Africa and the city of Nelson Mandela Bay.