OUTA investigating class action against Eskom

We congratulate the Nelson Mandela Bay Business Chambers and others with their successful court application to set aside the 9.4% Eskom electricity tariff increase as a result of NERSA and Eskom’s lack of transparency regarding costs, and the failure to adequately evaluate whether Eskom operated efficiently.

“We applaud the businesses and the Nelson Mandela Bay Business Chambers for successfully challenging the irrational manner within which NERSA approved the increase in Eskom's tariffs. Although not all amounts overcharged will be deemed significant in the eyes of some, it is an absolute matter of principle that Eskom pay back every cent they have overcharged” says Ivan Herselman, Director of Legal Affairs at the Organisation Undoing Tax Abuse (OUTA).

On 31 March 2016, OUTA applied to interdict the Eskom tariff increase on the basis of insufficient time and information to analyse the reasons for the electricity tariff increase agreed to by NERSA, before it comes into effect. We are currently on appeal against the judgment which ruled against us. The judgment of this latest court ruling specifically confirmed our position that Eskom could revert to the lowest tariff, if the interdict was granted.

“We are fully aware that Eskom and/or NERSA are likely to appeal the ruling but will start with our preparations to determine whether a class action is feasible in the circumstances,” said Ivan Herselman.