The High Court Gauteng division on Friday ruled that energy regulator Nersa’s decision to approve Johannesburg’s City Power’s electricity tariffs for 2019/20 was irrational, irregular, and unlawful, and set it aside. This comes barely a month after the high court found the methodology Nersa has been using to set municipal tariffs countrywide for at least a decade is unlawful and ordered that it be set aside.
The ruling has no retrospective effect and equally has no application to subsequent tariffs. It is also limited to the applicants before the court. Nersa’s methods … Nersa has been using what is referred to as the guideline and benchmark methodology to set municipal tariffs. This differs vastly from the way it determines Eskom’s tariffs, although the legislative framework for all licensees is the same.