North Gauteng High Court
South Africa’s power giant Eskom has hit a roadblock in its push for more money from taxpayers after the North Gauteng High Court stepped in to stop a controversial R54 billion settlement with the National Energy Regulator of South Africa (Nersa).
The ruling, which came after civil rights group AfriForum got involved, highlights worries about secret deals and a lack of public input in decisions that affect everyone’s electricity bills.
This temporary halt is a big setback for the government’s plan to rescue the struggling utility, as the country grapples with ongoing blackouts and rising costs.
AfriForum’s head of local government affairs, Morné Mostert, welcomed the court’s move, saying it shows the need for openness from regulators.
In a recent interview, he explained how the deal was made behind closed doors, raising questions about whether Nersa is truly looking out for consumers. The case underscores deeper problems in Eskom, like poor management and corruption, that keep pushing up prices without fixing the root causes.
The Court’s Decision and What It Means
The North Gauteng High Court in Pretoria made its ruling on 7 October 2025, moving the matter from the uncontested to the contested roll. This means the settlement between Eskom and Nersa cannot just be rubber-stamped – it now faces proper scrutiny. AfriForum applied to join the case, arguing that the deal lacked transparency and did not consider the impact on ordinary people.
The trouble started earlier this year when Nersa approved a 12.72% tariff hike for the 2025/26 financial year, followed by 5.68% in 2026/27 and 4.41% in 2027/28. Eskom was not happy and took Nersa to court for more money. Instead of fighting it out, the two settled out of court for an extra R54 billion in revenue for Eskom over the next few years. This would add almost 9% more to tariffs in the coming years, hitting consumers hard.
Mostert pointed out that these settlements happened without any public notice or consultation. “If it wasn’t for the media that actually exposed this matter, no one would have noticed these settlements,” he said. AfriForum stepped in because they saw one case still open and wanted to force some accountability. The group believes Nersa, as the watchdog, should protect users from unfair hikes, not make secret pacts with Eskom.
The court agreed that Nersa’s approval did not follow a lawful, transparent, or consultative process. It found that the regulator failed to properly check Eskom’s spending plans or set conditions to stop mismanagement and corruption before okaying the funds. This ruling is not final – it just pauses things until a full hearing. AfriForum hopes this leads to a proper public process where people can have their say.
AfriForum’s Push for Accountability
AfriForum has been vocal about energy issues, often taking on Eskom and Nersa over hikes that burden households. Mostert stressed that this is not just about numbers – it affects real lives. “We’re looking at a total excess of more than 25% – a quarter of the tariff that you’re paying now, you’re going to pay more,” he warned. With South Africa’s economy under strain, higher bills could hurt the poorest the most.
The group argues that Nersa must do “prudency tests” to ensure Eskom is run efficiently before allowing any extra cash. Under the Electricity Regulation Act, only effective utilities can recover costs from users. But Eskom has failed this test for years, plagued by supply chain messes and corruption. Mostert noted that auditors ignore tenders under R25 million, so if big ones are dodgy, smaller ones likely are too.
AfriForum is not stopping here. They have four other court applications to force Nersa to act against municipalities that break license rules. “We need to force Nersa with court orders to intervene,” Mostert said. This shows a pattern where the regulator lacks urgency, even when problems are clear.
In the interview, Mostert referenced the landmark Borbet court case, which told Nersa to balance consumer needs with utility sustainability without hiding poor performance. He questioned why Nersa is not fixing its rules to stop endless hikes. “There needs to be some form of transparency with regards to its decision-making,” he added.
Eskom’s Ongoing Struggles and the Bigger Picture
Eskom claims a R107 billion shortfall and relies on bailouts and hikes to stay afloat. But critics like AfriForum say the real fix lies in sorting out internal rot, not passing the buck to consumers. The utility’s financial statements show supply chain issues going back a decade, with no real progress.
President Cyril Ramaphosa has warned of Eskom’s next crisis, saying bailouts might continue without deep changes. CEO Dan Marokane echoed this, calling for urgent reforms. Yet, the company keeps seeking more money through courts, often settling quietly with Nersa.
This case is part of a wider energy mess in South Africa. Load shedding has eased somewhat in 2025, but costs keep rising. Municipalities owe Eskom billions, adding to the strain. AfriForum and others argue that without transparency, these deals just sweep problems under the rug.
Nersa has said it wants to reopen public talks on the settlement, but AfriForum questions if that’s legal since earlier decisions were court-ordered. “It doesn’t help that they want to do a public participation process that can have no impact on the decision-making,” Mostert explained.
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