Coal Transporters Forum v Eskom Holdings Limited and Others (42887/2017) [2019] ZAGPPHC 76 (26 March 2019)

Coal Transporters Forum v Eskom Holdings Limited and Others (42887/2017) [2019] ZAGPPHC 76 (26 March 2019)

The court found that the applicant failed to prove that NERSA had not taken the necessary regulatory decisions regarding tariffs, prices, and terms for the PPAs. The evidence from NERSA, Eskom, and the IPPs established that generation licences were issued after public participation, and the relevant ministerial...

Source-derived case information.

Citation
[2019] ZAGPPHC 76
Parties
Applicant: Coal Transporters Forum; Respondent: Eskom Holdings Limited; Respondent: National Energy Regulator of South Africa; Respondent: Minister of Energy; Respondent: Independent Power Producers (4th - 38th Respondents); Respondent: Ngodwana Energy (RF) (Pty) Ltd (7th Respondent)
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Case Number
42887/2017
Procedural Posture
Urgent Application / Final Judgment on Application for Interdict and Declaratory Relief
Outcome
Application dismissed with costs, including costs of two counsel for specified respondents.
Judges
P.A. Meyer
Legal Topics
Electricity Regulation Act, Ministerial Determinations, Judicial Review, Power Purchase Agreements, Oudkraal Principle, Promotion of Administrative Justice Act
Administrative Law Civil Procedure Commercial and Corporate Electricity Regulation Act Ministerial Determinations Judicial Review Power Purchase Agreements Oudkraal Principle +1 more

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Parties

Coal Transporters Forum

Applicant

Eskom Holdings Limited

Respondent

National Energy Regulator of South Africa

Respondent

Minister of Energy

Respondent

Independent Power Producers (4th - 38th Respondents)

Respondent

Ngodwana Energy (RF) (Pty) Ltd (7th Respondent)

Respondent

Procedural Posture

Urgent Application / Final Judgment on Application for Interdict and Declaratory Relief

  1. 1 Whether Eskom may lawfully conclude power purchase agreements (PPAs) with independent power producers (IPPs) before the National Energy Regulator of South Africa (NERSA) has taken certain regulatory decisions.
  2. 2 Whether the PPAs already concluded by Eskom with IPPs are invalid due to alleged failure by NERSA to determine tariffs, prices, and terms.
  3. 3 Whether the applicant is entitled to interdictory and declaratory relief in the absence of a review of administrative action.

Ratio Decidendi

The court found that the applicant failed to prove that NERSA had not taken the necessary regulatory decisions regarding tariffs, prices, and terms for the PPAs. The evidence from NERSA, Eskom, and the IPPs established that generation licences were issued after public participation, and the relevant ministerial determinations were binding. The applicant conceded that its application must fail if NERSA had taken the decisions, and further acknowledged that even unlawful administrative action stands until reviewed and set aside. The court applied the Oudekraal principle, holding that both the licences and the PPAs stand and are deemed valid unless and until set aside in review proceedings....

Court Disposition

Application dismissed with costs, including costs of two counsel for specified respondents.

Orders

  • The application is dismissed.
  • The applicant is to pay the costs of opposition of the first, second, third, and specified fourth to thirty-eighth respondents, including costs of two counsel where applicable.