Judgment reserved in Eskom tariff challenge

08:31 (GMT+2) Thu, 16 Jun 2016

Judgment has been reserved in the Gauteng High Court in a matter that could have far reaching consequences for electricity pricing.

Four PE businesses, supported by the Nelson Mandela Business Chamber, are challenging Eskom's additional electricity increases which came into effect on 1 July.

"The Eastern Cape businesses challenged the National Energy Regulator of South Africa (Nersa)'s decision to approve an additional R11.2-billion increase for Eskom through the Regulatory Clearing Account, said a statement from the Chamber.

"The argument by the energy intensive Nelson Mandela Bay businesses was that Nersa did not comply with the methodology when it approved Eskom's application and that the decision was unlawful, irrational, and procedurally unfair," the statement said.

"Eskom has already undertaken to repay amounts overpaid following the April increase if Nersa's decision is declared unlawful and set aside by the court."

"The Nelson Mandela Bay Business Chamber has over the past year 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," the Nelson Mandela Bay Business Chamber said.

"As one of the prominent business chambers in South Africa we pride ourselves on taking the lead in lobbying on behalf of our 700 members on issues affecting the sustainability of our member companies."