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The Minerals Council South Africa yesterday (10 November) submitted an application to join AfriForum as a party in the case to finally halt Eskom and the National Energy Regulator of South Africa (Nersa)’s controversial settlement agreement. This follows the settlement – ​​which would have cost consumers around R54 billion over a three-year period – being temporarily halted by AfriForum in October.

AfriForum had already requested in a letter to Eskom in September this year that this case be removed from the uncontested roll so that the organisation could join the case as a party. Eskom opposed the request, arguing that AfriForum did not have the right to intervene and that the public did not have a veto right. According to Eskom, this settlement did not require public participation.

Eskom eventually agreed to transfer the case from uncontested to contested due to pressure from AfriForum. AfriForum and the Minerals Council South Africa are so far the two parties that want to oppose Nersa and Eskom’s application.

The Minerals Council South Africa, which represents most mines in the country, says that despite participating in Nersa’s tariff-setting process, it was not aware that Eskom had challenged the original decision or that Nersa had approved further tariff increases through the settlement. The council argues that setting aside the current decision and replacing it with a higher tariff – without public participation or input from interested parties – would have serious disadvantages for the mining sector.

The council maintains that the matter should be referred back to Nersa to ensure a fair, transparent and inclusive tariff setting process that takes into account all stakeholders.

Eskom has already opposed AfriForum’s application to intervene and argues in their opposing documents that AfriForum and its approximately 300 000 members who must pay this increase do not have a direct interest in this court case.

“It is gratifying to see that another party has stepped up to the plate to stop Nersa and Eskom from making decisions that we as the public will have to pay for, without consulting interested parties,” says Morné Mostert, AfriForum’s manager for Local Government Affairs.

Issued by AfriForum Local Government Affairs manager Morné Mostert