Why the court’s Eskom ruling could ease pressure on your electricity bill

The SA Federation of Trade Unions (SAFTU) has welcomed the Pretoria High Court ruling that set aside Eskom’s R54 billion tariff clawback arrangement with the National Energy Regulator of South Africa (NERSA), calling it a victory for transparency and hard-pressed electricity consumers.

The court found that a decision with far-reaching consequences for households, workers and the broader economy could not lawfully be taken without meaningful public participation, effectively halting Eskom’s attempt to recover billions through future tariffs.

SAFTU said the judgment restored constitutional safeguards in energy regulation.

“This judgment is a significant victory for electricity consumers who have endured relentless tariff hikes for over a decade, while their living standards have deteriorated and wages have stagnated.

“It reasserts the constitutional principle that regulatory decisions must be transparent, accountable, and participatory,” the union said.

The federation urged Eskom and NERSA to abandon the clawback entirely, arguing that current economic conditions leave consumers with little capacity to absorb further increases.

“There is no social, economic, or moral justification for attempting to claw back billions from consumers at a time when Eskom itself has publicly announced a significant turnaround and sharply increased profit levels.

“Working-class households, the unemployed, small businesses, and struggling industries must be given immediate relief,” SAFTU said.

Beyond the immediate ruling, SAFTU said the judgment should trigger a wider reassessment of electricity pricing.

“These increases have fuelled de-industrialisation, destroyed jobs, deepened poverty and inequality, and undermined the competitiveness of the South African economy.

“Consumers cannot be endlessly punished to compensate for governance failures, cost overruns, and flawed policy choices.”

The union also renewed its opposition to existing and future contracts with Independent Power Producers (IPPs), arguing they have entrenched high electricity prices while weakening Eskom’s own capacity.

It called instead for a rapid expansion of publicly owned renewable energy, led by Eskom and funded through public mechanisms.

“This High Court decision must mark a turning point. Electricity is a public good, not a commodity for extraction,” SAFTU said, pledging continued mobilisation for affordable energy, democratic regulation and a publicly owned power system that prioritises people over profit.

kamogelo.moichela@iol.co.za

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