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4mo ago

Court Quashes Eskom–Nersa R54 Billion Secret Tariff Deal

The judge found the closed‑door compromise unlawful for excluding the public, compelling Nersa to redo the revenue decision through a transparent process.

Nersa purposefully dealt with the matter behind closed doors and the decision to settle without public participation was ‘clearly contrary to public policy’. Picture: AdobeStock
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Overview

  • The Pretoria High Court refused to make the July settlement an order of court and remitted the issue to Nersa for a public consultation process.
  • Judge Jan Swanepoel called the R54 billion figure “little more than a thumb‑suck” and found Nersa’s conduct partly self‑serving to avoid scrutiny after its mistakes.
  • The court ordered a redetermination for 2026/27 and 2027/28 with public submissions due by January 21, 2026, while 2025/26 tariffs remain in place.
  • The dispute arose from conceded calculation errors in Nersa’s MYPD: an initial R107 billion undervaluation, a R44 billion recalculation by Nersa, and Eskom’s R62–66 billion claim that produced the R54 billion compromise.
  • Tight statutory timelines, including a separate order requiring municipal bulk tariff notifications by January 31, create a material risk that any recovery by Eskom will be delayed.