A broad coalition is seeking legal action against the government and Eskom over the ongoing blackouts.
UDM leader Bantu Holomisa, Bosa leader Mmusi Maimane and Numsa secretary general Irvin Jim, confirmed that the papers will be served in the North Gauteng High Court.
Increase the rate
The action is legally intended to stop the 18.65% rate hike by South Africa’s National Energy Regulator (Nersa) and end load shedding.
Nersa gave Eskom a tariff increase of 18.65% for the 2023 financial year to cover its debt, which is estimated at R71. 4 billion in 2022, and is expected to be in the region of R80 billion this year.
The state-owned electricity supplier initially asked for a 32% increase to cover its debt.
“Today we can confirm that papers will be served in the North Gauteng High Court, asking for a hearing to be held on Tuesday 28 February 2023.
The seven respondents in the case are: Eskom, Minister of Public Enterprises Pravin Gordhan and Director General Kgathatso Tlhakudi, Minister of Mineral Resources and Energy Gwede Mantashe and Director General Jacob Mbele, President of the Republic of South Africa, Cyril Ramaphosa, and the National Energy Regulator of South Africa (Nersa ), ” read the statement.
Read more: Nersa approves 18.65% increase in electricity tariffs for Eskom
Effects of blackouts
“The continuous outages that have affected the country’s electricity supply since the second half of 2007 have affected all South Africans, especially small businesses, health facilities and educational institutions. The energy crisis has affected South Africa’s economic growth and led to job losses, business closures, and rising inflation.
According to the party, the blackout costs the economy R4 billion per day, adding confidence that the court will act in the interest of the people and hold the government accountable.
Ramphosa intervened
Meanwhile, President Cyril Ramaphosa has told electricity utility Eskom to delay rate hikes until the issue of load shedding has been resolved.
Ramaphosa, during his closing speech at the ANC Free State provincial conference, said the government felt Eskom should not impose a tariff increase.
He has given the Eskom board “homework” to consider proposals to suspend rates.
“I have made a proposal that the increase of 18.65% be suspended during load shedding like this. We understand the difficulties you are experiencing, we consider the hardship,” he said.
NOW Read: Ramaphosa tells Eskom to delay tariff hike