OUTA Fails To Halt Eskom’s 9.4% Tariff Hikes


The Organization Undoing Tax Abuse (Outa) said Thursday’s court decision to dismiss with costs its urgent application to interdict Eskom from implementing the approved tariff increase by 9,4% on April 1 2016 would not deter it’s decision.

Outa’s chairman Wayne Duvenage stated this after the union failed to halt Eskom’s increase in its 11th hour urgent high court application in Pretoria .

In the statement, Duvenage said court’s decision will never put a stop on their supposed plan to review the outrageous tariff hike. He said;

“Setting aside the urgency of our application does not in any way deter us from proceeding with a review of the reasons and to seek the necessary information for the granting of the tariff hike.

“The incessant electricity tariff hikes over the past few years have become outrageously unbearable and the public have a right to scrutinize and demand greater efficiency and prudent management from this inefficient state-owned entity.”

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Outa was doing all it could to interdict Eskom for 30 days from implementing the tariff increase until it had the opportunity to study the reasons advanced by the National Energy Regulator of SA (Nersa) for allowing Eskom to implement the hike.

But Judge J L Manamela said Outa would settle for an interdict of 10 days if the court was not inclined to grant it a 30-day reprieve. On 29 March, after Outa had already launched its application, Nersa then provided their written reasons for its decision.

Following the court’s ruling, Eskom’s electricity tariff increase will become effective from Friday April 1, for its direct customers and 1 July 2016 for municipal customers, Eskom said in a statement on Friday.

Eskom seem to be “pleased” that it can “begin recovering it R11.2-billion revenue as approved by the National Energy Regulator of South Africa (Nersa).”

The utility said on Friday that it “welcomes the decision…to dismiss with costs the Organisation Undoing Tax Abuse (Outa’s) urgent application brought to interdict Eskom from implementing the approved tariff increase by 9.4% on 1 April 2016.”

Eskom’s chief financial officer Anoj Singh said;

“Naturally‚ we are disappointed that the ruling did not go our way‚ but we remain committed to ensuring that improved transparency and meaningful engagement with the public on matters of importance takes place.” 

Singh added that they have worked with the legal process and will continue to do so while defending the process they followed in the recovery of costs incurred in the provision of electricity.

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