Eskom launches legal action over power price hikes

South Africa’s indebted Eskom Holdings SOC Ltd. has started court proceedings to review the regulator’s rejection of a five-year price plan that outlines how much the utility can charge electricity consumers.

“The urgent High Court review requires Nersa to urgently process the Eskom revenue application for at least one year, as required by law,” Eskom stated.

The National Energy Regulator of South Africa (Nersa) called for a pricing methodology review on 30 September and discarded the MYPD 5 revenue application of Eskom, which is unprofitable and struggles under about R400 billion rand of debt.

Eskom said that its proposed timeframe allows for a decision to be made in time for implementation by 1 April 2022, as Nersa’s proposal “is impossible both from a legal process and timing point of view“.

The regulator and Eskom have brought a number of disputes to court over what the company can charge for electricity.

The latest court action “is the only available option to avoid extremely serious and negative consequences for Eskom and by necessary consequence to National Treasury,” the utility said.

“It is hoped that NERSA will respond in a manner that allows for the stability of the country’s economy and the electricity industry,” Eskom said.

Reporting with Bloomberg.

Now read: Eskom electricity prices have skyrocketed — and it’s going to get worse

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Eskom launches legal action over power price hikes